Why do businesses use staffing companies to hire contractors? This is primarily due to the dangers of co-employment. If a business hires a contractor to do the same work as an employee but does not pay them benefits, it could be held liable for things like stock options and benefits.
This risk can be reduced by placing a buffer agency between businesses. It is also the reason that HR and the Employer of Record in Brazil recruiters rarely get involved in contractor selection. Procurement is usually responsible for hiring contractors.
- The other explanation is that staffing organizations enjoy the benefit of economies of scale and broadness. They can do a better job than a single recruiter or group within a large company because they have more recruiters hiring people with the same skills for multiple companies in multiple cities.
As a result, businesses would rather pay a little bit more to outsource the hiring and management of contractors in exchange for lower costs and less risk.
The professional employer organization in Brazil and recruiting services have grown in recent years. At first, they collaborated with consultants who acted as linkages between candidates and employers. The employers have provided their contact information and all information regarding the position.
After that, the consultant was responsible for examining the candidate profiles that corresponded to the openings and the procedures for recruiting. The consultant then arranges an interview, classifies the applicants, and lists them accordingly to hire developers in Brazil. The employer agrees to this service by giving the agency one-twelfth of the candidate's annual salary. Today, all recruitment agencies offer online services.
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