employment agency insurance

Recruitment Concerns and Employment Agency Insurance

The primary objective of a staffing agency is to help businesses find employees to fill certain open positions. These agencies often select their candidates by combing through a number of applicants, hopefully selecting the best-qualified workers. Things often work out satisfactorily, but on occasions, when issues arise, particularly those resulting in a claim or lawsuit, the agency will need the protection of employment agency insurance to help settle any judgments against them.


Selecting qualified candidates

Businesses that employ a recruitment agency are looking for someone capable of separating the better applicants from the poor ones and sending out only the most qualified people. This often involves enlisting the company’s human resources department, as chances are that it will then be done more efficiently and in a timely manner.

Some companies may receive results slower than anticipated, and with deadlines to meet and obligations to fulfill this tends to cause some frustration. But depending on the type of employee being sought, particularly regarding any necessary skills involved, there’s always the possibility that the type of applicants right for the position may not always be available.

The person that they eventually place with the client pays the recruitment agency, which typically will receive a percentage of that person’s first-year salary (for all the people they successfully place). Business owners naturally want to make sure that they’re getting the right person for the type of salary involved. The owner always has the final say, but the agency may also, on occasion end up spending time interviewing applicants who aren’t necessarily the right fit for the position being offered.


Placement of recruits can be a challenge

When dealing with a recruitment agency, the simple act of finding the right employee can be a cause of concern. For one thing, the best candidates don’t necessarily use an agency, and are instead networking, using headhunters, and sending out resumes to potential employers. Therefore, the task of getting a perfect candidate match by using an agency can pose something of a challenge. Still, many successful matches do emerge from this arrangement.

Applicants may at times feel like they’re being put into positions and assigned to companies that aren’t a good match for their skill sets simply because the recruitment office thinks it might work out. There’s a lot of risk involved in recruiting employees for several different companies, and maintaining employment agency insurance is one way to help to mitigate these risks.