How Does a Staffing Firm Work?

Knowing the difference in hires.

Jun 25, 2019

Your company has an open position, but doesn’t have the time or resources to recruit, screen and hire.  Where do you turn for help? Staffing firms, like Lofton Staffing Services, are able to fill those positions with minimal time and effort spent on your staff and company.  

How does a staffing firm work?  

Once your company becomes an established client with a staffing firm:  

Recruiting: Once the job order is called in, the staffing firm will check their active database for an employee that matches the client’s job description and requirements.  If they don’t locate someone quickly, the firm will advertise the position in places job seekers are most likely to search, like their own website or on sites like Indeed to reach a wider audience.  

Screening: Once the staffing firm receives applications for the open position, they follow much of the same process as any other employer – contact candidates who meet their requirements, then interview, screen (background and drug tests), and conduct skill evaluations to the client's specifications.  The top candidates are then presented to the client for review.  

Placement: Once the staffing firm confirms the right candidate for the job with the client, the staffing firm will then hire that candidate and assign them to the client.  The staffing firm remains the employer, not the client (with the exception of a "direct hire" position).  That means all employer obligations – paychecks, taxes, insurance, workers’ compensation and any other benefits – will be the responsibility of the staffing firm. The staffing firm will invoice the client on employees’ hours, including a markup.  The markup covers all employer expenses and gives the client peace-of-mind that the employee is protected by federal law.  

What kinds of jobs do staffing agencies have?  

There are the four types of job categories to meet your company’s needs:  

Temporary:  Temporary jobs are just that – short term.  You know the start and end date of the position you need to fill.   

Temporary-to-hire (temp-to-hire):  This is the most common job filled by staffing firms as it gives the client time to “try on” a candidate to ensure a good fit before a permanent, full-time hire. A separation fee will be assessed if the employee is hired on permanent early, but by that time, the client has confirmed the hire is a good fit and is ready to make the hire.  

Direct Hire:  The staffing firm acts as a recruiter by screening and hiring candidates for regular, full-time positions. Employees are then hired directly by the client.  

Payrolling (PPP): The client refers specific personnel to the staffing firm for employment at their firm.  The staffing firm provides any background screening required, then are placed on the firm’s payroll for their exclusive use.  The staffing firm provides the entire payroll function, including year-end W2s.  

About Lofton: Founded in 1979, Lofton Services offers clients the best of all worlds. We provide the responsive, personal service and flexibility of a small local firm while having the technology, resources, and infrastructure to deliver the benefits of the biggest players in our industry. Lofton Staffing can deliver the right people, with the right skills, right when you need them. Celebrating 40 years in staffing excellence! Contact us today


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