More than two-thirds of US hiring managers, 68%, report using staffing firms to recruit new staff, cover seasonal workload fluctuations and fill in for absent permanent employees, according to a survey released today by Indeed Flex.  

However, 70% reported low fulfillment rates due to difficulty finding the right workers. 

The survey found that 61% of businesses that use staffing firms reported working with two or more providers, but 61% of hiring managers felt these companies lacked visibility into performance and costs. 

Top reasons why businesses use staffing firms include: 

• To recruit new staff, 44.5% 
• To cover seasonal fluctuations in workload, 43.4% 
• To fill in for absentee permanent employees, 38.6% 
• To find specific skill sets, 32.6% 
• To reduce labor costs, 29.1% 

When asked about the frequency of staffing firm use, 53.4% of businesses cited occasional to frequent use, 14.4% said they rarely staffing firms and 32.2% reported not using them at all.

The survey also noted the benefits of integrating a modern vendor management system, which provides performance visibility and centralized management of multiple firms.

Additionally, 52% of survey respondents said they spend $10,000 to over $50,000 annually on VMS software. 

“Rising costs and stretched budgets force businesses to lean on agencies to fill shift gaps,” Indeed Flex CEO and co-founder Novo Constare said in a press release.

“Businesses rely on temporary staff as a vital resource. Having the flexibility to staff up or down as the business’ needs change proves to be a lifeline.” 

The poll includes responses from 1,000 US hiring managers and was conducted in August.