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Workforce Solutions: Behind The Traditional Staffing Model Curtain

Posted by Louis Flory

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3/26/15 4:38 PM

For many companies, temporary labor solutions can seem like a valuable option for handling workforce deficiencies that need to be addressed sooner rather than later. In reality, the use of the wrong temporary staffing agency brings with it some problems that might make them a less-than-optimal solution for your workforce needs. 

Many Clients, One Industry

From an economic standpoint, temporary staffing agencies must have many different clients in a particular market to stay profitable. In some cases, temporary staffing agencies can service hundreds of different kinds of companies within the same industry.

For clients, this means a tremendous amount of competition for the same pool of talent. Working with a temporary staffing agency might mean you are competing with dozens of companies just like yours that are interested in the same people. This can create frustration and make it harder for companies to fill their needs. Even more worrisome, when you do get laborers sent to you, competition for the best talent means a higher chance that you will be provided with someone who isn’t competent enough to handle the requirements of the job.

Communication Issues

In almost any industry, companies that serve hundreds of different clients are bound to face challenges communicating with their individual clients. Temporary staffing agencies are no exception. If you have trouble getting a hold of the right people at the staffing agency that you choose to work with, it could lead to some serious issues like low production, turnover and excessive labor spend. 

Questionable Screening Tactics

While it’s true that there are some staffing agencies that have thorough, open policies regarding the way that they screen their candidates, it can be difficult for clients of some staffing agencies to understand exactly how their contingent workers are screened and placed. This can lead to situations where a worker is sent to a place that they are not suited for.

A Temporary Solution

By their very nature, a temporary staffing agency is a type of company that provides workers for people in the short-term. While this might be fine for some businesses, most organizations will eventually want to find a permanent employee who can become a long-term member of the team. Continuing to work with an agency that specializes in temporary employment could lead to turnover problems over the long haul.

Risk Management Problems

For companies that have at-risk positions, constantly bringing in new people who aren’t familiar with the dangers of the job can be very problematic to the way that the company manages risk. By their nature, newer employees won’t be as up to speed on minimizing risks in the workplace, which means there is a greater chance for dangerous accidents to occur when contingent workers are around.

The type of hiring solutions that your organization employs will depend on the specific nature of your business, your available resources, and your workforce goals. Before hiring any staffing agency, make sure you have a clear understanding of their processes and services before you work with them.

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Topics: Workforce Management