Recruiting via Temp Agencies has Its Benefits and Drawbacks – Here’s a Look

Of late, the concept of temp hiring or recruiting job candidates via third party staffing companies has gone up considerably within the Indian recruitment scenario. Companies in India – domestic and multinational corporates have resorted to the idea of temp hiring and have started outsourcing recruitment via numerous employment temp agencies.

Even temporary workforce—where employees work for a short-span of time are on a rise within the Indian recruitment scenario. Organizations have begun resorting to temp agencies for recruitment owing to multiple benefits of the same.

In modern times, bigger companies are moving towards the concept of third-party payroll and therefore there has been a rise in staffing companies or temp agencies in the recent past.

Temp hiring is predominantly done for individual positions, short duration of workforce needs, specific skill sets and also to fulfill sudden demands. The understanding is that the association between the employees and the organization for fixed time span and is subjected to renewal.

Benefits of contract staffing/temp workforce

The main purpose of contractual hiring is usual done by companies so, that they can focus on their core business. Other reasons for recruiting via temp agencies are elucidated below:

  1. Increased focus on core business
  2. Reduction in administrative overheads
  • No liabilities associated with permanent employment
  1. Help speed up the overall recruitment process
  2. Access to a much wider talent pool

Drawbacks of recruiting via Temp Agencies

However, there are certain drawbacks of recruiting via temp agencies. Organizations need to be aware of it and therefore use it judiciously. Some of the major drawbacks of recruiting via staffing agencies are explained in the paragraphs below:

#1. Recruitment process becomes much expensive

The first drawback of hiring or recruiting via a staffing company or temp agencies is the high expenses of hiring that the organization has to bear. Working with a temp agency demands that you pay a fee for their services. If you use a temporary staffing agency to hire an employee you are paying a substantial markup over the employee’s compensation package which covers administrative costs, taxes, and some profit for the agency.

If you chose to recruit directly from their pool of candidates, you will be required to pay a certain amount of the employee’s salary directly to the temp agency. These costs can be negotiable but are unavoidable. Before utilizing third-party recruiters, consider your budget and assess ROI potential.

#2. Lack of control over the recruitment process

For many Human Resources professionals or hiring managers, it becomes difficult to give up complete control over the recruitment or hiring process. You want to read every resume and interview every candidate. While the temp agency is usually in the process of consolidating the top candidates and hand them over to you. It can be frustrating to take yourself out of the process altogether.

Working with a third-party staffing company or a temp agency, may or may be the right solution for your company. However, even if you want to opt for working with a staffing company, always remember to your homework before hand and then opt for it.


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