Tag Archives | staffing

Recruiting vs Staffing

Difference Between Recruiting vs Staffing

The difference between recruiting vs staffing is that recruiting is acquiring talent to be a full-time employee. Whereas staffing is the hiring of an agency to provide temporary workers.

Recruitment / Placement

There are many recruitment agencies or placement agencies. It may also be referred to as a retained search. They typically charge a percentage of the hire’s salary as a placement free. Those agencies then collect resumes, interview, vet, and eventually get the client’s approval for hire. After the client approves and hires the recruit, the agency has finished their job. The client company not only hires the recruit, but is also responsible for the Social Security, Medicare, and employment taxes. In addition, those employees usually expect benefits such as health insurance and 401K.

Staffing Agency

Conversely, a staffing agency fills the gap when a client company needs a number of employees immediately but does not have the resources (capital) to afford all that is involved with hiring an employee. Staffing provides temporary workers that can be specialized to the client and bills them on an agreed to hourly rate

Hiring Process Through a Staffing Agency

A staffing agency has numerous job ads published to recruit the best talent. The agency then reviews the resumes, interviews potential candidates, and eventually, finds the perfect employee to fill a position at a client company. Depending on the demand, agencies can have a significant amount of employees that they can deploy.

Hiring a Staffing Agency

When hiring a staffing agency, it is important to assess your needs. Are you seeking specialized workers? Do you need 80 employees tomorrow or just 2? Different staffing agencies are going to be able to help you with what you need.

Advantages of Hiring Through a Staffing Agency

Some advantages of hiring through a staffing agency include seeing a potential employee in action before making the commitment to hiring them. Companies also are able to offset the costs of hiring to the staffing agency – essentially stretching their dollar. Additionally, companies are able to get a number of employees quickly, bypassing the weeks hiring usually takes.


Looking to hire a staffing agency to fill your accounting department needs? The Strategic CFO has recruited the best talent to serve your staffing needs. Click here to learn more about how we can serve you best.


recruiting vs staffing

Share this:
1

What is a Staffing Agency?

See also:
Recruiting vs Staffing
What the Current Hiring Process Costs
When You Know It’s the Right Hire

What is a Staffing Agency?

A staffing agency is an entity that has employees that can be hired out for temporary or long term work. A staffing agency is also referred to as an employment agency. It provides temporary workers. Some agencies are industry focused or specialized. For example, The Strategic CFO’s staffing line focuses on accounting and financial positions.

Staffing agencies are different from placement agencies or retained search services. Placement agencies collect a fee to recruit a full-time employee. Those employees belong to the client company – not the agency.

How Do Staffing Agencies Work?

Staffing agencies conduct both the hiring and firing of employees. They also pay for the employment taxes, Medicare, Social Security, etc. The client company specifies the amount of temporary workers needed and the hourly rate. Frequently, the agency specifies the hourly rate for each worker, but it is negotiable.

Why Hire a Staffing Agency

One would hire a staffing agency if they need employees now and they want to offset employment costs (benefits, employment taxes, etc.). There is either a time constraint or a resource contract. Some of the benefits include getting a number of employees quickly and knowing that they are qualified for the position.

Oftentimes, agencies have run credit reports, criminal background checks, and drug tests on those employees so the client never has to worry.

Difference Between Hiring and Working For a Staffing Agency

Whether you are seeking to work for an agency or hiring an agency, there are several things that you need to know.

Working for a Staffing Agency

When you work for an agency, you can expect to work with companies for anywhere from a couple of months to a couple of years. You are technically an employee of the agent and working with the client. However during your time at a client’s office, you act as a regular employee of the company. In some cases, companies will hire the employee from the staffing agency. This is a great opportunity for those employees as they get exposed to different industries and company cultures. Temporary work also allows you for you choose your own schedule. Only want to work a couple days a week? Or have the summer off? Some agencies will work around their staff.

The Strategic CFO’s staffing line brings each staffer in every quarter to review their work and to further their financial leadership skills. If an bookkeeper wants to become a staff accountant, then there is opportunity to get the training needed to make that leap.

Hiring a Staffing Agency

When you hire an employment agency, you need to choose the right agency. Are you looking for positions that anyone can do or are you seeking for a more specialized trade? There are staffing agencies that supply manufacturing workers, domestic workers, and/or professional employees.

It is important the client company is communicating often with the agency to get the most out of the relationship. If a particular employee doesn’t fit, then the agency needs to know in order to replace that employee. Agencies have access to a variety of staff and make it their goal to pair the right employee with the client company.


Looking to hire a staffing agency to fill your accounting department needs? The Strategic CFO has recruited the best talent to serve your staffing needs. Interested? Click here to learn more about how we can serve you best.


Staffing Agency

Staffing Agency

Share this:
7

5 Ways to Prepare for Seasonality

four seasonsSeasonality can be brutal.  If your business is like ours, summertime is pretty slow.  The phones don’t ring, employees and clients are on vacation, nobody is available for appointments and not much happens in general.  Even if summertime is busy in your industry, chances are that there are other times during the year that business slows down noticeably.

5 Ways to Prepare for Seasonality

While a slower pace may sound like a dream if you’re coming off of a busy season, a slowdown can cause issues if not anticipated and planned for.  Employees out of the office can impact productivityCustomers unavailable for appointments and silent phones can mean fewer sales.   All of these factors can have a negative impact on profitability and cash flow.  Here are some steps you can take to prepare for these slow times and minimize their impact.

Consider Temporary Staffing

Some businesses do 75% of their work during 25% of the year.  This definitely makes resource management challenging.  Even if your company isn’t in an extreme situation such as this, utilizing temporary staffing can help smooth out seasonal bumps in productivity.  With staffing firms cropping up in more and more industries, the availability of temporary workers is on the rise.  While the short-term cost of these employees may be more than an in-house worker, the flexibility they provide is attractive to companies that aren’t able to carry the burden of excess staff during slow times.

Build Up Your Backlog

What happens to your sales pipeline shortly before quarterly sales bonuses get paid out?  Chances are, you see a sudden spike in closed sales.  What this seems to demonstrate is that our salespeople have some measure of control over the efforts to close their sales.  With this in mind, there are a couple of approaches you can take to ensure that there are enough sales to get you through the slow times.

First, try sitting down with your sales force with a calendar and map out your seasonality.  Awareness of the seasonal dips may be enough incentive to encourage them to build up their backlog prior to these dips.   Assuming that your sales staff will only be motivated by sales commissions, an alternative solution would be to set your bonus payout dates immediately prior to your slow times.

Keep an Eye on Your Inventory Levels

If your vendors experience the same seasonality as you do, they may not have the manpower to keep up with customer orders in a timely manner during their slow periods.  Hitting them with a last-minute rush order may not work out well and going to another vendor will likely yield the same results.  To avoid running out of key materials, make sure that items needed for planned production are ordered well enough in advance to allow for any seasonal slowdowns.

Get a Handle on Cash

During slow times, a business is likely to consume more resources than it produces.  To ensure that your business has enough liquidity to keep things running smoothly during seasonal dips, it’s important to manage cash carefully.  Here are a couple of cash management tips below. For more ideas, check out our free checklist, “25 Ways to Improve Cash Flow.”

Collect Receivables

If you and your customers are on the same sales cycle, chances are that they’ll be short-staffed at the same times you are.  Payment of payables won’t be high on the list when departments are running on a skeleton crew, so make sure that you’re current on collections before things slow down.

Prepare a Cash Flow Forecast

One of the most important steps you can take in managing cash is to prepare a cash flow forecast.  The forecast will tell you when cash will be tight. Then you can work with your banker to ensure that your company has the liquidity it needs.  On that note…

Keep Your Banker in the Loop

Chances are, you are not your banker’s only client.  They likely have many clients across several industries, so they don’t always know when business is slow for your company.  Rather than waiting for your banker to ask you why this quarter’s results don’t look as good as last quarter’s, reach out to them. Do this especially before business slows down to let them know what your projections look like.  While it may seem counter-intuitive to give your banker potentially bad news, your candor will give them confidence in you and make it more likely that they will work with you if you need it.  Besides, you’ve projected that things are going to improve, right?

Regardless of when your slow times fall, taking steps to prepare for seasonal dips can help minimize their impact on cash flow and profitability.  Now is the time to start to identify and address seasonal fluctuations.  After all, the holidays are just around the corner…

prepare for seasonality

Strategic CFO Lab Member Extra

Access your Flash Report Execution Plan in SCFO Lab.

Click here to access your Execution Plan. Not a Lab Member?

Click here to learn more about SCFO Labs

prepare for seasonality

Share this:
1

LEARN THE ART OF THE CFO