What is a Staffing Company & How to Choose One
Hiring today is more complex than ever. Whether it’s finding reliable workers for a night shift, scaling your team during peak season, or replacing a key employee quickly, many businesses ask the same question:
What’s a staffing agency—and can it actually help?
What Is a Staffing Agency?
A staffing agency (also called a staffing firm or employment agency) is a company that connects employers with qualified job candidates. These workers may be hired for temporary, temp-to-hire, contract, or direct hire roles—depending on the company’s needs.
Staffing agencies manage the recruitment and placement process, often handling everything from advertising job openings and screening candidates to processing payroll and ensuring compliance.
For many employers, this means faster hiring, less paperwork, and access to a broader pool of talent—without overloading their internal HR teams.
What Do Staffing Agencies Do?
Here’s how a typical staffing agency works with a business:
1. The Employer Reaches Out
The company contacts the agency with specific hiring needs. This includes job descriptions, required skills, shift schedules, pay rates, and the duration of the assignment.
2. The Agency Recruits Candidates
Using a mix of job boards, internal databases, referrals, and local recruiting channels, the agency sources potential candidates. Some agencies specialize in specific industries, such as logistics or manufacturing, which helps improve speed and accuracy.
3. Screening and Interviews
Agencies conduct screening through interviews, skill assessments, and reference checks. Depending on the arrangement, the employer may also participate in interviews or evaluations before making a final selection.
4. Placement and Onboarding
Once a candidate is selected, the agency handles onboarding paperwork, orientation, and placement logistics. For temporary roles, the agency may also manage time tracking and daily check-ins.
5. Payroll and Compliance
In temporary or contract placements, the staffing agency typically serves as the employer of record. It manages payroll, tax withholding, workers’ compensation, unemployment insurance, and related compliance issues—removing a significant administrative burden from the client.
Staffing agencies also absorb much of the legal risk tied to employment, including wage and hour compliance, ACA tracking, and worker classification. This is especially valuable for companies operating across multiple states or managing complex shift schedules, where labor laws can vary. While joint employment rules mean businesses still share some accountability, staffing agencies play a key role in minimizing risk.
Staffing Agency vs. Temp Agency vs. Recruiting Firm
These terms are often used interchangeably, but they serve different purposes.
Staffing agency: Offers a wide range of workforce solutions including temp, temp-to-hire, contract, and direct hire—often for hourly or shift-based roles.
Temp agency: Focuses primarily on short-term, last-minute placements, often for roles with immediate needs.
Recruiting firm: Typically specializes in permanent placements, particularly for higher-level or professional positions.
For businesses hiring large numbers of employees, managing variable workloads, or needing operational flexibility, a staffing agency offers the most comprehensive support.
Why Employers Use Staffing Agencies
Staffing agencies offer several practical advantages for businesses.
Speed
Because agencies maintain active talent pipelines, they can often fill positions faster than internal teams.
Flexibility
Staffing solutions can scale up or down to match changes in workload, seasonality, or production demand.
Risk Reduction
The agency assumes employer responsibilities like payroll taxes and workers’ comp, reducing liability for the business.
Less Administrative Burden
Agencies handle job postings, resume screening, onboarding, and more—freeing up internal teams to focus on core operations.
Broader Talent Access
Staffing agencies can reach both active and passive job seekers, giving businesses access to candidates they may not find through traditional job boards.
Is It More Expensive to Use a Staffing Agency?
Many employers are concerned about the cost of using a staffing agency—but it's important to look at the full picture.
Yes, staffing agencies charge a markup on hourly wages or a placement fee for permanent roles. But that fee covers:
Job board advertising and outreach
Resume screening and interviews
Background checks and skill testing
Onboarding and training
Payroll taxes, workers’ compensation, and insurance
In-house hiring isn’t free either. The time your HR team spends reviewing applications, scheduling interviews, and managing compliance adds up—especially if a new hire doesn't work out. When time to fill is critical, staffing often turns out to be more efficient and cost-effective in the long run.
When a Staffing Agency Might Not Be the Right Fit
Staffing isn’t the answer for every situation.
It may not be the right fit if your company:
Is hiring for a highly specialized leadership role with long-term strategic impact
Has a stable workload and prefers to invest in long-term, salaried employees
Already has a robust internal recruiting function with low turnover
In those cases, investing in internal hiring systems or retained search firms may be more appropriate.
Common Misunderstandings About Staffing Agencies
“They’re too expensive.”
Markups exist, but the value often outweighs the cost—especially when considering time savings, reduced turnover, and lower compliance risk.
“They’re only for big companies.”
Small and mid-sized businesses rely on staffing agencies to avoid fixed HR overhead and stay nimble.
“Temps aren’t reliable.”
Reputable agencies maintain performance feedback systems, support training, and often supply workers who go on to become long-term hires.
How to Choose the Right Staffing Agency
Choosing the right staffing partner can make a measurable difference in workforce performance and peace of mind.
Industry Experience
Select an agency familiar with your sector. Staffing needs in warehousing, for example, differ from those in retail or healthcare.
Recruiting Process
Ask how the agency screens candidates. Look for a process that includes skill testing, reference checks, and background verification.
Responsiveness
Work with an agency that communicates clearly and can respond quickly—especially when urgent fill requests come up.
Service Range
Some agencies offer more than just placements. Consider those that provide onboarding support, workforce management, on-site support or safety training.
Reputation and Results
Check reviews, client references, and case studies. Look for evidence of reliability, long-term partnerships, and workforce success.
Why TIMPL?
Timpl is a staffing and recruiting firm with deep expertise in the light industrial manufacturing industry—specializing in automotive, warehouse, and logistics operations. From entry-level shift workers to highly skilled technicians and executives, Timpl connects businesses with dependable talent that fits both the role and the workplace.
With access to both local talent pools and global recruiting networks, Timpl offers flexible workforce solutions that go beyond filling roles. Whether you need temporary staffing, long-term direct hires, or executive search support, Timpl helps you stay productive, compliant, and ready for what’s next.
Ready for what’s next?
