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Should I Hire From Temp Agencies?

June 19, 2013 by Thomas

When it comes time for your company to hire a new employee, it’s fair to assume you’re looking for nothing short of the perfect match for the job, right?

Well, if you’re on the fence about going through a temp agency, there are some pros and cons to take into consideration that might influence which side of the fence you land. Most employment agencies are great about vetting and providing the perfect candidate, while others miss the mark.

Here are just a few benefits as well as drawbacks when it comes to your company hiring through a temp agency:

The Pros

Considering a temp agency’s purpose is to match employees with employers, it’s sometimes better for companies to hire through an agency rather than advertise positions to the general public and for good reason:

* Avoid Hiring Mistakes – When you hire through a temp agency, your company can rest assured the candidate is not only pre-screened, but tested for the job at hand. This is a great way to avoid poor hiring decisions that ultimately result in lost productivity and wages.

* Eliminate Unemployment Claims – Temporary employees are hired with the full knowledge that their time at your company is short-term. Because of this, your company avoids any unemployment claims that may arise. If you decide to let go of a temporary employee, it’s the temp agency’s responsibility thereafter.

* Reduce Recruiting Efforts – When hiring through a temp agency, the vetting process is done for you. So, instead of wasting time, money, and energy on the legwork that goes along with the recruiting process, your company can cut to the chase with temp employees that are apt for the job.

* Decreased Benefit Costs – Employee benefits cost companies a ton, but with temp employees, your company isn’t required or expected to pay benefits as long as that employee is on a part-time schedule. Likewise, if it’s a full-time position your company needs to fill, consider hiring two temp employees to cover the same job.

The Cons

Before making the decision, there are a couple drawbacks your company needs to consider before going the temp agency route:

* Employee Buyouts – Although finding the perfect fit through a temp agency is a huge benefit, the contract buyout that goes along with hiring that employee full time is a major drawback. And, most temp agencies require a significant buyout depending on the length of the remaining contract.

* Agency Screening – Most temp agencies take the screening process very seriously in order to provide companies with the best possible match. But, unqualified employees sometimes slip through the cracks, especially in the case of larger temp agencies.

* Lack of Strong Relationships – Employers like long-term employees because they are able to form strong relationships with the company as well as other employees. Temporary employees on the other hand don’t have the chance to develop any real relationships. This results in a loss of team spirit and, in some cases, a lack of commitment from the temp employee.

As you can see, weighing the good with the bad is an important step when deciding whether or not to hire through a temp agency.

Photo credit: writeforhr.com

About the Author: Adam Groff is a freelance writer and creator of content. He writes on a variety of topics including personal health, roofing repair, and small business.

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Filed Under: Business Life Tagged With: bc, employees, Hiring, temp agencies

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