The Advantages of Working with a Staffing Agency vs. Hiring an Employee Directly

working with a staffing agency

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When you’re looking to fill a vacant position in your company, the options can seem endless. You could hire an employee directly, but that comes with a lot of risks – what if they don’t work out? You could hire internally by promoting one of your current employees. Or you could work with a staffing agency, which can provide you with qualified candidates who are a good fit for your company.

Though many small business owners are unaware of it, there are tremendous benefits to be gained by leveraging the services of a staffing company. In addition to cost savings, workforce flexibility, better access to top talent, and less administrative work, businesses that make use of staffing agencies also enjoy a better-engaged workforce. Employees who are placed by staffing agencies are more likely to be satisfied with their positions and feel appreciated by their employers compared to employees hired directly.

As a result of hiring an employee through a staffing agency, your employees are less likely to leave their jobs, saving the business both the time and money that would be required to find and train a replacement. 

In today’s competitive business environment, any advantage that can be gained should not be ignored. This is why we’ll discuss the advantages of working with a staffing agency vs. hiring an employee directly.

Better Talent Pool

The war for talent is increasingly competitive, especially for small and medium-sized businesses, who often cannot compete with the salary and benefit packages offered by larger businesses. In addition, larger businesses often have more resources to devote to recruitment, giving them an advantage in attracting top talent.

Many times, small and medium-sized business use staffing agencies because they have more resources for recruiting. Staffing companies usually already have large databases of potential candidates, giving their clients access to a pool of top talent that they might not otherwise be able to reach. As a result, staffing companies play an essential role in helping smaller employers compete for the best talent. 

Here are City Personnel our database consists of over 50,000 candidates located in Rhode Island, and over 20,000 candidates located elsewhere!

Cost Savings

Staffing companies can be a cost-effective option for filling certain positions within your company.

The process of recruiting, screening, and hiring candidates can be time-consuming and expensive. You could invest your own advertising dollars in an effort to reach potential candidates, but there is another option that can save you money and still get the job done effectively: work with a staffing agency.

You can choose to spend thousands of dollars advertising your job opening, or you could use a staffing agency and not have to work about advertising at all. Your cost savings will also be realized by not having to pay employee benefits, not having to invest in training, and having access to a larger pool of potential candidates. 

In addition, staffing companies typically have lower turnover rates than companies that do not use staffing firms, which can further reduce your costs.

When considering whether or not to use a staffing company, it is important to weigh the cost savings against the potential downside of less control over the hiring process. However, for many companies, the advantages of using a staffing company far outweigh the disadvantages.

Reduce Risk

Another benefit of working with a staffing agency is that they handle all of the HR-related tasks for you. This includes things like payroll, taxes, and worker’s compensation. This means that you don’t have to worry about any of those issues, and you can focus on running your business. 

Additionally, hiring an employee through a staffing agency provides you with more protection than hiring an independent contractor. This is because an independent contractor is essentially a one-man show, and if something goes wrong, you could be held liable. However, if you hire an employee through a staffing agency, the agency will be responsible for them. This is a better arrangement for both parties involved.


The advantages of using temps are many and varied, and larger companies have been quick to take advantage of them. As a small business owner, you can use the agency’s employees as much or as little as you need and have the flexibility to discontinue them once your work is complete.

During slower times of the year, you can downsize without going through painful layoffs. During busy times, you will have access to great workers who can fill a vacancy in a matter of days. Temps can also be a great way to test out prospective employees before making a commitment to hire them full-time.

All in all, using temps is a win-win situation for both employer and employee. So what are you waiting for?


There are many advantages to working with a staffing agency vs. hiring an employee directly. Staffing agencies have a larger talent pool, which gives their clients access to top talent that they might not otherwise be able to reach. In addition, staffing companies play an essential role in helping smaller employers compete for the best talent.

If you are looking to work with a staffing agency, give us a call or visit!

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