Hidden Costs of Not Using a Temporary Staffing Agency

by Usama Chaudry on December 18, 2020

Using a specialist temporary staffing agency to source the right skills and negotiate terms can relieve a lot of pressure and save considerable hidden costs of doing it yourself. Advertising on job boards is not the only expense involved. Candidate attraction comes with several other hidden costs.

Before you start with any recruitment project, take a look at our list of hidden costs to ensure you’re making the right choice.

Eliminate costly, wrong decisions

Every manager has likely made a poor hiring decision that may have cost the company thousands in wages, benefits, and lost productivity. Instead of worrying about your next hire, temporary staffing agencies pre-screen and test workers’ skills.

Besides, many agencies offer replacements if for any reason you weren’t satisfied, and the worker doesn’t meet your standards.

Maintain efficient work and productivity

Why waste your existing workers’ time and internal resources to train new staff when there’s a specialized staffing agency to take care of this. Staffing agencies can match skilled workers with the experience and skills you need while your regular staff can continue to work productively and efficiently.

Avoid overtime costs

When a busy season rolls around, your employees will more likely feel tired and overstressed, which increases the chances of making expensive mistakes. Hiring temporary workers through a temporary staffing agency will help you thrive during peak times and avoid paying excess overtime wages.

Flexible staffing

Regardless of your work, there will always be peaks and busy periods, followed by troughs and slow-paced ones. During these times, keeping full-time workers on board can be expensive. Instead, a temporary staffing agency will be ready to provide workers just when you need them to cost-effectively cut back on headcount.

When you know that you can count on quality back-up whenever you need it, you’ll find your budget stretched farther than it used it be, and you’ll be more relaxed taking on challenging and bigger opportunities.

Avoid unemployment claims

Unemployment claims are one of the major issues that companies face today, which can range in the thousands of dollars to let go of just one employee. But, you have the option to avoid this altogether.

When working with a staffing agency and you decided not to keep a temporary worker, you can replace them and let the agency deal with any claims, and all of this, in the end, you are not legally responsible.

Reduce HR costs

Have you monitored the time spent by your hiring managers and its equivalent monetary value?

Another cost-effective way staffing agencies help companies save money is by limiting their wage costs. Turning to a staffing agency to handle duties like attracting qualified candidates for open positions, taking care of disciplinary action, payroll processing, and terminating poor-performing workers will remove the need for extensive HR costs if any.

By now, it is clear that staffing agencies provide more value and a level of financial benefits to businesses than simply filling an open position. Saving on advertising expenses, overtime costs, turnover costs, HR costs, and helping avoid placement inefficiency are not nice-to-have benefits but a necessity for your business.

Well, recently, many businesses are shifting towards “partner” relationships with staffing agencies; read more about Why You Should Use a Staffing Agency for Temporary Hires here. (add link)

Primus WorkForce is more than your typical temporary staffing agency. We provide temporary-to-hire staffing, direct hire recruitment, payrolling, and on-site management. Contact us for information!

Usama ChaudryUsama is a professional engineer and graduated from the University of Alberta. Computations of electrical and thermal characteristics are among his research interests. Usama's hobbies outside of professional work include reading, playing tennis, and trekking.


The Primus Workforce team is proudly built on hands-on industry knowledge and experience.