Why Temporary Placement Agencies Will Fail Your Business [2 HONEST Truths!]
Are you a business that uses Temporary Placement Agencies? Perhaps you are thinking about using Temporary Placement Agencies. Working with Temporary Staffing Agencies can be a hit or miss. Of course, it depends on what type of business you have. In addition, it depends on what type of growth you expect from your business. Considering the pros and cons of using a Temporary Staffing Agency, we suggest not using Temporary Placement Agencies. Instead, partner with a Staffing Agency with a focus on Permanent placements, such as Elite Jobs. Ultimately, sooner or later, they will fail your business in long term growth. Take it from a Recruitment Professional who has witnessed the downfall of various Agencies in the past, and how it hindered their clients as well.
2 Truths to Temporary Placement Agencies
2 truths as to why temporary placement agencies will fail your business are:
- They Provide Temporary Workers
- Have Poor Internal Agency Structure
Temporary Placement Agencies Provide Temporary Workers
Firstly, expect temporary workers from Temporary Placement Agencies. It is a rare occurrence that temporary workers have a “full- time” mentality. I am not discrediting those who are truly working hard to turn full time. Temporary workers are aware that it takes about 1 year to get hired on full- time. Because of this, the temporary worker pool mainly consists of individuals who are not looking for long term employment. I believe all workers should have access to permanent work, without the stipulations. If you are an employee looking for a permanent job, check out our job board and apply! All of our positions are Permanent.
No Job Security
It is not fair for workers who are looking for long term employment to work hard without job security. Temporary workers have the fear that they may lose their job with little notice. Additionally, many Temporary Workers are employed with no intention of being offered full time employment. It is the harsh truth and reality. Some Temporary Workers are used by Temporary Agencies as “fillers”. Using Elite Jobs’ services will allow employees to work directly through the company they are hired with, not the agency. This means employees are able to work with job security and without fear.
In addition, our services allow businesses to measure the employee’s performance within their probation period respectively. We offer solutions that assist you in determining whether the employee is a fit on the job. Additionally, We are responsible in finding you employees who are looking for long term growth. We don’t offer any employees who don’t share the same mindset.
It is common practice for a temporary placement agency to charge an added fee on top of each worker’s hourly rate. These fees are costly, especially for the service that you are receiving. Elite Jobs does not believe in this payment model. We charge the most competitive flat fees and rates on the market. If you currently are a business using an Agency, Elite Jobs will beat the rate!
Also, we believe that every employee should be paid fairly for their work. Some Temporary Agency practices “shave off” hourly pay from Temporary Workers. This practice is heavily frowned upon here at the Elite Jobs Team, as it is simply unjust. I have witnessed Temporary Agencies deliberately withhold vacation pay from Workers simply because they did not know that they were entitled to it once employment with the Agency ends. Management would advise their Recruiters that if Temporary Workers did not ask to withdraw their accrued vacation pay, Recruiters should not mention it. The accrued vacation pay pool would be promised to the Recruitment team as a yearly bonus (which never was received). These types of business behaviors from Management sets the tone for serious concern. As a business, how can you trust a Temporary Agency that sneakily steals from their own Workers?
Also, you are paying for quantity when using a temporary placement agency. Temporary placement agencies are capable of providing large amounts of workers at a time. This means that the workers that you are getting are not always the workers that you are looking for.
Direct Hire Assistance Through Temporary Placement Agencies
Well what if I am a business that asks a temporary placement agency to find me a direct hire? The article advises against this for two reasons:
- Little time for refined search
- Rate is too high
Little Time for Refined Search
Firstly, recruiters are preoccupied with providing bulk temporary workers to companies. Because of this, they have little time to refine a search for the candidates you are looking for. That is of course, if the agency has recruiters that purely recruit for direct hire orders. There are very little to no agencies that do this.
Permanent Placements Through Elite Jobs
On the other hand, Elite Jobs guarantees a concise search with every candidate based on your business requirements. The Elite Jobs Team also accepts a limited amount of clients per industry, in order to maximize quality candidates. Elite Jobs believes in a company focused approach in order to provide the best search possible.
Lastly, a temporary placement agency has high rates. This applies both for temporary and permanent placement services. Prior to going into business with an agency, make sure you are okay with the rates. Elite Jobs advises to compare rates and offers with other Agencies.
Elite Jobs Rates and Flat Fees
Temporary Placement Agencies Have Poor Internal Agency Structure
Secondly, poor internal agency structure does not allow the agency to grow with your company. Poor internal agency structure refers to:
- Overworked recruiters
- Poor management
- High recruiter turnover
Firstly, recruiters are almost always overworked in an agency. The demand from management to recruit in a fast paced environment, creates burned out employees. This is because recruiters barely get time to take a proper break. Recruiters typically eat at their desks. Even though legally you are allowed to take a break, the environment suppresses you to take breaks. In addition, there have been times where recruiters were told to cut their breaks.
After Hours Expectation
Recruiters are also overworked due to after hours expectations. Almost every agency expect their recruiters to work after hours. This is in the case a client or employee needs assistance. After hours standards usually include holidays that employees typical would not work. This causes recruiters to stress and under perform at work. In conclusion, working hours become unrealistic.
Poor Management in Temporary Placement Agencies
Secondly, poor management causes agencies to fail. Which results in your business failing. Upper management in temporary placement agencies place priority on financial gain. However, the way the expectation is placed on recruiters to achieve quotas is not fair. In many cases, there is no open door policy between management and recruiters. Lack of support, unrealistic expectations, and scare tactics drive valuable recruiters away. Lastly, recruiters are not being rewarded fairly based on their hard work and dedication to temporary placement agencies.
High Recruiter Turnover in Temporary Placement Agencies
This results in a high recruiter turnover. This is an indication that there is no room for growth. Recruiters begin to feel undervalued. In order for recruiters to stay with a company, there needs to be work/ life balance. With a high recruiter turnover, the service that the agency provides is not satisfactory. This is because agencies will begin to hire junior recruiters with under- qualifications. This is an attempt to mask the high turnover within the agency. Inconsistency in service is not recommended for business growth.
In conclusion, using temporary placement agencies will fail your business in long term growth. This is because:
- They Provide Temporary Workers
- Have Poor Internal Agency Structure
Temporary placement agencies and their practices are out of date. Work with Permanent Recruitment Agencies, such as Elite Jobs. Their recruitment strategies help you grow your business long term. Elite Jobs can guarantee quality workers. In addition, the Elite Jobs can also guarantee a team that keeps your business as their focus.
Do you have a workplace related question? Ask Elite Jobs in the comments section below.