Top 10 Tips to Screen and Select Temporary IT Staffing Vendors

In most mid-to-large businesses, IT hiring is possibly the second or third largest expense (#1 being the cost of their internal IT employees). Understand the Difference First... The method for recruiting 'contract/temporary employees versus recruiting 'permanent/employee' workers is quite distinct. Recognize that a typical vendor is unlikely to be an expert in both. You should preferably have two pools of dealers: one for agreement hires and another for permanent/employee hires.

This article focuses on contract/temporary staffing providers and can be helpful to recruitment and IT departments of all sizes of businesses with assistance from IT staffing companies in Dubai.

What is the Fee/Rate Arrangement for the Staffing Agency?

Agencies usually charge between 15% and 30% of a candidate's first year salary for direct hire positions. The term "compensation" generally applies to a wage, but be sure to specify that the agency's fee estimate does not include any future incentives or commission arrangements. The good news is that a person should be able to negotiate the fee reasonably easily, as most agencies would be willing to be flexible in order to win your company, especially if a company has several positions to fill. Pricing for temp-to-hire and temporary employment varies by organisation and role, since it is dictated by the expense of workers' compensation and employee taxes.

What techniques does the staffing company use to select candidates?

In addition to LinkedIn and Work Boards, inquire about the online instruments and channels that the staffing agency uses. For every recruiting agency, sourcing is the single biggest obstacle. Agencies that are especially professional in sourcing use a number of instruments and platforms. In addition to the obvious, inquire about their other tools and channels. Here are a few choices that the staffing company can bring up:

Temp to Perm Conversion

Ask about the vendor's policy on employing their contractor as an employee. one should be mindful that the consultant is also not personally hired by the vendor they are working with, and their subcontractors may have "non-solicitation" provisions for the vendor. Do not impose the conversion of Temp to Perm, since that will restrict access to good talent. But understanding what is getting you is vital.

Industry affiliations

Is the vendor a member of a recognised industry staffing organisation? If so, have some faith that patterns, laws and best practices are known to them. If they aren't, one should inquire as to why. Why is this supplier unable to invest in itself?

Ask about primarily target alliances, such as IBM, Oracle, and Microsoft. Although this is not important, it will help comprehend the specialisations of the vendor. Inquire whether candidates have access to proprietary learning content and training offered by industry partners if they are affiliated with a technology provider as a client.

System for Candidate Compensation

Assure and impose a candidate payment process. The candidate should earn pay once every two weeks, and no later than once a month, regardless of who hires the candidate. They would quit if the nominee is not paid at least once a month.

The vendor can pay their subcontractors within 5 business days of obtaining payment from the client company, in the worst-case scenario. (Note: a subcontractor is not the same as a consultant on the job.)

Financial security

This is important because temporary employees are compensated by the recruiting agency, and there are co-employment and other legal concerns to consider. There have been times when wanted data from a vendor goes back many years. Therefore, I need to work with a supplier who, in all sorts of economic cycles, has reasonable chances of survival.

Demand their sales, profit and loss statement, balance sheet, and other financial statements. A reliable provider should be profitable, but benefit, like 30 percent of revenues, should not be big. Ideal manufacturers would make a profit of between 5% and 15% of sales. Anything less means "risk" and "fat margins" implies something more.

Is the staffing company familiar with the business sector?

It's important to look for a contractor with experience staffing in the business sector while assessing potential staffing agencies. This removes the need to educate the agency on market trends, threats, and particular business requirements.

Although it is certainly beneficial, it is less critical that the recruiting agency has a deep understanding of the technological aspects of the goods or services of business and much more essential that the agency has in-depth knowledge of the category of industry, the status of the company, recent trends, opportunities and threats in the market.

Co-Employment Issues

What checks are in effect in case a government audit is required, the client company would not end up being reported as the "employer" of the applicant. Several weeks earlier, when Microsoft battled a fight with government agencies on this topic, there was an event. You want to make sure one is taking sufficient steps to protect the company.

Capacity and Volume Recruitment

Ask how many advisors they have currently stationed at customer locations. Ask them for some evidence if one wants to be extremely thorough (for example, using 10,0000 per month as an average cost per consultant, if their bank statement shows $1000K payments in a month, that means they have approximately 10 consultants). If a person wants to be extremely thorough, ask them for some evidence.

Also, submit a list of new consultants employed in the previous 12 months. This will assist to recognise on an active basis the "volume" of business they do. For example, if they currently have 2000 consultants, but have put 10 over the last 4 months

Have a better description of what one organisation needs

Be as clear as possible with staffing priorities when initiating negotiations with a prospective staffing agency. Will I need to fill a role in the near future? In the long term? In permanence? Or a mix of the two? And share the information if one has any special criteria, such as federal or state background checks.

You need to ensure that the commission's recruiting focus aligns with both the types of hires needed based on the preferences and hiring goals. If a person is trying to recruit full-time workers, this is absolutely critical because one may want to avoid companies that mainly position short- and long-term contractors.

About the Author:

Sunny Chawla is a Managing Director at Alliance Recruitment Agency. He specializes in helping clients for international recruiting, staffing, HR services and Careers advice service for overseas and international businesses.

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