6 Ways Staffing Agencies Save Companies Money


When it comes to running a profitable business, everything comes down to the bottom line. To stay in the black, company owners and managers must make smart decisions that help them reduce costs and maximize profits across the board. From finding the best deals on office supplies to limiting the costs of hiring personnel, the most successful businesses are constantly on the lookout for ways to save money.

Personnel costs are by far one of the biggest expenses for businesses today. One way that companies can greatly reduce costs associated with personnel is to work with a staffing or recruitment agency. There are a number of different ways that staffing companies save their clients money from cutting back on overhead to eliminating employee overtime wages.

1. Companies Get an HR Department without the Overhead

Staffing agencies are essentially a devoted human resources team. However, companies that use them save dramatically on overhead costs associated with staffing an in-house HR department. From wages and benefits to office space, supplies, and furniture, businesses can save tens of thousands annually by working with a staffing agency.

2. Companies Get the Right Type of Employee

Not every business needs a full-time, direct hire employee. Some only need part-time, temporary or short-term contract help. By going through a staffing agency, a business can avoid paying for employee services that exceed their actual needs.

3. Companies Can Eliminate Turnover

Recruiters can help businesses find the right person for the job by conducting background checks, pre-employment drug screens, and skills testing to ensure that the best candidate is hired. The high costs of screening and hiring employees make turnover a detriment to a company’s bottom line.

4. Companies Can Reduce the Costs of Training New Staff

By utilizing the staffing agency’s database of skilled candidates, companies can avoid lengthy and expensive training periods for new hires. Instead they can immediately employ contract or temporary employees who already possess the requisite skills and experience to complete the job.

5. Companies Can Reduce the Number of Costly Employee Errors

When current employees are overworked and overstressed due to insufficient staffing, it can cost a company thousands to hundreds of thousands of dollars — maybe even more. Hiring additional staff ensures that employees are able to focus on their essential job duties and eliminates those stressful situations that can lead to errors on the job.

6. Companies Can Avoid Overtime and Benefits Costs

Staffing agencies can save companies a lot of money when it comes to the cost of benefits and overtime. Benefits add up to nearly 25 percent of a company’s payroll expenses, so using a staffing agency for temporary and contract help can help managers minimize or virtually eliminate all of these additional benefit expenses. Overtime costs for current staff can also be minimized by taking on temporary employees during peak seasons.

In today’s slowly recovering economy employees tend to be plentiful, yet business are sometimes hesitant to add additional full-time staff because the costs can be so high. Staffing agencies help bridge this gap by finding qualified workers on an as-needed basis, drastically reducing the financial risks taken on when companies go it alone.