what are the pros and cons of working with different types of staffing companies?

what are the pros and cons of working with different types of staffing companies?

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Not all staffing companies are created equal, and the differences between them can translate to bottom-line impact for your business. Read on to understand the pros and cons of each type of staffing company — and be sure to check out our comprehensive guide for more insight into the different types of staffing firms.

temp firms

Pros

  • Temporary staffing firms are a great short-term solution for companies that face seasonal or cyclical spikes in demand.
  • These firms can help companies reduce time-to-fill without significantly increasing HR costs.
  • In industries and fields that are heavily reliant on temp talent — like manufacturing and logistics, finance and accounting and office and administration — these firms generally have deep pools of candidates ready to deploy on demand.

Cons

  • Temp firms focus on temporary talent, so they're less likely to be able to find great permanent candidates when working with this type of staffing firm.
  • These firms may not be able to source for culture fit — or for any of the other intangibles that go into a great hire. 

 

full-service staffing firms

Pros

  • Full-service staffing firms are versatile, with the ability to scale up or down in response to fluctuations in business needs.
  • These firms can deliver temporary, temp-to-hire or full-time talent on demand for nearly any role.
  • Many of these firms offer tech solutions that can speed up the hiring process and save costs. 

Cons

  • Because of their size, these firms may not be the best option for small businesses or companies with one-off talent requests.

retained search and executive search firms

Pros

  • Retained search and executive search firms often have a strong foothold with "passive talent," so they're an excellent choice for companies looking to fill key senior- and executive-level vacancies.
  • By forming long-term partnerships with hiring companies, retained search and executive search firms can source candidates who are well-suited to meet not only specific job requirements, but also intangibles like team dynamics and workplace culture.

Cons

  • Retained search and executive search firms source higher-compensated, senior-level employees, meaning that companies with talent needs lower on the org chart — or simply have a variety of different talent needs — should seek solutions elsewhere.
  • These firms probably won't be able to deliver on the full range of talent needs for growing companies that are looking to scale.

boutique or niche staffing firms

Pros

  • Boutique or niche staffing firms are great for sourcing niche technical talent such as data scientists, software engineers and programmers.

Cons

  • Most of the successful boutique or niche staffing firms have amassed concentrated talent pools within specific regions, like Boston or San Francisco, so they're not a good match for companies with large-scale or multi-site talent needs.
  • These firms seldom give companies a variety of choices when it comes to hiring models, in part because most of them allow candidates to choose their own hiring model — and few opt for "temp."
  • While these firms are great for sourcing niche technical talent or filling highly skilled roles, their lack of versatility means they won't be able to cover the full range of hiring needs at most mid- to large-size companies.

Now that you understand the pros and cons of working with different types of staffing agencies, you should feel empowered to evaluate potential partners — and find the one that has capabilities most aligned to your needs. Just make sure you know the essential questions to ask a potential partner, as well as the many different billing models in the world of staffing.  

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what are the pros and cons of working with different types of staffing companies?

Posted by Amy Tarkington on Feb 11, 2019 12:45:07 PM

Not all staffing companies are created equal, and the differences between them can translate to bottom-line impact for your business. Read on to understand the pros and cons of each type of staffing company — and be sure to check out our comprehensive guide for more insight into the different types of staffing firms.

temp firms

Pros

  • Temporary staffing firms are a great short-term solution for companies that face seasonal or cyclical spikes in demand.
  • These firms can help companies reduce time-to-fill without significantly increasing HR costs.
  • In industries and fields that are heavily reliant on temp talent — like manufacturing and logistics, finance and accounting and office and administration — these firms generally have deep pools of candidates ready to deploy on demand.

Cons

  • Temp firms focus on temporary talent, so they're less likely to be able to find great permanent candidates when working with this type of staffing firm.
  • These firms may not be able to source for culture fit — or for any of the other intangibles that go into a great hire. 

 

full-service staffing firms

Pros

  • Full-service staffing firms are versatile, with the ability to scale up or down in response to fluctuations in business needs.
  • These firms can deliver temporary, temp-to-hire or full-time talent on demand for nearly any role.
  • Many of these firms offer tech solutions that can speed up the hiring process and save costs. 

Cons

  • Because of their size, these firms may not be the best option for small businesses or companies with one-off talent requests.

retained search and executive search firms

Pros

  • Retained search and executive search firms often have a strong foothold with "passive talent," so they're an excellent choice for companies looking to fill key senior- and executive-level vacancies.
  • By forming long-term partnerships with hiring companies, retained search and executive search firms can source candidates who are well-suited to meet not only specific job requirements, but also intangibles like team dynamics and workplace culture.

Cons

  • Retained search and executive search firms source higher-compensated, senior-level employees, meaning that companies with talent needs lower on the org chart — or simply have a variety of different talent needs — should seek solutions elsewhere.
  • These firms probably won't be able to deliver on the full range of talent needs for growing companies that are looking to scale.

boutique or niche staffing firms

Pros

  • Boutique or niche staffing firms are great for sourcing niche technical talent such as data scientists, software engineers and programmers.

Cons

  • Most of the successful boutique or niche staffing firms have amassed concentrated talent pools within specific regions, like Boston or San Francisco, so they're not a good match for companies with large-scale or multi-site talent needs.
  • These firms seldom give companies a variety of choices when it comes to hiring models, in part because most of them allow candidates to choose their own hiring model — and few opt for "temp."
  • While these firms are great for sourcing niche technical talent or filling highly skilled roles, their lack of versatility means they won't be able to cover the full range of hiring needs at most mid- to large-size companies.

Now that you understand the pros and cons of working with different types of staffing agencies, you should feel empowered to evaluate potential partners — and find the one that has capabilities most aligned to your needs. Just make sure you know the essential questions to ask a potential partner, as well as the many different billing models in the world of staffing.  

Topics: topic:what is it, phase:awareness, industry:all, topic:faqs