4 Best Practices When Choosing a Staffing Agency

4 Best Practices When Choosing a Staffing Agency

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The current health crisis, combined with the labor shortage, has caused companies worldwide to rethink how and where to source their talent and establish their teams, with many turning to staffing agencies. This article will discuss what you need to know about staffing agencies to make sure they are the right agency for your company.

Offshoring as a business strategy is nothing new; it has been used for decades. What has changed, however, is the what, why, and who of offshoring technology. The “what” question was about manufacturing. The answer to the “why” question was to lower costs by using cheap labor. And the answer for “who” was large companies that could open factories overseas.

Today, with all the technological advances that have been made to provide remote work alongside the current situation, the answers to these questions have favorably shifted. Businesses are offshoring all sorts of functions and jobs: from administrative, virtual assistant, customer service and finance to digital design and Information Technology. As a result, lower costs are no longer relevant. Access to a global talent pool is now a priority. This is not only for large companies.

Related: Need to Hire? Benefits of a Staffing Agency.

Outsourcing versus offshoring

Before itemizing the key practices to implement when choosing a staffing agency, it is essential to clarify the distinction between outsourcing and offshoring to avoid misconceptions.

Outsourcing or business process outsourcing (BPO): Outsourcing occurs when a company outsources its entire process, giving control of the employees and the outsourced process to a third party. The company is paying for the completion of a process.

Offshore and nearshore staffing: Offshoring occurs when a company turns to another country to recruit staff. The company pays an agency to manage all aspects of staffing (employee records and law compliance), but the staff reports directly back to the company. The difference between offshore and nearshore staffing is that the former involves an overseas company, whereas the latter involves a neighboring country.

Design is one example of an important function that can easily be outsourced. This is assuming your company doesn’t specialize in design or has enough work to justify hiring a full time employee. If you are a marketing or design company, it is better to hire a staffing company to manage a remote team of designers under your direct supervision. Outsourcing design is not a good option in this situation.

What to consider when looking for the right nearshore or offshore staffing agency

As you can see, there are multiple ways to grow your team. In our company, Remote Team Solutions, we have seen many success stories: from a business that started with a single employee and grew into more than ten team members in less than two years to a business that was initially outsourcing its call center and now has its entire call center in Mexico working remotely. Our company has identified four key practices that can make a difference when selecting the right offshore or nearshore staffing agency. These practices are listed below.

1. Be ready and prepared

Working remotely is not the same as having your employees in the office. You need to be prepared when you hire a staffing agency. Be clear on what is better for the company: offshoring or nearshoring. Do you need your employees working in your time zone? Do you need them close so you can go to where they are and train them in person or fly one of the leaders to your headquarters?

2. Look at the staffing agency as a partner

You need to choose the staffing agency the same way you would a business partner. Your staffing agency will be able to provide support and additional staff as you grow. Your company’s values and work culture should be reflected in their work ethic. As you grow, make sure they are able to provide the positions and staff that you require. I recommend asking for references and examining the agency’s turnover rate.

Related: How to Recruit Talent That Has the ‘Agency Bug’

3. Never delegate employee selection

The team determines the company’s success. The staffing agency may be the expert in hiring and filtering, but no one knows your business and culture better than you; therefore, ensure you can interview all the candidates and have the last word on who to hire.

4. Communicate with your team

This is critical in ensuring the success of your remote team. Your nearshore team must be seen as an extension of your company. Make them feel valued and part of it. It is essential to feel connected. It is important to communicate with your team regularly, make sure they know what you expect of them, and hold daily meetings and remote events to integrate everyone in the team.

Conclusion

I encourage entrepreneurs and businesses everywhere to observe the changes that have taken place in remote working and consider how they can benefit the most from them. You can outsource non-core functions like bookkeeping and legal procedures. This allows you to concentrate on the tasks and processes that add value to your clients and company. These functions should not be outsourced, but you can still get the full benefits of a staffing agency. My personal experience has shown me that many companies have grown using these strategies. But, remember, as with everything in business, it is important to do it right. Take the time to find the right agency for you.

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