Purpose: The purpose of this essay is to gain insight into how companies look at recruiting through employment agencies – which the underlying rationale is to hire staff instead of employing and its advantages and disadvantages.
Method: A feasibility study followed by a qualitative study with interviews. The interview method was in unstructured form in which respondents were free to speak from their own frame of reference. A phone method was used in the booking of interviews.
Problem: In order to achieve maximum profitability, while maintaining quality and have fast delivery to the customers, companies are trying to reduce the part of capital that is tied up. It can therefore be a problem for companies when they employ someone permanently and after a period of time realizing that they no longer are in need of this person’s skills. The trend to hire staff instead of recruiting has because of this reason increased. What are the effects of this?
Audience: This study is aimed to companies who are interested in hiring staff or companies that hire staff already. But even for workers, prospective consultants and other stakeholders who are directly or indirectly related to this subject.
Results: Through this study, we have, based on our respondents, found out the underlying reasons for hiring of personnel and the advantages and disadvantages that entails. Advantages: flexibility, productive staff, avoiding staff shortages, competence and innovations. Disadvantages: lack of motivation, disloyalty, erosion of the corporate culture, morale, and that company could be in a position of dependence. Based on the survey, we have been able to draw conclusions that staff hiring also is a competitive advantage. It is important for companies to integrate consultants into the company with the staff to create a stronger sense of community. It is also important to have clarity on consultants to be recruited.