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Have you considered hiring a staffing agency to recruit and vet new hires for your small business?

Staffing agencies are not only available to Fortune 500 companies — small businesses can benefit from them as well. More importantly, there are a number of ways that staffing agencies can assist small business owners in hiring the right talent. Essentially a staffing agency can act as an extension of your existing human resources department. If you are a scrappy startup or micro business, that HR department is usually you.

Outsourcing HR Tasks to Staffing Agencies

Outsourcing your hiring practices can provide a tremendous boost to your productivity and sanity.

Hiring new employees can be overwhelming. However, it is important to keep constant tabs on your staffing needs and the critical positions that need to be filled. Often a new hire does not bring immediate monetary return to small businesses, so it is important to correctly forecast necessary labor costs based on sales projections.

While working with a staffing agency comes with additional overhead costs, in contrast hiring the wrong person can have a lasting impact on company morale, productivity and your bottom line.

Here are a few ways staffing agencies can take the headache out of small business hiring:

1. Find Employees with Specific Talent

While you probably know your industry very well, it may be difficult to understand some of the niche roles that are needed within your company. If you’re not a writer or a designer, you may not know how to attract the right professional to your team.

Staffing agencies can help you identify, qualify and contact talented individuals you may not know how to find independently. A staffing agency can also help you identify candidates and check references of prospective job candidates.

2. Reduce the Cost of Bad Hires

Staffing agencies do represent an added labor cost once you contract their services. However working with a staffing agency could represent a long-term quality decision.

For instance, using a staffing agency can drastically reduce your chances of making the wrong hire. The Department of Labor estimates the cost of replacing a single employee to be one-third of their salary.

Additionally, hiring the wrong employee and fixing the mistake within 6 months can cost as much as 2.5 times the person’s salary. Even at $40,000 a year, that is a $120,000 mistake — including their salary.

Why not do it right the first time, instead?

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