Why Employers Shouldn't Choose the Cheapest Staffing Firm

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11 Jan 2022
5 min read

If you’re an employer thinking about using a staffing firm, good for you! Professional staffing agencies are able to delve into your needs and send one of their many well-qualified candidates to you fast. Staffing firms can ease the burden of filling your open positions. They are time-saving, cost-effective ways of getting your positions filled successfully. 

When you’re looking at staffing companies, you may initially be surprised by what they charge. It can seem expensive and cost-prohibitive to your business and the price tag might tempt you to just go with the firm who charges the least. 

Don’t fall into that trap. 

Staffing firms are NOT all the same. They offer different services and frankly some are much better than the others. YOU GET WHAT YOU PAY FOR. Here are some big reasons to not choose your staffing firm based on price.. 

Money Buys Experience

It takes years to understand the recruiting and staffing process the way firms should. Finding and managing candidates, matching them to the right positions, and doing it within their clients’ timeline take considerable expertise. 

Staffing firms that offer highly-experienced recruiters are usually more expensive. Cheaper firms tend to have greener recruiters who aren’t as knowledgeable about matching the right candidate with the role. Plus, they aren’t as savvy at communicating with employers and understanding their specific needs. 

Results of the “cheaper choice”: Using a less experienced firm can result in candidates that don’t fit your roles, communication issues, and a longer time-to-fill. 

Related Article: 5 Questions to Ask a Staffing Firm Before Hiring Them

Seasoned Staffers Have a Better Chance of Successfully Placing Candidates

Veteran recruiters have tons of contacts in their network they’ve built from their years of placing candidates. They know passive job seekers who, while not actively looking for a job, would be all in for a position that advances their career. They know the inside scoop about the candidates they are connected to and are market experts. Cheaper staffing firms may not have as deep a pool of candidates, because they haven’t spent the time and resources building and maintaining their contacts. They may be more of a “reactive” staffing agency scrambling to find candidates for your open position. 

Results of the “cheaper choice”: Staffing firms can save money by sending you an average candidate they already know rather than using their resources to find the perfect one for your role. This candidate may not have the education, skills, and experience you need for the position you're trying to fill.

Related Article: Costly Mistakes Companies Must Avoid During the Hiring Process

They Offer a More In-Depth Vetting Candidate Vetting Process

It’s vital that businesses do everything they can to keep their workplace safe. New employees who aren’t properly screened can be toxic to your other employees, your vendors, customers, and reputation. Some staffing companies may cut corners on properly vetting, screening and even knowing who their candidates are. They may have spoken to a candidate over the phone for 10 minutes before presenting them to you for consideration! Additionally, they may have also skipped certain important processes such as reference checks, running background checks, education and employment verifications. 

Results of the “cheaper choice”: Skipping, or doing the “bare bones” of vetting, can negatively affect your workplace. The employee may be unqualified for the role, mess it up, and cause costly issues. They may also be downright dangerous to have on your payroll. 

Less Chance of “Extra Fees” Added On

Too good to be true pricing probably is! When you’re using a staffing firm for the first time, or switching from the one you currently use, keep in mind that some companies aren’t transparent about their pricing. 

If the staffing firm’s pricing is low, dig further to see if they add on extra fees throughout the process. These fees, after all, can end up making you pay more overall per candidate than other firms that looked more expensive on the front end. Cheaper pricing could also translate to the wrong candidate and ultimately a replacement within the first year. This could mean paying a fee twice before you find the right candidate to join your team for the long term.

Results of the “cheaper choice”: You could end up paying more in extra fees and sneaky add-on charges with firms that aren’t transparent about their pricing. 

Conclusion: You Get What You Pay for

We all love the idea of a good deal. What we don’t love is the consequences that a “good deal” may cause. How many times have we decided to go the cheaper route only to realize the importance of QUALITY! Choosing your staffing firm based on the cheapest price may, unfortunately, end up being one of those costly learning lessons. 

Being smart about choosing your staffing vendor, and all vendors, is just good business. However, that doesn’t mean automatically picking the cheapest price because it’s going to save money. Chances are good that going with the least expensive vendor WON’T save you money, and may cause you greater headaches with filling your open roles than if you chose a more experienced vendor with transparent pricing. 

When you’re choosing a staffing firm, weigh their experience, their candidate pool, vetting process, and documented time-to-fill positions along with their price. And make certain you understand their fees and don’t get blindsided by extra charges. If you do this, you’ll undoubtedly choose a professional firm that provides you great service, and candidates that will make a positive contribution to your business.

And that, folks, is priceless.

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