The High Cost of Cheap Staffing

The High Cost of Cheap Staffing

The economy may be recovering, but people are still spending cautiously. One area where businesses think they can cut costs is staffing. They may be saving a buck in the short term, but don’t always realize just what that small monetary savings is really going to cost them in the long run. Finding a good recruiter who offers great service can really save you and your company a lot more money over time.

Here are some services to consider before choosing the cheapest staffing service. Knowing what to look for can help your business save time and money.

The Right Niche – Some companies claim to specialize in everything. What that could really mean is that they don’t specialize in anything. Chances are there are staffing companies that work specifically within your organization’s industry. Not only will these companies be more familiar with the kind of work you do, but they will also probably have a pool of talent available that matches your needs more closely than an agency that works with a broader range of clients.  If your business is something specific such as information technology, medical science, or accounting, a niche agency may be your best choice. They might seem slightly more expensive than one operating in a broader market, but will save you time and money by helping you find the best candidate faster.

Experience – The job turnover rate within staffing agencies can be high. Chances are that the recruiters working for the cheaper companies are new to the industry. An inexperienced recruiter is not going to be familiar with the best ways to match the right candidates to your company’s needs. Look for a staffing agency that employs seasoned recruiters and has a great track record. Someone who knows what they’re doing is going to save you time, money, and the frustration that comes when you hire the wrong candidate.

Variety of Services – Some staffing companies seem great at first – especially when they claim to be able to find you the best candidates for the least amount of money. What many companies discover too late is that the cheap staffing agencies may not offer all the services they need. They may have to hire another company to provide additional services. You should know your organization’s requirements, and find a staffing agency that offers all the services you need. These might include onsite outsourcing, payroll solutions, or recruitment process outsourcing (RPO.) Paying a little bit more for a staffing agency that offers these services can cut costs and dramatically reduce your organization’s staffing expenses.

For help determining what kind of staffing agency your business needs, contact PeopleLink Staffing.