Do You Have To Pay A Staffing Agency? What You Need To Know
The simple answer to your question is – it depends on who you are. Staffing agencies work with both individuals who are looking for jobs and companies who are seeking to hire.
If you are searching for a job, you should definitely not have to pay a staffing agency. In fact, you should be wary of any recruiter who attempts to charge you fees.
Companies who are looking to hire employees do pay staffing agencies. Typically, they pay a percentage of the new employee’s wage or salary. Percentages can vary between 20% and even 100% or above, although 20%-30% of the new employee’s first-year salary is typical. Have no worries; this won’t be a surprise if you are working with an agency. You will know from the very beginning of your business partnership contract how much a successful recruitment will cost your business.
Why pay for a third-party hiring agency?
Sure, it would be nice if everything in life was free, but we know that’s hardly ever the case. That said, there are a lot of reasons why paying a third party to help recruit, hire, and onboard your new employees is advantageous.
To save money
It costs an average of $4,700 to recruit and hire a qualified candidate for any typical job opening. If that job opening is more niche, you can expect to pay more to reach your desired pool of candidates. At the end of the day, the cost of using a staffing agency to do all the recruiting and hiring with pay off.
To save time
It takes a lot of time and energy from a lot of different stakeholders to run a company. That’s why time is one of the most precious commodities you can have. According to Zippia, the average position in the U.S. is filled within 36-42 days. Staffing agencies can actually cut this time down by throwing all their energy at finding you a crucial employee. This will give you more time and resources to direct elsewhere in your company.
For convenience
A lot of effort goes into finding, interviewing, and hiring a good match. A staffing agency can take all of that off your plate. Staffing agencies also perform such arduous tasks as:
- Writing job descriptions based on your needs and criteria
- Advertising for applicants or reaching out to an already existent talent pool to make matches
- Performing background checks
- Conducting preliminary interviews
- Taking care of necessary onboarding paperwork like contracts, payroll, and tax forms
To ensure a good match
Most importantly, a staffing agency is going to use its time and expertise to find the right person with the right skills (and at the right time) for your company. A third-party staffing agency can make sure that the applicants you eventually interview are well-suited for the job, in both hard and soft skills.
This helps your company avoid dreaded turnover, the scourge of any organization. According to statistics released in August of 2022, 31% of new employees quit within the first 6 months after beginning a new job. According to Gallup, not only can it cost half to two times an employee’s yearly salary to find a replacement, but high turnover can also damage a company’s morale.
A competent staffing agency will ensure that job openings and employees are perfectly matched. This translates to more job satisfaction for the employee and less turnover for the company.
Epic Placements is ready to use our expert recruitment tools to help you find the right people for your company.
If you are a job seeker, you can count on the recruiters at Epic Placements to be honest and open with you every step of the way as we help you make your next move. Use this link to apply now.
For assistance in the hiring process, Use this link to let us help you fill your open position.