The relationship of staffing firms with their clients

Staffing firms are facing tough situations these days when it comes to providing client services. On one hand, the staffing industry’s recent share of overall employment has hit record high levels on the other hand; the industry is facing low and decreasing candidate satisfaction. Client satisfaction among the staffing firms was in decline for the fourth straight year in 2013 as per the Inavero “Best of” competitions for exceptional services survey. Even more disturbing factor is that the number of clients who does not view their staffing agency or firm as a strategic partner is up by 50%.

The relationship between staffing firms and their clients is a two way street with each party seeking partnership and providing honest communication for the betterment of their partnership. Moreover, clients expect this from their staff providers as they do for any other business relationship. There is a difference between a client needing the services of a staffing firm and one wanting to collaborate with the concerned firm and this factor should be taken care of by the organizations while outsourcing their specialty areas of the business to the staffing experts to bring in efficiency and cost effectiveness.

It is essential for staffing firms take measures to shield its clients from risks associated or related to contingent workforce. For instance, the staffing firm and the client can do or perform the three minimum lists of things to avoid difficult situations or hung over as mentioned herein below.

  1. Establish a service agreement that helps in simplifying the business relationship between the client and the concerned staffing firm to avoid co-employment issues.
  2. The client should make clear that staffing firm is acting as Employer of Record for all of its employees stationed on the concerned client’s work location or venue for doing temporary tasks delegated by the client. This will help the staffing firm to assume the principal legal relationship with the worker and responsibility for worker classification and governmental income reporting or withholding.
  3. Maintain equality across the board pertaining to selection criterion so that both the client and the staffing firm duly adhere to different types of labor laws and regulations.

For staffing firm, it is important to not only to discuss about their services with the client, but also discover how their services can meet the needs of their clients by adhering to constructive conversation with their respective clients.