Temp agencies are more valuable to CEOs in the working world today. This is due to many reasons. Research has shown that 46% of human resources professionals say retention is their greatest concern, followed by employee engagement at 36%. Also, companies are finding that 22% of new hires leave their jobs within 45 days of being hired. Unfortunately, the costs of employee turnover range from 30% to 150% of the employee?s salary. Also, $11 billion is lost annually due to employee turnover. A remarkable 57% of organizations view employee retention as a problem.
Notably, more than 3 million temporary and contract employees work for America?s staffing companies during an average week. To keep up with the high rate of turnover and need for temporary and contract employees, multiple businesses are seeking the help of employment agencies These agencies keep an army of eligible people ready and willing to fill in for vacancies at work that may come up due to unforeseen circumstances. Employees may have illnesses, accidents, maternity leave, vacation leave, burn-out leave, or a number of other reasons that they will not be at work. Temp agencies are willing and ready to fill in these vacancies at short notice.
Recruiters that work at these agencies are trained to look at a candidate?s social media profile. They can compare this information to a candidates resume and application to see if they are truly hard working and honorable individuals. Recruiting agencies also give training and practical experience. It has been noted that new hires that undergo a structured on-boarding program are 58% more likely to be with the company after three years. Temp agencies can provide this on-boarding needed for companies.
Staffing agencies also have career training options and a diverse group to choose from. McKinsey?s research shows that gender-diverse companies are 15% more likely to outperform their peers and ethnically-diverse companies are 35% more likely to do the same. Once hired, the agencies can give tips on retaining good workers. They know that 86% of companies with employee recognition programs cite an increase in worker happiness. Whatever the business needs to retain good workers can be obtained through reputable job placement agencies.