A growing number of companies are turning to staffing agencies at an unprecedented rate, enabling them to tap into skilled contingent workers, overcome industry talent shortages, establish adaptable workforces, and cut costs. In this article, we look at the five key tips when choosing the right staffing agency for your company's contingent workforce needs.
According to a recent survey by Gartner, 32 percent of organizations are opting for contingent workers over full-time employees to save costs. The report highlights that incorporating more gig workers offers employers enhanced flexibility in managing their workforce effectively.
Entrusting your staffing needs to an external partner can be a pivotal decision. The quality of your company is intricately tied to its workforce, making it essential to select a staffing agency capable of placing the right contingent workers in the appropriate roles, at the precise time and cost. This underscores the importance of taking proactive measures to understand the services and value your chosen staffing agency will deliver.
Wondering how to assess staffing agencies and select the perfect fit for your business's specific staffing needs? Here are five key tips from Conexis VMS to aid you in choosing the right staffing agency for your company:
1- Begin by outlining your staffing needs
The initial step in selecting the ideal staffing agency is to internally outline your company's requirements for non-employee staffing. Do you require short-term assistance to adjust to fluctuating seasonal demands? Are you seeking specific expertise or skills to ensure project completion on time?
It is crucial to communicate your staffing needs clearly to the agency in order to properly evaluate how they align with your business and how effectively they can work with your company.
2- Is the staffing agency experienced in your industry?
Any staffing agency that you choose to work with should have experience working in your company’s specific industry. This will ensure the staffing agency has a better understanding of what your business needs to fulfill its workforce targets, as well as having better access to talented and experienced contingent workers.
Staffing agencies should be able to provide referrals to companies that ask. Contacting these referrals will give you some first-hand insights and opinions from businesses that have previously worked with the vendor - although keep in mind that agencies will only ever provide you with referrals who were happy with their service, not the ones that weren’t.
3- What expenses are factored into their bill rate?
The markups charged by staffing agencies can vary significantly, so it's crucial for your business to grasp the precise costs included in the stated bill rate before entering into a partnership. Take the time to understand the breakdown of how much of the bill rate goes to the worker, the portion allocated for government fees, and the percentage retained by the agency.
4- What is the vendor's response time?
A key factor driving businesses to utilize contingent workers is the need for agile workforces that can swiftly adjust to fluctuating demands. It is crucial to partner with a staffing agency that prioritizes rapid response times, ensuring they can address your inquiries within hours, not days. Choose a vendor that is highly responsive and adaptable to meet your business needs effectively.
5- Ensure effective management of the staffing agencies you select by utilizing a Vendor Management System (VMS).
Once you have identified the agencies to fulfill your non-employee staffing needs, it is essential to track and analyze their performance. Avoid inefficient manual methods like spreadsheets or in-house databases, and opt for a VMS to streamline and centralize your vendor management. This approach will enable you to monitor and evaluate vendor performance against key metrics such as time-to-fill and turnover, ensuring they align with your contingent workforce goals and budgetary constraints.
Interested in learning more about Vendor Management Systems?
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