Staffing agencies often have a poor reputation from a few myths and bad apples that take advantage of their clients. In reality, genuine staffing agencies are the secret weapon to helping employers and job seekers. 

We function on a surprisingly simple yet powerful model: Imagine a bridge – on one side, companies with open positions but limited time or resources to find the perfect fit. On the other side, skilled professionals who are searching for the right opportunity. Staffing agencies are the bridge itself, aligning talent with the perfect position. So how do we get paid for this work? And what are the actual cost-benefits for staffing agencies?

While some fees are associated with these valuable services, the benefits for both businesses and job seekers far outweigh the costs. So, how exactly do staffing agencies create a win-win situation for everyone involved? Let’s dive deeper into how staffing agencies charge for their services. 

The Need For Staffing Agencies 

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The job market has seen challenges throughout the years, with changing employment rates and the constantly evolving skill sets required to stay competitive. Businesses often struggle to find and retain qualified talent. This is where staffing agencies are crucial.

Serving as a bridge between businesses and potential employees, staffing agencies provide a variety of services to meet the unique needs of both parties. One key service is our ability to fill talent gaps quickly. The process of finding the right person for a job can be time-consuming, but staffing agencies counter this with their pre-vetted candidates, enabling businesses to fill open positions swiftly and efficiently. 

Additionally, we often specialize in certain fields that require specialized skills or certifications, allowing us to attract top talent in those fields. The recruitment process can be costly, but staffing agencies mitigate many of the upfront costs associated with sourcing qualified candidates, thus saving businesses both time and money. They also offer flexible solutions to cater to the needs of businesses, such as providing temporary workers for short-term projects or contract-to-hire options for long-term requirements. Beyond serving businesses, staffing agencies also benefit job seekers by providing access to a wider range of opportunities and offering valuable interview and resume guidance.

How Do Staffing Agencies Get Paid? 

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Staffing agencies generate their revenue from the fees they charge to companies for finding suitable candidates. Additionally, a reputable staffing agency never charges a fee to job seekers. Typically, a staffing agency’s fee is based on a percentage of the hired employee’s compensation. This fee covers the costs associated with recruiting, vetting candidates, and managing the placement process. 

While this may appear as an extra cost for the hiring company, it can be a more cost-effective solution than the resources needed for comprehensive in-house recruitment. When considering the fully loaded cost of hiring new employees, the markup charged by staffing agencies is often less than a company might pay if they advertised, searched, screened, interviewed, and hired directly. In most cases, the fee is only paid if the employee is hired, limiting hiring risks. In addition, staffing agencies offer flexibility, enabling companies to adjust their workforce based on changing business conditions without incurring long-term commitments. 

The Difference Between Pay Rate and Bill Rate

Understanding the concepts of “pay rate” and “bill rate” is crucial for both clients and employees working with staffing agencies. These terms define how agencies operate, affecting profitability, employee compensation, and client costs. Let’s break down these concepts for clarity:

  • Pay Rate: The “pay rate” is what the staffing agency pays to the employee for their work. This rate is usually an hourly wage. For job seekers, the pay rate represents their earnings before taxes and any other deductions. Employees need to understand their pay rate as it reflects their direct compensation for their work.
  • Bill Rate: On the other hand, the “bill rate” is the amount the staffing agency charges an employer for the services provided by the employee. The bill rate is higher than the pay rate, as it represents the total cost of the staffing agency’s services, which includes the pay rate, payroll taxes, worker’s compensation expenses, in addition to covering the agency’s costs to source, screen, interview, and conduct background checks.

If you want to learn more about how Staffing Support Specialists charge for their services, please visit our services page to get a more detailed breakdown

The Value of Staffing Agencies for Employers & Job Seekers 

Staffing Support Specialists benefit both the employer and prospective employee in the following ways: 

The Value for Employers 

  • Access Pool of Pre-Qualified Candidates: Staffing agencies have an extensive database of candidates from various backgrounds. This allows them to match employers with individuals who possess the right skills and experience, promoting cohesion and inclusivity in the workplace. 
  • Cost-Effectiveness: As an employer, partnering with a staffing agency can significantly reduce the time and resources spent on the recruitment process. Agencies streamline candidate sourcing, screening, and interviewing, allowing businesses to focus on their core activities.
  • Specialist Expertise: Many staffing agencies concentrate on particular industries. Our specialization helps us understand the specific and unique requirements of certain roles and identify candidates who possess those necessary skills. 
  • Reduced Risk: Staffing agencies often take on the task of making sure candidates are a good match, especially for temporary or contract jobs. This reduces the risk for the hiring company and makes sure the chosen candidate is suitable for the job.

The Value for Job Seekers 

  • Connection to More Job Opportunities: Looking for a job can be overwhelming: how do you know if you’re qualified? How do you compare companies? How do you get interviews quickly? A staffing agency is a one-stop shop where placement specialists are there to help you every step of the way. 
  • Resume Writing & Interview Support: Staffing agencies do a great job of helping you prepare for interviews, which includes revamping resumes. 
  • Career Guidance & Coaching: While not all staffing agencies offer this service, career guidance and coaching may be available if you are unsure of your next steps.
  • Streamlined Application & Interview Process: At Staffing Support Specialists, you can complete an online application and have an interview on the very same day! Our streamlined interview process ensures that you aren’t waiting longer than 48 hours to receive an interview spot, depending on job availability.

Services Offered by Staffing Support Specialists 

Here at Staffing Support Specialists, we offer many services that can be easily customized to your needs. Click below to learn more about our services: 

While these are the most utilized services, we work with you to find what works best for you. If you are an employer or job seeker in Southeastern Wisconsin who is struggling to fill a position or find a job, please reach out to Staffing Support Specialists to receive help today. 

Staffing Support Specialists has matched great candidates to the right role for over 20 years. Contact us to apply or fill an opening today!
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Staffing Support Specialists

Simplify the Hiring Process Without Sacrificing Quality. Serving Southeast Wisconsin for Over 20 Years.

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