GETTING OPTIONS

Why You Need More Than One Staffing Agency

Eggs in one basket

The concept of diversification is captured in the adage ‘Don’t put all your eggs in one basket’. As commonsensical as this may seem, this logic is rarely applied in business, especially when considering alternative service providers. Our reluctance to try other options hinders us from accessing opportunities that could potentially be game changing for us, especially as businesses.

THE BUSINESS LANDSCAPE HAS CHANGED, AND WITH IT CAME COMPETITION:

Here is a typical scenario we come across often before we educate companies. You have a job opening within your company or you foresee one coming up in the near future. You automatically go to the one reliable staffing agency you have always used over the last few years. That’s great. They understand your business, your culture, your budgetary constraints and quite importantly, they understand you and how your business was 10 years ago. But the economic landscape has changed, there is new competition and many competing agencies are offering unbelievable conditions to earn new business.  They have learnt new ways of doing business that are favourable to clients. Competitors are offering lower rates, shorter transition periods to transfer temp employees to your own payroll, improved customer service, better quality of candidates that improve retention rates. You are reluctant to take advantage of this and exploit the new opportunities  possibly because  you are unaware of the range of options available to you, or more commonly, you are unwilling to accept new offers because the current choice has worked in the past and  you don’t want to ‘rock the boat’. 

BUSINESS SENSE:

It makes sense to you somehow. It may not entirely be business sense, but you convince yourself there is something strategic about the decision to stay with your ‘old faithful’, plus it is your comfort zone. Without any intention to undermine the competence of anyone with the responsibility of recruiting, one factor to consider should always be cost of acquisition. If you could save more by using new providers, other than your ‘old faithful’, and yet cannot bear the thought of losing that long standing relationship, then it is only reasonable to expect you to spread your costs and diverse by scouting for those options that improve your bottom line and supplement the old with the new. After all, what you are after is an excellent candidate. Does it really matter which agency provides the best candidate for you, if the terms are great? The focus of every company should be to make money and become more profitable – unless you are a charity.

THE TEMP ADVANTAGE:

Temps can be used for a variety of assignments, for short term gaps, permanent work, project work, trial basis (temp-hire) and a host of other arrangements.  Most companies also know that with temps, you pay no health insurance (which is a huge cost for employers), dental insurance, sick pay and other benefits. You are not responsible for their workers’ compensation, unemployment insurance and wage. All staffing companies will offer that as an advantage over employing full time, permanent employees but what about the other factors that differentiate one staffing agency from the other. Pay attention to all details such as proximity, rate reduction, willingness to go the extra mile, honest communication, candidate quality etc . Take all of these to consideration when making decisions.

AN IMPOSITION OR OPPORTUNITY?

A large number of businesses we speak with reveal that they receive at least half a dozen offers daily, from staffing companies trying to sell their services and help them fill vacancies. From the tone of each person we speak with, you realise they see this as an imposition. But what this is, in all truth, is an amazing opportunity.

The opportunity to find out who is offering better conditions such as temp to perm transfer (some companies insist temps work for 6 months before clients convert them to their own payroll, some offer 3 months – after this time, no mark-up or fee is charged as the employee effectively becomes YOURS; mark up rates (some companies charge a 60% mark-up to cover unemployment insurance, workers compensation, employee wage etc, while others charge 50% or 45%), and there are so many other clauses worth considering such as access to a larger database of qualified workers, pre-interviewing sessions etc.

THE OPPORTUNITY TO VALIDATE THE FACT THAT YOU ARE WITH ONE OF THE BEST:

If indeed you have every reason to be happy with your provider, this opportunity for comparison will help you validate the fact that you are working with some of the best staffing companies. You get the opportunity to find out which offers are out there and ensure you are getting the best deal possible with regards to response time, quality of candidates, retention rates and cost, for example.

WHAT THE RECESSION TAUGHT US:

The recession has taught us that being price –sensitive is critical to success. Of course, larger businesses may not be as price sensitive as the smaller ones, but we witnessed in the last few years as while SMEs were hit the hardest, large banks were nationalised and taken over by the government and other large well-known companies were affected by loss of demand, non-payment/ unprofitable customers as well as the high cost of bank funding amongst other factors.

As we all now recover from the recession, many companies, both large and small are now realising the importance of being cost conscious, making considerable efforts to have lower overheads, better cashflow, strong long term strategic goals and a constant desire to improve profitability.

KNOWLEDGE IS POWER & CAN BE A GREAT NEGOTIATING TOOL:

Knowledge is not wasted especially in today’s business landscape, it allows us to make informed decisions. So the next time a staffing agency contacts you to introduce their company, get all the information being offered to you. You can use this as a negotiating tool with your existing agencies, use it to try for a better service with a new company or just file it somewhere for the future. There is no obligation to change suppliers just because you hear them speak.

There is however the obligation to do the best for your company, even if it means ‘rocking the boat’ a little!

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Image by Rduris

Global Staffing is a full service staffing company that provides a wide range of recruitment solutions. Speak to us today about your existing job roles and you can get access to thousands of candidates. For a no-obligation discussion, please call us on 763-432-2118 or email Maureen@globalstafingusa.com . For more information, please visit our website at www.globalstaffingusa.com  to find out how we can help you.

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