Background Checking your Staffing Agency

Spring Edition, 2009 Volume #2

The search for a reliable staffing agency can be an overwhelming process for companies that are new to using alternative staffing arrangements.  The uncertain economy is prompting many businesses to consider utilizing staffing agencies to supplement their workforce in the face of uncertain production loads. The quality of your employees is essential to the success of your business.  The quality of service that an agency provides will correlate directly with the quality of employees the agency will place at your business.   This article will explain how your company can evaluate a staffing agency’s fiscal health, industry knowledge, and em­ployee relations in order to ensure that you get a good return on your company’s investment in staffing services.

Employee / Customer Relations

Visit the Agency in Person:  As with any candidate interview, you can never underesti­mate the importance of first impressions.  Visits to the agency office will let you ob­serve how they interact with applicants and employees, judge their level of organization and also experience the level of professionalism they show throughout their daily routine. 

Request References:    Request references from other clients that have used the agen­cies services in a similar capacity to your company’s needs, industry and size.

Meet the Recruiter:  Make sure you meet and interview with the recruiter who will be as­signed to your company prior to contracting their services.  Use behavioral interview questions to determine how the recruiter would handle various employee situations.

Industry Knowledge

Industry Memberships:  Industry memberships are an indicator that the agency is proac­tive on staying current with labor laws and industry trends.  Look for associations such as The American Staffing Association, Wisconsin Association of Staffing Ser­vices, and various community associations such as the Chamber of Commerce.

Agency Staff Experience / Education:  Ensure that the recruiter and staff have the neces­sary background and education to provide knowledgeable services to both your com­pany and the employees.  The agency staff should be able to demonstrate a solid knowledge base in regards to employment law and human resources.

Fiscal Responsibility

Research and Background Check:  Internet sites such as Better Business Bureau and Wisconsin Circuit Court Access are good sources to perform background checks on businesses.  Excessive judgments or complaints could be an indicator of financial instability.

Certificate of Insurance:  Prior to contracting with a company ask to have an up to date copy of the Workman’s Compensation Insurance Policy. 

Up charge:  Agencies vary in charges and length of contract for the employee.  A true cost analysis will factor in both the charge for the service and the length of the con­tract term.