Staffing agencies have been around for a long time. For a while small or medium sized business owners assumed they were only for large companies with tons of positions to be filled regularly because at scale there are always people retiring, resigning, being promoted, transferring, etc. But is that true today? Most analysts and business consultants do not think so. Especially thanks to the Internet, staffing agencies have transitioned to helping small and medium sized businesses meet their staffing needs. All companies have challenges finding qualified talent after all. This article will cover some of the main reasons such businesses turn to staffing agencies.
 
All the steps of the hiring process take time away from business owners or their top executives who could be focused on generating revenue, improving the next phase of their product, etc. Putting out a good job posting, reviewing all of the applications, interviewing, etc, takes a lot of time. One big reason small or medium sized businesses turn to staffing agencies is because it frees up time and resources in 2 ways. First the business owners or top executives have to invest much less time in the hiring process and second because staffing agencies are typically more efficient, they will typically produce candidate(s) in less time overall. Some of the candidates/talent known to staffing agencies wouldn’t even normally apply to such job postings but are notified by the staffing agency of said job postings.
 
Why are staffing agencies typically more efficient at the hiring process? Simply put, owners and employees at most staffing agencies have decades of experience in the field so they can better match up the right candidates with the right types of positions, pre-screen candidates to prevent any issues that would require starting the application process over again (and waste time), and better prepare candidates via offered training and certifications. They are also very familiar with applicable laws and tax regulations which eliminates liability for said companies not being familiar and having to pay fines down the road.
 
Flexibility is also something that small and medium sized businesses need more than large companies because their cash flows are different. Staffing agencies can help increase or decrease the workforce depending on if a busy season is coming or going, or the presence of a temporary big project. By only utilizing such personnel when they really need them, small and medium sized businesses don’t have to pay such things as health insurance, unemployment insurance, payroll tax, retirement match, etc, year round. Those dollars add up big time for small and medium sized businesses.