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Staffing agency vs. direct hire

If you own your own business or are in charge of hiring, you may have wondered whether you should use a staffing agency to find new employees or if you should hire them directly.

Let’s take a look at some of the pros and cons of using a staffing agency versus a direct hire.

A staffing agency is a company—like LSG Staffing—that helps match an employer to an employee. Sometimes that’s a temporary employee, sometimes it’s temp-to-hire, and sometimes it’s a permanent part time or full time position.

A staffing agency is in business to make money. So they will charge a fee to place an employee in your organization regardless of the specific arrangement.

So won’t you save money by hiring direct? Not necessarily. There are two main factors to consider.

1. Time invested

As the saying goes, time is money. Whether or not you’re an HR professional, you’ll need to decide if the time you’ll spend is worth it. There are a number of tasks you’ll have to take on if you’re doing this yourself.

That includes:

  • Advertising the position
  • Going through resumes
  • Screening applicants
  • Interviewing qualified candidates
  • Performing background checks

That’s a lot of time! Would your business benefit more if you hired that process out?

2. Risk of a bad hire

If the cost of spending your own time on the hiring process doesn’t seem that bad, consider the cost of a bad hire.

Staffing agencies are hiring professionals. They are the experts and are far less likely than you are to make a bad hire. And in the unlikely event that they do make a bad hire, many of them will even offer a guarantee.

So when you are considering whether to use a staffing agency or hire direct, be sure to keep those two factors in mind.

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