TechBridge Inc.

How A Staffing Agency Affects Your Liability

TechBridge recruits top developers and places them with the businesses that need their expertise.
staffing agency affects liability

Staffing agencies are a great asset for many businesses. The ability to quickly find talented and qualified workers is essential to the successful operations of a company. However, there are several benefits to using a staffing firm that you may not have thought about. One of the biggest benefits is how a staffing agency affects your liability as a business. Here’s what you need to know!

How Does A Staffing Agency Work?

Before analyzing the liabilities of a staffing agency vs your business, it’s important to understand how staffing firms operate. Essentially, staffing agencies recruit individuals on behalf of companies looking for talented candidates. Positions to fill can range from part-time and short-term, to full-time and long-term, depending on the needs of your business. 

Generally, staffing agencies and businesses work together over an extended period of time so that the business has regular access to qualified talent as they need it. Staffing agencies typically specialize in a certain industry or niche, making it extremely beneficial for a company to develop a relationship with them.

Furthermore, staffing agencies, depending on the position, typically oversee most of the paperwork involved in the candidate’s hiring process, including:

  • Contracts
  • Potential termination
  • Employment taxes
  • Social Security
  • Payroll
  • Etc

This is typically more common among temporary hires, and if the company chooses to hire the candidate full-time, then they adopt the responsibilities mentioned above. Up until that point, however, the liability for potential issues falls on the staffing agency.

How A Staffing Agency Affects Your Liability

Although temporary employees perform their role under the direction of the business, the behind-the-scenes matters such as compensation, general liability insurance, and payroll taxes are taken care of by the staffing agency.

Utilizing a staffing agency allows you to test out a candidate without making a long-term commitment that could make you liable for certain hiring risks. However, responsibilities may change from one staffing agency to another, so it is always important to discuss with your staffing firm exactly who will be responsible for what including, on-site injuries, employee sickness, etc.

Other Responsibilities Of A Staffing Agency

Aside from payroll, there are many other benefits that fall under the responsibilities of a staffing agency. Specifically, the improvement to the hiring and firing process. Without a staffing firm, you would need to sort through potentially hundreds of resumes and applications. Then, you would need to conduct interviews with the candidates, taking away from HR’s manpower and workable hours. Not only do you have to deal with the cost of the hiring process, but additional costs if the candidate doesn’t work out.

With a staffing agency, the responsibility of hiring and firing a candidate falls on the firm rather than your business. If your candidate isn’t working out, simply inform the staffing agency and they will find you a replacement. No severance, no HR hours being wasted, and no long period of time until a replacement can be found. 

Staffing firms are a great option for businesses because they take the hardest parts of the hiring process and accomplish them for you so you can focus on what really matters, running your business.

How Can Techbridge Help?

At TechBridge, our goal is to bridge the gap between business and employee, matching qualified workers with the companies who need them. If you have any further questions or you’re interested in our staffing and recruiting process, contact us today!

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