In the news

Staffing firms that know your industry make better partners

Jacksonville Business Journal - January 11, 2008
by Dolly Penland

The staffing industry continues to get bigger each year. In fact, employment through such companies grew to 3.1 million jobs in the third quarter of 2007, according to the American Staffing Association. That's 2.3 percent higher than in the third quarter of 2006.

The National Association of Personnel Services also reports that staffing, personnel services and employment companies in the U.S. boast total annual revenue of nearly $75 billion.

Staffing companies offer more than temporary and contract staffing services. Many also recruit permanent talent, outsource projects and consult on human resource issues for smaller clients without a human resources department.

As the work force grays and begins to retire, the importance of using a quality staffing company will grow.

"We're facing the reality that the best companies are only going to remain the best if they attract, hire and retain the best people," said Conrad Taylor, president of NAPS. "As baby boomers retire, companies are going to increasingly compete for the best talent. There's going to be a shortage -- more jobs than bodies."

Choosing a permanent or temporary employment agency essentially means choosing a business partner.

"First, look for reputation. What are other people saying about that staffing company? Do they consistently deliver on their promises? Get references and check them," said Clint Drawdy, president of Jacksonville-based Hire Methods, parent company of iMethods, a technical staffing agency and Medical Methods, a medical staffing agency. "Our industry is wrought with staffing companies that are transactional. That means they get a job and try to fill it with anyone versus a good quality company that says, 'Can I see your facilities, understand the type of [corporate] culture you have and what skills you need filled,' and really understand the needs of the client before making a match."

This is crucial because of the variety of jobs filled by the industry. Employment agencies place people in jobs ranging from day laborers and office workers to engineers and CEOs.

"About 12 million Americans will work at some point during the course of the year as a temporary or contract employee," said Richard Wahlquist, ASA president and CEO. "You need to choose a staffing firm that specializes in your industry or type of operation."

Before approaching a staffing company, business owners must determine whether the position is going to be a short-term or long-term assignment, whether it's a temporary-to-permanent position or whether the agency is simply gathering and narrowing a pool of qualified candidates for a job, with the business making the selection.

"Business owners say, 'My most important assets are my people,' " Wahlquist said. "Many companies are using staffing firms not only to source part-time, temporary and project-specific talent, but also to source their full-time needs and audition talent to make sure it's a good fit. And for the people who work as temporary and contract employees, it's an opportunity to showcase their skills and audition for future employers."

Making sure an employee fits the corporate culture before a permanent hire can also help a company eliminate the risk of a bad hire.

The best way to avoid that, said Peter Felix, president of the Association of Executive Search Consultants, is to consider what the business expects of the employment agency, have clear guidelines on which candidates are suitable and make sure those candidates understand the nature of the position.

"You need to know why you're calling the consultant," Felix said. "The consultant will help you focus, act as a sounding board and counselor in fine-tuning the need" -- that is, filling the right position with the right person.

NAPS reports that there are more than 30,000 staffing, personnel services and employment companies around the country, from small, specialized agencies to large, global companies. That means businesses have many choices.

It's a good idea to shop around for and interview an employment agency. Ask lots of questions -- about everything from fees to the turnover rate of the employees placed by the agency.

"Ask about what metrics they use to track quality. The reality is very few track quality. Do they even know how to measure quality?" Drawdy said. "Our company [tracks] how often we meet the expectations and the requirements set forth."

Ask for a list of client references and call those companies before selecting an employment agency. Wahlquist recommended not selecting an agency based solely on price. "You get what you pay for," he said.

Once a company selects an agency, representatives of the agency should learn as much about the company as possible.

The employment agency is working on behalf of the client to present the best case in the marketing of his company or organization to potential employees, Felix said. "Recruiting is partly about marketing and communications."

If a potential recruit says, "I'm already a successful CEO, so why join your company?" the agency must be able to say, "Here are the reasons."

"It's proactive," Felix said.