How to Choose the Best Staffing Agency for Your Growing Business

For small and growing businesses, hiring the right people is key to success. The right team drives growth, keeps productivity up, and builds a strong company culture. However, finding the right people can be a major pain point for small business owners. It’s often time-consuming, expensive, and overwhelming—especially if you need to fill roles quickly or find candidates with specialized skills. Many small businesses lack the resources for a dedicated HR team, which means hiring falls on already overworked owners or managers who don’t have the time or expertise to do it efficiently. This leads to prolonged vacancies, missed opportunities, and increased stress.

This is where staffing agencies come in handy. They can help take the burden off your shoulders by simplifying the hiring process. Agencies connect you with qualified candidates, manage the initial stages of recruitment, and allow you to focus on running your business. They are particularly useful when time is of the essence, or when the specific skills needed are hard to come by.

In this guide, we’ll break down everything you need to know about working with staffing agencies, including the different types of agencies, when it makes sense to use one, and how to choose the best fit for your company. By understanding these options, you can make more informed decisions and ultimately build a stronger, more resilient team.

A staffing agency is a company that helps businesses find employees. It acts as a go-between, connecting employers with job seekers. The agency takes care of recruiting, screening, and sometimes even employing candidates, depending on the type of contract. Some agencies focus on specific industries, while others offer more general staffing solutions.

Working with a staffing agency usually involves these steps:

1. Understanding Your Needs: The agency starts by understanding your hiring needs—whether you need temporary, permanent, or project-based help, and what skills and experience are required.
2. Finding Candidates: The agency uses its network and resources to quickly find qualified candidates. They often have access to a larger pool of talent than most small businesses do on their own.
3. Screening Candidates: The agency handles initial screenings, such as resume reviews, background checks, and skills assessments, and then sends you a shortlist of the best candidates.
4. Presenting Candidates: You receive a list of pre-screened candidates, saving you time. You can interview them yourself or rely on the agency’s recommendations.
5. Hiring and Onboarding: Depending on the contract, the candidate may stay on the agency’s payroll or transition to yours if hired permanently.

Here are some common situations where using a staffing agency makes sense:

1. Temporary or Seasonal Roles: If you need extra hands for a short period, such as during a busy season, a staffing agency can help. For example, a small e-commerce business may need warehouse workers during the holiday rush but doesn’t want long-term hires.
2. Specialized or Hard-to-Fill Roles: Finding someone with a rare skill set, like a senior IT specialist, can be tough. Staffing agencies that specialize in your industry can help find these candidates more efficiently.
3. High-Volume Hiring: When you need to hire many people quickly—for instance, after securing a big contract—staffing agencies can manage large-scale recruitment and help you find the right people fast.
4. Support for Your HR Team: If your HR department is small or overwhelmed, a staffing agency can be an extension of your team, handling recruitment so you can focus on other priorities.

Staffing agencies aren’t always the best solution. Here are a few cases where handling recruitment in-house may be better:

• Long-Term Hiring Needs: If you’re regularly hiring for the same roles, it may be more cost-effective to build an in-house recruitment team.
• Cultural Fit is Critical: If you require a deep understanding of your company’s culture and/or operations to make the right hire, it might be best to handle recruitment in-house. High-volume staffing agencies, for example, may struggle to fully capture the nuances of your workplace culture, which can lead to mismatches in hiring, increased turnover, or a negative impact on team dynamics.
• Lack of Control Over the Hiring Process: Some businesses prefer having complete control over every step of the hiring process. When using a staffing agency, you are entrusting an external partner with crucial parts of recruitment, which may result in decisions that don’t fully align with your expectations. This can be particularly challenging if the quality of candidates presented doesn’t meet your standards or if the agency’s process lacks transparency.
• Tight Budgets: Staffing agencies charge fees, typically a percentage of the employee’s salary, which may not fit the budget of some small businesses.

Understanding the different types of staffing agencies and their costs can help you decide which one is best for your needs:

1. Temporary Staffing Agencies: These agencies provide short-term workers. The agency pays the employee, and you pay the agency a fee that includes the worker’s wages plus a markup.
2. Contract-to-Hire Agencies: These agencies let you hire workers temporarily, with the option to make them permanent if they’re a good fit. This gives you flexibility before committing to a full-time hire.
3. Permanent Placement Agencies: Also called direct-hire agencies, these firms help fill full-time roles. They handle recruiting, and once hired, the employee works directly for you. These agencies charge a one-time fee, usually based on the new hire’s salary.
4. Executive Search Firms: Used for senior-level or highly specialized positions, these agencies conduct an extensive search to find top talent for leadership roles. They typically charge a fee that’s a percentage of the new hire’s salary.

Here’s how to start your search for the right staffing agency for your business:

1. Define Your Needs: Determine what roles you need to fill, the skills required, and whether the position is temporary, contract-to-hire, or permanent.
2. Look for Industry Expertise: Choose an agency that specializes in your industry. For instance, if you’re in tech, an IT-focused agency will have better access to the type of talent you need compared to a generalist agency.
3. Research Reviews: Look at reviews and testimonials to gauge the agency’s track record. Positive feedback from businesses like yours can be a good indicator of their effectiveness.
4. Ask for Referrals: Utilize your professional network to get recommendations from other business owners or HR professionals who have successfully worked with staffing agencies.
5. Assess Their Screening Process: Understand how the agency vets candidates. A thorough screening process ensures that you receive high-quality candidates who meet your specific requirements.

If you need help getting started, check out our Staffing Agency Vendor Guide for a curated list of agencies that specialize in helping small and growing businesses like yours.

Once you’ve identified potential agencies, use these tips to finalize your choice:

• Request Case Studies: Ask for case studies showcasing how they’ve helped businesses similar to yours with hiring challenges. Pay attention to metrics like time-to-hire, candidate retention rates, and examples that demonstrate their understanding of your industry.
• Schedule a Meeting: Arrange a meeting to discuss your needs and evaluate whether their approach aligns with your expectations. Look for professionalism, responsiveness, clear communication, and a genuine interest in your business’s growth.
• Understand Their Recruitment Process: Make sure you understand how the agency sources candidates, how they present candidates to you, and the other steps involved in their recruitment process. Ensure you are comfortable with their approach and that it aligns with your expectations for quality and transparency.
• Evaluate Cultural Understanding: The agency should take time to understand your company’s culture and values. Finding a staffing partner who values cultural fit increases the likelihood of successful, long-term hires that thrive in your environment.
• Review Contract Details: Examine their contract terms thoroughly, including fees, guarantees, and other policies. Ensure there are no hidden costs and that the contract is flexible enough to meet the unique needs of a small business. It’s also a good idea to have an attorney review the contract to make sure all terms are fair and protect your interests.

Staffing agencies can be a valuable resource for small and scaling businesses that need to hire quickly, find specialized talent, or manage recruitment surges. By understanding when and how to use them, you can make smarter hiring decisions and keep your business moving forward. To make your search easier, we’ve created a list of the Best Staffing Agencies for Small Business Growth. Whether you need temporary help or are hiring for key roles, our directory can point you to the best options for your business