Companies engage temporary staffing agencies primarily to reduce the hassles and risks while hiring temp staff or contractual employees. Apart from making a trained workforce available quickly, staffing agencies are also responsible for managing temporary workers contracts and payments, thus taking the load off the companys shoulders.
Currently, India has over 1.3 million temporary workers in different sectors. By the next five years, about 10% of the overall workforce is expected to work in contingency under such staffing agencies. Hence, it is no big surprise that these agencies are integral to organisational success.
Whether you need temporary workers for a definite project immediately, or you are looking for a specific skill set for addressing the holiday season rush, temporary staffing agencies come of great help. These are quick to adapt to internal policy changes and enable the flexibility of temporary recruitment. With the help of their vast network, robust processes, and capabilities, the staffing agencies can fulfil hiring requirements faster.
But what if your temporary staffing agency is not up to the mark? The following signs will tell!
Delays in filling positions
The primary duty of a temporary staffing agency is filling positions faster. Companies depend on it to find temporary workers for urgent, short-term projects. The agency is also expected to have an extensive network of such employees, ready to get hired immediately. Further, it may take time to train the hired workers according to project requisites. Hence, if it fails to meet the companys expectations within a definite timeframe, its a drawback.
As a business owner, delays in finding the right professionals may even cost you the entire project. Besides, the financial losses that you have to endure add up to the failure. So, if your temporary staffing agency is letting you down repeatedly, you may need to consider looking for other options.
Costs of recruitment are higher
Hiring temporary workers is not cost-intensive, but the other way round. Most of the time, business owners turn to temp staff to save hiring costs, and the staffing agencies make that possible. Long-term commitments may not be an option for small business owners or startups with budget restraints. Even larger enterprises may think of cutting down investment by hiring temporary workers wherever possible.
Now, how can staffing agencies help reduce overhead costs? Well, they eliminate the need to advertise for suitable candidates by using their network instead. The agencies also lower the companys turnovers cost and prevent unsuitable hires from cutting into the revenue. A bad hire not only disturbs internal work balance but also adds to the waste of resources. Appointing staffing agencies may minimise the chances of such instances. By offering free resources and training opportunities, they further reduce the expenses of the employer. Despite engaging a staffing agency, if you are incurring these direct/ indirect costs, then you have something to worry about.
Apart from that, you can also negotiate the commission rates with the agency. Based on your requirements, instead of paying the industry standard rate of 8-10%, you should be able to find staffing agencies that offer stellar services at as low as 3-5%.
Labour laws keep changing from time to time. For example, the 2020 update has merged several labour laws into four codes that have changed the definition of employees. Managing the unorganised workforce can be tricky in the following days, as gig workers get included in the broader definition of employees. Apart from this, following social security and occupational health and safety regulations will be mandatory, even for temporary workers.
The staffing agencies should be aware of such updates and hire accordingly to prevent violations. They also need to ensure payroll compliance regarding minimum wage requirements, EPF and insurance, gratuity and tax benefits on behalf of the company. If they fail to do so, compliance issues may arise that have severe consequences. The business owners may even get sued or penalised. Hence, if your temporary staffing agency is unable to fulfil these responsibilities, you may need to switch.
Wrapping it up
The job of a temporary staffing agency is not confined to hiring contractual workers anymore. It should ensure minimum hiring costs and faster recruitment by using reliable sources and an extensive network. On top of that, the agencies need to stay updated with the current and upcoming labour laws to ensure compliance. In other words, they should ensure timely, and quality hires for short-term projects without exceeding the budget of the employer.
If youre a business owner planning to hire short-term workers, it is advised not to settle for anything less. And if your temporary staffing agency fails to meet these requirements, find the one that can, without any hesitance.