A growing resource

U.S. staffing firms employ almost 3 million people per day across all industries, according to a survey conducted by the American Staffing Association
(www.americanstaffing.net). This vast work
force can provide a pool of talent that can be
tapped into by businesses to fill a variety of
part- and full-time jobs — from secretarial
to middle-management positions.

“Tapping into this resource allows a business to ramp up at a moment’s notice,” says
David Lemoine, Regional Vice President for
Talent Tree, a staffing company based in
Houston.

Smart Business spoke with Lemoine
about the steps you can take to select the
right staffing firm for your business.

In what industries/jobs do staffing firms typically specialize?

The main categories are as follows:

  • Office and clerical
  • Accounting and payroll

  • Engineering

  • Information technology

  • Nursing and health care

    Light industrial (jobs such as forklift
    driver, picker, packer)

  • Skill craft workers (such as manufacturing plant workers)

  • C-level executives

Staffing firms can sometimes specialize
in two or three of these areas. But it is rare
that a staffing company can provide qualified employees for all these positions.
Often, a business may have to rely on more
than one staffing company for all its needs.

What are the steps to consider when selecting a firm?

Your human resources department can
go through these steps. For smaller firms,
this responsibility can fall to the general or
office manager.

  1. Meet face-to-face with representatives
    of the staffing firm. This is important to
    start developing a relationship with the
    firm and for its representatives to get a
    good understanding of your business and
    its culture.

  2. Get references of current customers.
    Ask current clients how the staffing firm
    has helped, particularly with customized
    solutions to unique problems.

  3. Make sure the firm is stable and credible. Do not select a firm that has just
    started in the business. Make sure there is
    low turnover internally so that you can
    ensure that you will have continuity with
    representatives.

  4. Have the firm give you a checklist of
    what it provides with its services. Some
    important elements include: background
    and reference checks, social security verification, drug screening, workers’ compensation certificates, standard terms and condition of contract.

What are some red flags to look out for when
selecting a staffing firm?

The biggest red flag is when a staffing
firm competes solely on price. The fact is
that costs — and profit margins — are pretty much the same for all staffing companies. If a staffing firm is coming in at 15 percent less than its competitors, you bet they
are cutting costs and making shortcuts
somewhere, such as not providing drug
screenings or background checks.

What can a business owner do if the firm is
not the right fit — or the people they are
sending are not a good fit?

This is why it is important to take time
with the staffing company on the front end.
If a fit isn’t right, you need to call the
staffing company right away and have the
employee replaced.

You also need to have a conversation
about what went wrong and why. Was
there a miscommunication? How did the
staffing company miss the mark? Was
more training needed? Did the employee
not have enough experience? You can opt
to give the staffing firm another chance to
correct the situation. If the same mistake
happens again, you need to move your
business to another firm.

What distinguishes an average staffing firm
from one that is superior?

Many businesses don’t really understand
what a staffing firm can offer. They believe
staffing firms exist to offer short-term solutions to pressing employment needs. But
businesses need to realize that the best
staffing firms can provide a wealth of
advice that is outside the realm of simply
filling a job slot.

For example, firms can provide a wealth
of reporting statistics, such as how much a
business is spending on overtime (and if
the money would be better spent in hiring
more employees) and the cost of vacancy.
The key is to mine the firm for this information; a representative can often help a
business uncover problems involving
human capital issues, such as high
turnover rates. This opens up possibilities
for business owners to understand their
business at a deeper level, and make
human capital decisions based on the numbers, rather than instinct.

DAVID LEMOINE is the Regional Vice President for Talent Tree (www.talenttree.com), a staffing company based in Houston. Reach him
at (713) 473-5518 or [email protected].

David Lemoine
Regional Vice President
Talent Tree