Some of the main industries that play an important role in contributing to the U.S economy are workforce solutions, staffing, and recruiting agencies.
They not only help the economy immensely but also provide employment and career opportunities to millions of employees every year. On an average week, there are nearly 4 million temporary/contractual employees who are working for the staffing companies in the USA staffing. On a yearly basis, the staffing companies in the USA hire around 16 million temporary employees to work in various industries.
Staffing clients turn to HR Agencies in order to achieve the flexibility in workforce and to have access to a wider pool of talent. There are more than 2,500 HR Agencies in the USA which are operating around 50,000 offices.
In the article, we want to give you more information about how an HR agency in the USA can help your business to hire and retain the best employees.
What is an HR Agency in the USA?
One of the most common practices followed by many companies is employing a proper HR department to handle and take care of the employee hiring needs. It is a common option but involves a greater cost, as in recruiting suitable staff, handling the training, implanting the organizational culture, and a lot more.
There is also risk and worry involved of losing the customer base. All of these risks and cons can be minimized by involving a professional and an experienced HR Agency that is well versed and fully capable to provide customized staffing solutions.
HR Agencies in the USA can manage all the work related to hiring and having the best employees to onboard and this can yield greater results in success for the companies.
A company can be freed from the burden of recruiting and retaining the best employees as these HR Agencies have all the expertise and the knowledge required to drive the best outcome.
Functions of an HR Agency in the USA
HR agencies can offer many employment-related services, as listed below:
- Temporary and contract staffing: In this, the employee is recruited by the HR agency for a temporary or a contract position and the employee is not on the payroll of the company but instead of the HR agency.
- Recruitment and Placement: Helps companies to recruit and hire the best candidates within the company’s budget by using a variety of practices to search for the best and suitable talent.
- Outsourcing: This includes not only managing the core HR regulations but also taking care of all the other important areas in the HR domain which includes talent acquisition, employee goal defining and having them achieve the same, providing development support, encouraging employee engagement, including reward system.
- HR consulting: This includes specialist advice and services provided by the agency that can help companies to enhance their efficiency with their HR operations and thereby, implementing policies that can yield the best results.
- Benefits and Compensation: These includes base pay, benefits, commissions, salaries, bonus, etc. The HR agency helps to increase the business’ personal budget by determining the positions that need to be filled by the employees and the functions that should be outsourced.
- Legal Compliance: This is another area where an HR agency can provide expertise. Agencies have the knowledge about the U.S. Equal Employment Opportunity Commission and U.S. Occupational Safety and Health Administration guidelines along with the rules and regulations. An HR agency in this matter can help the companies develop employee handbooks with all the important policies and procedures that must be followed.
Every service listed above has its own advantages and features. The needs of each company can vary and depend upon the specific needs of a business, which will decide the best and the most suitable option for a company. This is one of the greatest benefits of involving these HR agencies, that they have the experience and knowledge which is necessary to decide the best option to suit your business according to the situation.
7 Benefits of Using an HR Agency in the USA
HR agencies in the USA help in recruiting and selecting the employees for a particular position for organizations that do not have the resources, time, or experience that is important in managing the employment process.
The employees provided by such HR agencies can be temporary workers, and some provide temp-to-hire arrangements. Whatever the employment type is, there are many advantages of using HR agencies in hiring and managing employees.
Following are some of the advantages that are involved in working with an HR agency:
- Experience & Expertise
The level of expertise that HR agencies have might exceed an individual company’s own HR department. It could involve a lengthy recruiting time to find qualified candidates for hiring recruiters/employment specialists or for hiring employees or recruiting manager who can supervise the staff. HR agencies can help provide the best-qualified recruiters and employment specialists at a much lower cost. The employees that are provided by the HR agencies have a higher level of expertise related to the job knowledge, trends in employment as they have gained this experience and expertise by the regular placement of employees.
- Cost & Effort
Having an HR agency to handle the hiring employees not only leads to lower costs associated with the hiring staff, but also free employers of all the costs and efforts related to pre-employment screening such as background checks, drug screening, etc. Also, all the expenses related to payroll processing and benefits administration can be saved by the employers. By outsourcing to the HR agency, companies can save a lot of effort that can be utilized on other core business operations.
- Network
HR agencies have many suitable employees for any specific position that they can approach, as they have access to a network of a wide pool of candidates. This is something that many employers may lack as they are not connected to such a pool of candidates and in some cases, they might need advertising to find and interview candidates. This could be very time-consuming too. Staffing agencies, on the other hand, may have relationships with workers they’ve already identified as dependable, reliable, and conscientious and who can fill a vacancy in a matter of days, or even hours. The network accessible to the HR agencies is much broader and they can easily have a potential employee to fill any type of position that might be required by the employer on short notice.
- Retention capacity
Employers who engage an HR agency to provide the staffing services against filling up a temporary vacation also get an opportunity to closely monitor the performance and work habit. They can then offer them a permanent position based on the individual’s performance.
- Freed Up Time
All the time that is spent on activities such as advertising openings, candidate interviewing & selection, etc. can be utilized on other core business activities and responsibilities as most front-end hiring activities are handled by the HR agencies which allows the in-house team to focus on revenue-generating tasks for the business.
- Providing Best Practices
HR agencies have a lot more experience as they provide service to various organizations and therefore provide and share with best practice as compared to the company’s HR department which only deals and is limited to performing functions within its own organization.
- Variety of Services
HR agencies can provide the clients with a wide range of services depending on the individual business when compared to the in-house team who can offer restricted services specific to the current situation and can result in greater overheads when there is the need for an additional service.
Conclusion
HR agencies in the USA can be highly beneficial to those companies interested in expanding into the country and in need of not only recruitment services, but also services that will allow them to save costs and set up a business in a more effective way, without risking being not compliant with the local laws.
Our PEO service in the USA can help your company to hire employees with or without a local legal entity and it can help you to maintain a stable employment relationship with your employees while managing their payroll and benefits administration.
Contact us to know more!
