The role of staffing agencies on small business enterprises

Staffing agencies are now an important part of recruitment process not only for large-scale business enterprises or for Multinational Corporations but are also playing an important role in the providing qualified and qualitative personnel to small and medium sized business enterprises. Staffing agencies are helping and assisting small businesses in hiring the right talent and are acting as an extension of their existing human resources department. Now small businesses are outsourcing their hiring practices to staffing agencies thereby boosting their productivity and goodwill within their respective business sectors. By hiring the services of staffing agencies, small businesses are able to keep constant tabs on their staffing needs and the critical positions that need to be filled up.

The following advantages are being derived by small business enterprises by hiring the services of staffing agencies and these are:

1. Finding employees with specific talent: Staffing agencies are helping small business enterprises in identifying, qualifying and contacting talented candidates as the prospective employees of the concerned business enterprises. Staffing agencies are also helping in identifying candidates and checking the references of prospective job candidates.

2. Reduce the cost of bad hires: Recruitment costs pose a major financial burden to small business enterprises and are an added labor cost once the concerned enterprise contracts their (candidates/labor) services. Staffing agencies are helping in drastically reducing the chances of making wrong hires by their client business enterprises. It is estimated that the cost of hiring a wrong employee and fixing the mistake within six months can cost as much as 21/2 times of the concerned person’s salary.

3. Saves time: Small business enterprises are saving lot of time by hiring the services of staffing agencies that specializes in their respective sectors. The concerned staffing agencies are taking the burden of employee recruitment on their shoulders thereby giving enough time for small business enterprises to concentrate on their core business activities.

4. Benefits of motivated job search: Small business enterprises are reaping the benefits of motivated job search of the concerned staffing agencies because staffing agencies do not suffer from lack of motivation or time. These staffing firms are only concerned with competing with their reputation by eliminating unqualified job candidates for the benefit of their client business enterprises. Thus, it can be said that staffing agencies are playing an important role in providing staffing services to small business enterprises.