Staffing agencies can be a great way to help companies efficiently and cost-effectively fill workforce needs and sudden vacancies. It means that a business can employ staff without the massive costs of an in-house recruitment team.
Although there are a significant amount of benefits to hiring employees through staffing agencies, it is important that all employers approach this strategy with caution. This is because staffing agencies' practices have the potential to create legal issues that could prove costly further down the line.
What legal issues can staffing agencies create?
Staffing agencies are very commonly used to find temporary workers. While this is a great way for companies to meet seasonal demands, it can also lead to legal problems. When workers that are taken on as temporary staff get treated like permanent employees — and as a result are given major responsibilities and long-term obligations — this may be considered in the eyes of the law to be worker misclassification. Employers caught in this situation could be accused of trying to avoid giving permanent workers' rights to their employees.
In addition, employers may be held accountable for any discrimination that takes place as part of the staffing companies' hiring process. It is important that all employers have good communication with the staffing agencies and make sure that they are not asking inappropriate questions on their behalf.
Staffing companies can be a great asset to any business recruitment strategy, but they must be used with caution in order to prevent employee litigation or staffing disputes in the future. Make sure to only work with reputable staffing companies to reduce the likelihood of this occurring.
Source: Houston Chronicle, "The Pros And Cons of Staffing Agencies," Candace Webb, accessed May 24, 2018