Understanding Staffing Agency Costs

free recruiting softwareOver the course of the past several blog posts, we have talked in detail about temporary employees. This seasonal help comes in handy during times that are busiest throughout the year. They can help in various types of roles, especially those who have specific skills.

Today, we are going to talk about staffing agency costs that can come when you choose to have a company help you find top talent for seasonal help. We hope this info helps you understand what costs are involved and what you’ll be responsible for in terms of pay rates and more. Save money on staffing by using our free recruiting software. Recruiteze is number one for helping small businesses save time and money when tracking applicants and making new hires.

Hourly Pay Rate – In this case, the agency is paying a contingent worker that will be offering services for your company. This pay rate will be paid by your company through the staffing agency. The rate will vary depending on the worker’s qualification and skills. The pay rate will also increase if you ask for specifics for a certain type of worker.

Percentage Markup – This cost is the firm’s percentage markup. This is what you pay in addition to hiring through the agency. The markup is added on top of the pay rate. Sometimes, the rates can be as much as 40% but they can be as low as 15%. It all depends on how directly the staffing agency is involved in the overall hiring process. Unfortunately, there are certain situations where the markup can go as high as 50%, again depending on the how much the agency is involved.

Bill Rates – A combination of both hourly pay and percentage markup, bill rates are the amount owed in the end, after using a staffing agency. One of the best ways to make sure you’re paying a fair amount is to get a good idea of the type of employee you need. Then, consider the costs that it might take to seek them out, hire and onboard as well as pay them, on your own, without using a staffing agency. Then, you’ll have a better idea of what the staffing agency’s cost is and where it’s coming from. You’ll be able to ensure a decent price without going over on your budget.

Agency Markups – Signing a contract can be an expensive decision that will leave you paying for a staffing agency’s help long after you realize you might have made a mistake. Be sure to take a look at markup differences by researching several different agencies. You might find that shopping around will help you find not only the best agency, but also one that works well with your overall budget.

Because these staffing recruiters are finding you great talent, you’ll have to purchase their services. This can mean upping overhead costs. However, shopping around and working with the best agency in your area in terms of costs and services will be the best option.

Recruiting Software – Rather than hiring a staffing agency to help you with your recruiting needs, consider using recruiting software. Not only will you be able to seek out top talent with the best qualifications and experience, they’ll also be ones that offer the skills you need for temporary help.

We hope this information helps you better understand staffing agency costs. Also, this article might even help you reduce costs in a way that helps with overall budgeting, cost control and improve your hiring process as well as who you choose to employ.

If you’re interested in learning more about free recruiting software or a resume managing and formatting system that can help you streamline your overall hiring process without getting help from a staffing agency, consider Recruiteze.

The Best Free Recruiting Software For Hiring and Tracking Applicants

Recruiteze is the best free recruiting software. We offer the following benefits to small and medium sized businesses and staffing agencies that need extra help with their daily duties:

  • Database creation for all applicant records
  • Extract data from resumes and have it entered into the database
  • Search and find information within the database records with ease
  • Match applicants with jobs based on the skills described in their data records
  • Track applicants through the interview and overall hiring process
  • Maintain historical records for all applicants
  • Ability to access all information about applicant’s work history and experience
  • Ability to see what applicants are interested in, career-wise
  • Capability of being able to see what businesses have already accepted a job seeker’s application
  • Maintain historical records for hiring managers

If you are you tired of having to deal with all the daily hassles of online recruiting, you should try our free recruiting software, Recruiteze.

Recruiteze is great for both in-house recruiters and staffing agencies alike. Recruiteze gives your job candidates the ability to apply online, and be added to your database immediately, in a user friendly way. End-users can access their resumes online and make changes quickly and easily. Recruiteze also comes with a custom job board to make tracking talent organized and effortless. Candidates and customers have trouble-free access to your job information which creates a level of professionalism that’s expected in today’s marketplace.

Recruiteze also allows users to reduce the time it takes to format resumes for free. This automated applicant tracking system add-on formats resumes without any hassle or time consuming processes. Click here to try Recruiteze for free!

In fact, if you already have your free recruiting software in place, you can still use iReformat for free. Our basic membership is free and allows you to format up to 10 resumes per month, with no charge at all! If you find that you need more resumes formatted, take a look at our other packages, starting at $10 a month! Click here to use iReformat.