Benefits of Hiring Placement Agencies for your Staffing Needs


Placement agencies act as the intermediary between a company’s human capital needs and a job seeker. They facilitate and ensure better hire ability. The agencies collect employee data over the years and experience makes puts them at a better position to fulfill the staffing needs of a company.

Some benefits of hiring placement agencies for your staffing needs are:

  • Access to Huge Database of Worthy Candidates

Unless they are new in the field, placement agencies maintain huge databases of candidates across multiple fields, experiences, skills and educational qualifications. Hiring placement agencies is undoubtedly beneficial because it will reduce your work on advertising for available job positions, sifting through multiple applicants, deciding which candidate suits the company needs, conducting interviews and more.

Instead, all these activities are handled by placement agencies in a fraction of time. It often happens that placement agencies have several ably qualified candidates on their mind which matches your company requirement and therefore, recruitment takes lesser time.

  • Cost Control

It will take your company many resources in terms of time and money to go through the whole recruitment process in detail. Moreover, in due time, most of the invested resources prove to be negligible because recruitments do not happen daily. On the other hand, placement agencies are equipped to handle the complete process. It is their job and they possess better connections and infrastructure in place to gather ideal human capital for your business. Outsourcing to placement agencies will reduce costs to the company.

  • Industry Expertise

Whether you are hiring for an entry-level vacancy or an experience high-value executive, the ‘right’ kind of placement agencies will meet the demand perfectly. They have wide knowledge and experience of the industry which equips them to handle varied client requirements in the same industry.

  • Temporary vs. Permanent Employment

Hiring placement agencies makes more sense if you are looking for temporary or contractual employees. Such employees will work for a specific periods of time, like three months or six months, and therefore, outsourcing its recruitment to placement agencies seems better as it will save the company unnecessary expenses incurred in hiring them directly.

The recruitment agencies often have a panel of people eager to take up temporary employment and thus, they can fulfill your business requirements faster. Moreover, the temporary employees are under the payroll of the placement agencies. You just need to transfer their emoluments and other benefits to the agency and it is disbursed to the temporary employees.

In contrast, permanent employees are under your direct payroll and the placement agencies take a fee as their commission.

  • Higher Retention

Numerous case studies and research reports reveal that hiring placement agencies to fulfill temporary and/or permanent employees have higher retention rate.

This observation is higher in temporary employment positions because you as the employer are able to study and observe the working of the temporary employee and therefore, based on performance levels, you can offer a permanent position. Hiring a placement agency helps to lower revenue losses.


Hiring placement agencies is beneficial for your company on multiple levels.

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