Retaining Employees Acquired by Staffing Agencies

In today’s market, we obviously see the rise in difficulty of finding qualified talent. However, what might not appear obvious, but in-essence becomes more important than finding qualified employees, is retaining employees and specifically those acquired through staffing agencies.

The main reason for this is that clients have spent money and time to fill a role. The opening is sent to staffing agencies because the client is either in a crunch to fill a position to keep up with production or because they do not have the resources available to qualify or find good talent for future growth. In today’s job market, candidates have plenty of options, you must put practices in place to entice employees to stay, communicate their biggest concerns and make sure your investment through staffing will pay off.

Different Approaches to Hiring

Most clients prefer the direct hire model to acquire talent and retain employees because it is the most simple, and job-seekers are more enticed by direct placement. A direct hire candidate starts as the primary company’s employee the minute they step into the door on their first day of work. They are like any other employee, offered health benefits, 401K, and any other program available.

The opposite of this is contracting and contract-to-hire, where a candidate is employed by the staffing agency, receiving contractor benefits and are on a basis for a contingent hire if they deliver exceptional results during their time as a contractor. The contract-to-hire model provides clients with more time to evaluate applicants and face a smaller loss if the contender is fired, cut loose or the candidate quits.

In most direct hire contracts, there are guaranteed terms with which clients lobby to ensure that a candidate stays up to 30, 60 or 90 days after they have been hired. If a candidate stays longer than the “guarantee” the staffing organization has done their job in placing a qualified person and retaining employees is now up to the client.

How-To Get Successful Results Retaining Employees

This can be done several ways, but where my clients have seen the most success is through quarterly/annual reviews with staffing agency hires. After the aforementioned guarantee runs out on the staffing contract, it is important to stay in communication with the new hire because they need to feel as if the company is a good fit for them. Having two separate parties to please is what makes staffing so difficult. In order to show the candidate value in their current role, good communication is key.

We often see that clients communicate more with candidates in a contract-to-hire situation (i.e., you are on target, need improvement or are a letting candidate go) especially at the end of a 6-month contracting period. This is a great practice but should be implemented even more so in a direct hire scenario since guarantees are shorter and there is more investment in a direct hire.

Many companies feel as though the candidate should appreciate that they are not on a contract basis and that they receive all the company benefits of being a direct employee. In today’s market, this is simply not enough. Whether it is making sure a candidate feels valued, understands his or her role and trajectory or perhaps just a review to say nothing at all beyond “good work,” feedback is useful.

Micromanaging is not the purpose of the review but instead, it’s to keep the employee comfortable, focused and make sure the relationship builds a strong base for the future. The longer a team member placed through staffing stays the better. Nurturing your investment to produce healthy growth and a sturdy foundation makes the money well spent.

Whether you’re using the direct hire or the contract-to-hire, it is imperative to ensure that you’re creating a welcoming environment that employees want to work in. This will help you maximize your employee satisfaction and make the most out of your investment in staffing solutions.

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TriMech Marketing

TriMech provides thousands of engineering teams with staff augmentation and project engineering solutions that work hand-in-hand, from sketch to manufacturing.
Related Service
Engineering Staffing & Recruitment
  • Direct Hire Service
  • Contract to Hire Service
  • Engineering Project Personnel

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