Key Requirements to a Startup Staffing Agency
Setting up an efficient startup has become even more vital today when the IT sector is witnessing numerous unicorns. Companies are attempting to boost their productivity through a variety of methods. Contracting staffing agencies are one of them. Startup recruiting firms specialize in identifying and attracting top talent for emerging companies, helping them build a strong foundation for future growth and success. We’ll discuss the advantages of doing so in this post; and what to look for when selecting the ideal recruiting firm.
Staffing Agency: Why Is It Profitable for Startups?
A staffing agency is a company that allows you to hire its employees on a temporary or contract basis.
Employee recruitment, retention, and dismissal are all handled by these organizations. Staffing agencies cover taxes, social security, and other associated costs. Furthermore, such firms do thorough background checks on their employees, including credit history, education, and other factors. All the client company needs to worry about is to indicate the number of employees it requires and pay their rates.
Let’s now discuss the staffing agency startup costs. Businesses typically pay an hourly rate determined by a recruiting agent. According to various sources, such companies often charge between 25 and 50 percent of each employee’s income.
Firms that provide employees in a specific niche have recently gained an advantage over temporary staffing agencies. Information technology is one such area, and recruiting organizations specializing in this field may even have a narrower focus. You can find programmers for startup in web development, mobile development, artificial intelligence, and other niches.
The following are some of the benefits of using recruitment agencies for startups:
- Ability to quickly recruit staff
It is a significant advantage for fast-growing startups. With the emergence of new business challenges and the critical need for a workforce, recruitment services are becoming more useful than ever.
- Access to highly qualified employees
Startup recruitment agencies care about their reputation and make every effort to employ only the best professionals. Such companies spend their time and resources to provide startups with the most promising talents.
- Significant savings
Startups typically have limited resources. Recruitment agencies offer a workforce at more reasonable prices than a self-gathered in-house team.
- Possibility of a short-term and long-term collaboration
Staffing agencies allow businesses to hire employees based on their needs and development stage. Such flexibility enables companies to hire specialists for any convenient period based on their workload.
Reasons to seek the startup staffing agency services, IT recruiter duties include the following:
- The pressing need for a new workforce;
- The necessity to expand the team quickly;
- Limited budget for in-house employees maintenance;
- The requirement for workflow consistency;
- The demand for devs with a specific skillset.
As you can see, the startup staffing agency services are in high demand among businesses for a reason. This approach to work opens up many benefits for new and growing companies. In general, the world of recruitment is expected to move toward a remote style. As per the study, 64% of respondents gave preference to a distant form of collaboration, and 57% believe that contactless recruitment will become even more popular due to the pandemic.
Following that, we’ll talk about how the recruitment agency for startups organizes its work process.
How Do Staffing Agencies Work?
We have introduced you to the main benefits of working with staffing agencies. Let’s take a look at how recruitment firms structure their work processes to have a better understanding of this collaborative approach. Establishing cooperation goes in several steps:
Step 1: The startup reaches the recruiting agency.
First, you have to choose a niche, like a startup company’s information technology staffing. Then you make a list of all the requirements for your type of work, including the number of employees needed, the duration they’ll be working, and their salary level. The tech staffing agency starts seeking employees based on your specifications, namely: posts vacancies.
Step 2: Interviews with potential candidates.
When candidates reply to job openings, the recruiting firm conducts interviews, explains job requirements, and provides potential employees with working conditions information. The agency then shortlists the individuals based on the outcomes of the meetings and completed test tasks, among other factors.
Step 3: Coordination of employees for their job positions.
After the recruitment firm has narrowed down probable applicants, it must work out all the specifics with you. The client gets the last say. The startup’s owner is the one who chooses whether or not particular employees are suitable for him.
Step 4: Bring contracts to a close and pay for services.
The recruiting agency is typically in charge of all documentation, including contract management. As previously stated, staffing firms are also responsible for paying taxes, social security expenditures, and salary payments.
The final step is the start of productive collaboration.
Staffing Agencies vs. In-house Recruiting
We cannot but mention in-house employee hiring in contrast to recruitment agencies. We have prepared a table for you, which contrasts these two approaches with their pros and cons:
The Most Popular IT Positions That Staffing Agencies Can Handle
So, you’ve decided to form a team for your IT startup. What kind of employees will be most crucial to your company? We’ll discuss the main specialties below.
It is a fundamental specialist for any quality startup staffing company software development. You can find an expert with knowledge of the programming language and frameworks you need and relevant experience in your field. Dedicated developers will work exclusively on your project, considering all your requirements.
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It is the person who will take on the technical side of your startup. The Chief Technical Officer will steer your projects in the right direction, oversee the development team and be responsible for developing a quality product.
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A project manager is also a necessary component of any startup. It is an expert who will supervise the work process and assist the team in achieving the goals while adhering to the requirements and deadlines.
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It is difficult to overestimate this specialist. First, the UX/UI designer is responsible for the visual component of your product. Second, this expert will also help make your software easy and convenient to use.
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Once you have developed the product and provided it with a high-quality visual component, it will be equally significant to bring it to perfection by fixing all the bugs. A quality assurance specialist will help with this.
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These are the core specialists needed by both an information technology temporary staffing agency startup and a permanent one. Therefore, you should take them into account when starting your business.
How to Choose a Startup Staffing Company: Tips from Mobilunity
Let’s assume you’re a startup considering employing a staffing agency. What should you look for to make the right choice?
Here are five things to think about when picking a startup recruitment agency for your company:
- Cost of services. In this case, you need to follow the rule of the golden mean. Too low prices are disturbing, and too high are even more frightening. Examine offers from various recruiting companies in your niche to determine the typical pricing for the services. You will have a better understanding of the market situation this way.
- Staff. Assess your workforce requirements realistically. When it comes to recruiting for startups, the significance of each team member is hard to overestimate. You should carefully hire as many individuals as you need to carry out your company activities.
- Customer base. It is worth choosing those recruitment agencies that already have customers and can share successful cases. But when there are too many clients – this is also not the best sign – the recruitment company may not have enough time to provide you with quality services.
- Feedback. Read up on your preferred startup recruiting agency from a variety of sources. These can include forum posts, articles on specific websites, and more. A professional contractor should listen to his clients and change his internal work procedures appropriately.
- Company values and niche. Find out what your chosen recruiting firm specializes in and what its values are. Do they adhere to work ethic? How is communication in the team? These elements have much impact on fruitful collaboration.
Mobilunity – Your Reliable IT Recruitment Services Provider in Ukraine
For the last 11 years, we have effectively provided expert IT recruiting consultancy services. Clients of Mobilunity come from more than 15 countries around the world. We successfully implement projects in various niches, including web, mobile and software development.
We employ the principles of the three R’s in our work: recruit, relationships, and retention. These words, we believe, speak for themselves. So, let’s create quality products together!
Are you a tech startup in need of top engineers? We will help you find them!
All salaries and prices mentioned within the article are approximate NET numbers based on the research done by our in-house Recruitment Team. Please use these numbers as a guide for comparison purposes only and feel free to use the contact form to inquire on the specific cost of the talent according to your vacancy requirements and chosen model of engagement.
