The major problems faced by temporary staffing agencies

Temporary staffing agencies are those staffing firms that provide staffing solutions to their client’s personnel problems by providing a short-term work force consisting of skilled workers or employees that are available at a short notice. The temporary staffing agencies are helping organizations in filling up their vacant job positions for a day or couple of weeks when the permanent employee is on sick leave or on vacation. The positions may remain vacant even for a longer period such as training or maternity leave where the actual employee intends to return and the company trying to preserve the position without losing productivity.

The temporary staffing agencies do face problems when placing temporary workers or employees as per their client’s directions and requirements. The main three problems or obstacles include the following ones that are explained below for the benefit of readers.

1.  Dishonesty of the applicant: The one major hurdle faced by temporary staffing agency is about some of the applicants/candidates dishonesty who in their desperation to get the job may lie about their skills and experience hoping to put them on a higher pay scale or on the top of the talent list. If overlooked, the temporary agency’s reputation is tarnished if the client company or the employer gets inferior or less skilled/qualified candidate as their employee. Therefore, temporary agencies must look beyond conducting an interview to confirm the skills and experience of the applicants by conducting certain tests and validating the work history of the concerned applicants in advance before sending them to be hired by their client company.

2. Pool of talent: Studies reveal that about 20 percent of the employers rely on the talents and services of temporary workers or employees being provided by the temporary staffing agency. Therefore, these temporary staffing agencies are required to maintain a large talent pool to serve the staffing needs within its demographic area but finding talented workers is difficult forcing these staffing agencies to focus on volume rather than on high quality employees.

3. Competitive rates: Like any other service sector, temporary staffing agencies charge a fee to employers for the services they provide in order to stay in the business. This fee usually covers the human resources cost, and other office expenses but those temporary staffing agencies that have higher overheads to maintain higher quality talent pool may lose company clients to their competitors who charge less fees. The loss of clients may lead to loss of talent as people move to other agencies that provide them more jobs. Therefore, temporary agencies are required to be aware of the economic trends and be willing to negotiate fees with clients to retain long-term relationship.  

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