When to use a placement firm

BY WARREN J. RUTHERFORD

As the economy slowly improves, businesses are turning more to temporary and permanent placement firms to save on hiring and benefits costs. We know that an effective hiring process is time-consuming and expensive and requires a good deal of focused effort and attention to do successfully. Add in the need to comply with a host of federal and state employment laws and practices, and the hiring process can become a challenge for even the most experienced business owners.

There are two placement options available to a business – temporary placements and permanent placements. Oftentimes a temporary hire can turn into a permanent hire if the right conditions are in place. When you look at your hiring need, ask whether the need is temporary in nature (usually less than three months), or whether you need the position as a permanent addition to your staff. Placement firms have talent that can serve both short- and longer-term needs, as well as part-time needs.

We suggest you consider using a placement firm to save time and expense in the placement of ads, screening resumes, interviewing candidates, checking references and negotiating salary.

If you have interest in using a placement firm, the following can help make this effort more successful: Be realistic in describing the job requirements and salary, and be as precise as possible in understanding and communicating the necessary job tasks, knowledge, skills, abilities and experience.

A placement firm will take much of the guesswork and headache out of the hiring process and can often tap into an already established pool of qualified and skilled workers that can result in a prompt filling for an open position. Don’t hesitate to ask the placement firm if it has candidates readily available to fill your need.

When a temporary placement is needed, the placement firm will hire the candidate, pay their salary, payroll taxes, workers’ compensation insurance and federal and state unemployment insurance. The firm will invoice you weekly and will need prompt payment in order to meet its legal payroll obligation to its temporary employees. As the employer of the temporary worker, the placement firm is required to follow all federal and state employment laws – EEOC, FMLA, FLSA, I-9, etc. – and to make sure it keeps abreast of changes in these laws.

We suggest you consider using a placement firm for a highly confidential search and to more precisely define your job needs to ensure a better person/job match. There is a fee involved, but there is also a performance guarantee to back up the talent. ■

Warren J. Rutherford is the owner of The Executive Suite in Hyannis and can be reached at wjr@theexecutivesuite.com or (508) 778-7700.


Published in Cape & Plymouth Business April 2010