5 Myths About Staffing Agencies

Staffing Agencies

“The key for us, number one, has always been hiring very smart people.”

Bill Gates, Microsoft

If revenue is the blood of business, then people(Human Resource) are the veins which makes sure it reaches the right place at the right time.

In particular, resource allocation plays a crucial role in managing the revenue and maintaining the profit margins consistently high. Regardless of the organisation’s size, Product Managers and Senior Executives always look out for the right candidate to join their team. Their job becomes tougher if they are looking for developers with some rare combination of skill set.

During this time they tend to reach staffing agencies to speed up their hiring process. Since a large amount of stigma is associated with staffing agencies, we wanted to make certain points clear to the people who are planning to hire their next rockstar employee through a staffing agency.

Based on our half a decade long experience we have listed down some myths and ground reality associated with staffing agencies.

1) Staffing companies charge for setting up interviews.

No. There is no point in billing a customer without even looking at a candidate. Few companies may have NDA before setting up such interviews but most of the companies don’t follow this practice.

2) Recruiting industries are expensive.

No. The average charge by a staffing company is 30% on top of the contract rate or the full-time salary. Fee percentage is highly variable based on the technology and the position they are helping to hire. There are companies out there who charge less than 30% for recruitment help.

3) Lack of cultural understanding.

Many managers think staffing agencies don’t know anything about their culture and don’t care about the quality of the candidates.Definitely No. Like most of the business, staff augmentation is a two-way business. Before making the connection every agency runs a self-check internally to make sure that both the customer and the contractor will be happy to know each other. Only if we find it is the right fit, we pass the candidate details.

Every single hire matters. There are exceptions and if something goes in an unexpected way most of the companies offer free replacement for full-time hire if it’s less than 90 days and few are even ready to take down the markup for contract placements.

4) Agencies work for low key profiles.

Another complaint against staffing agency is, we work only for low key skill set requirements. It may be true in some cases, but it’s a false claim because the reason for a technology company reaching out to a staffing agency is to get additional hands and to fill in a role in a short span. From outside it may appear recruitment agencies work for low skill set openings but times are changing. Agencies like us who work with clients to find the best talent in Java, QA, BA to niche skill sets like DevOps, Pentaho, MongoDB. 

5) Staffing companies don’t do retainer engagements.

Absolutely Not. Agencies are ready to assist customers with an internal Human Resource team and can be reached on and off whenever there are new open positions.

Recruiting is an art and like any other business there are innovators in recruiting industry too, but they’re silent speakers. To know more about us and our payment terms visit: www.dckapworkforce.com/about


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