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What is a Temp Agency? – Get All The Information About Temporary Hire

Filed in Articles, Education by on September 8, 2021

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– What is a Temp Agency –

A Temp agency is a recruitment agency that specializes in finding positions for candidates searching for temporary work and in filling vacancies for companies seeking to employ people on a temporary basis. See details below

Everything You Need to Know About What is a Temp Agency

Meaning Of A Temp Agency

Temp agencies, often known as “temp services” or “staffing agencies,” are businesses that hire workers on a temporary, seasonal, part-time, or temp-to-hire basis.

Some temp agencies are general entities that cover the hiring and placement of several workers, while others focus on niche industries.

These boutique agencies find temporary candidates of more specialized skill sets.

Being the intermediary that connects candidates and companies, temp agencies are similar to employment agencies.

More Details

During busy periods, companies usually hire temporary workers to work on a project-by-project basis.

Similarly, candidates who are looking for work for a specific period of time use the services of temp agencies.

Although there is no assurance that a temporary position will be converted to a permanent position, in some cases, if all sides agree and there is enough work to justify hiring that temporary employee permanently, an employer may convert a temporary job to a permanent position.

How Does a Temp Agency Work?

The primary difference between temp agencies and regular HR departments is that temp agencies manage the temporary worker’s hiring, firing, and onboarding.

However, this means that the contracting company, called the temp agency’s client, has no involvement in the temporary worker’s compensation or benefits.

The client just agrees with the temp agency on the number of temporary workers that will be placed. For each worker provided, the client pays a percentage or an hourly fee.

It is the job of the temp agency to negotiate the workers’ schedules, payment, and all other important employment details.

If there is ever a problem with a client, the worker will report it to the temp agency. If a client is dissatisfied with a temp’s performance, they must reach an agreement with the temp agency, as they do not have the ability to fire the worker directly.

Whether full-time, part-time, or seasonal, all temps are employees of the temp agency. It is the agency that provides these employees with benefits, tax status, and more.

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Roles of a Temp Agency

A temp agency can play a lot of roles, but essentially the process works like this:

  1. The agency screens the workers, screening out unsuitable candidates and evaluating the skillsets of those hired.
  2. The agency has a pool of workers that come to the agency looking for jobs.
  3. Temp agency draws workers with the required skills from its pool of workers and sends them to the new temporary employer.
  4. An employer in need of temporary workers signs a contract with the temp agency. The contract specifies the types of employees the company seeks, as well as the cost paid per hour of work and other information.
  5. The Staffing agency pays the workers an hourly wage.
  6. The employer pays the temp agency based on the hourly wages of all the workers provided, plus an additional amount to cover the agency’s services.

Benefits of Temp Agency

While temp agencies aren’t as cutting-edge as today’s on-demand hiring platforms, they do offer a number of advantages to both clients and workers.

A. Importance of Team Agencies to Companies

Let’s look at how the classic temp agency structure benefits the company’s clients:

  • The agency takes the pressure off the company’s internal HR department
  • The temp agency handles hiring, firing, drug testing, background checks, screening, and even skills training
  • If the agency is a large, full-service one, it will be able to deliver last-minute skilled temps
  • Most staffing or temp agencies offer recruitment services at a fraction of the cost of traditional recruiters
  • Temp-to-hire buyout options make for cheaper onboarding processes

B. Importance of Team Agencies to Employees

 Here’s what temp agencies do for their employees:

  • Offer full-time, part-time, or seasonal scheduling options
  • Very flexible scheduling options
  • Provide short-term jobs that match employee skill sets
  • All placements are completely free for the employee
  • Provide free skills training in the industries they serve
  • Opportunities for temp-to-hire employment

Demerit of Temp Agency

Demerit of Temp Agency

Hiring or joining a temp agency, like most things, has significant drawbacks, the most obvious of which is the issue of markups.

Markups are the costs that are added to each employee’s hourly compensation. Although markups differ from agreement to agreement, it’s not uncommon for them to exceed 100% of the worker’s hourly wage.

According to HCM Works, some temp agencies have a bad habit of hiding additional fees or misleading their clients into agreeing to extra charges on top of the markup.

In light of this, it is advised that contracting clients ask questions about additional fees prior to signing the agreement. Additionally, companies should also ask for discounts for bulk hires, (when a sizable number of workers are requested).

Unfortunately, temp agency employees, or temps, are often forced to face a set of notable drawbacks, as well. For one, it’s unusual for temps to have any level of autonomy in their roles.

Oftentimes, these placements are entry-level positions that require few qualifications.

More Disadvantages 

It’s a “plus” in the sense that the agencies can easily fill the roles, but it also means that there are hundreds, or sometimes even thousands, of other workers willing to do the job. This scenario can make temps feel expendable and undervalued.

In addition to the lack of autonomy, most temps are rarely provided full-time work. Though this might be a decided advantage for some, this also usually means no benefits, like health insurance, stock options, retirement funds, etc.

As can be seen, temp agencies play a role in our economy. That said, the jury’s still out as to whether or not these firms can stay relevant as the ultra-modern gig economy continues to expand and evolve.

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Frequently Asked Questions and Answers

Frequently Asked Questions and Answers

Below are frequently asked questions:

1) Are Temp Agencies Good or Bad?

Ans: A temp agency can be both good or bad, depending on your staffing needs and the quality of the temp agency.

They’re good for businesses looking to quickly hire people to fill general positions, but will likely be a poor fit if your worker needs are more specialized.

2) How Long is a Temp Job?

Temporary jobs, by definition, are intended to be short-term. Some temp jobs may last only a few weeks or months, while others may last a year or more.

However, the exact length of the job depends on your needs as an employer or an employee’s willingness to stay on without being offered a full-time position. 

3) Should I Go to a Staffing Agency for Skilled Workers?

For all the benefits of hiring through a temp agency, there are also downfalls. Sometimes temp work can end up causing serious issues if:

  • The employee isn’t properly trained
  • The employee doesn’t show up or do excellent work
  • There’s a misunderstanding of the role, company values, etc.
  • It’s a bad fit for either party

These issues can lead to further frustrations and losses like:

  • Frustration within the business or from an employee
  • Loss of time and money for the business
  • Loss of production for the business
  • Severed relationship between the temp agency, business, or employee
  • Loss of time and money for the employee
  • Loss of reputation for the temp agency, business, or employee

These losses and issues are particularly heightened for commercial construction and manufacturing businesses looking for specialized workers. These businesses can’t afford to not have the right expertise for the job.

4) How Do Temp Agencies Work?

How Do Temp Agencies Work?

Every temp agency has its own methods and protocols; however, if you are thinking about working for one, there are a few common elements you should keep in mind.

i.Temp Agencies Charge Employers, not Employees

The first thing you should know about working for a temp agency is that being a part of their talent pool should not cost you anything.

This is because you are the product, not the customer, and you are selling your services to companies seeking for people like you. Temp agencies operate solely to link you with the appropriate clients.

Companies turn to staffing agencies when they do not want to devote resources to the hiring process.

They may not have time to advertise job openings on employment boards, look through dozens of resumes, and conduct interviews.

This is especially true if the company requires part-time or temporary employees. While personnel are needed for a short-term project, such as when an employee is on maternity leave or during high season, hiring through an agency saves time.

The company pays a fee to the temp agency to provide a pre-approved employee to satisfy their talent needs in order to save time. They then pay the agency for the work rather than the employee.

 If your agency provides any benefits in addition to your compensation, they will be provided by them rather than your employer. For the most part, this implies that the salary and benefits for most temp workers are identical.

ii. You are Employed by the Temp Agency

You are still hired by the temp agency even though you are put within a company and show up to work every day. Although the agency’s contracting company may have papers logging your time there, they are not liable for your salary, benefits, or other concerns.

The temp agency has a mechanism in place to ensure that their employees are paid on time. This is fantastic news for people who work for a temp agency on a regular basis. If you’ve previously set up your details, you’ll be able to keep getting paid regardless of where you work.

You may be able to bring certain HR issues to your place of employment, but you can also bring your difficulties to the agency. They’ll talk to the company about the problem and take the appropriate actions to resolve any complaints.

The good news is that the contracting firm can still be listed on your CV. You can utilize the company’s brand and employer recommendations to help you get a full-time job in the future by talking about the skills you learned there.

iii. The do not Offer Guaranteed Employment

The majority of people believe that if they sign up with a temp agency, they will be contacted and placed right away. This isn’t always the case, though.

You’ll almost certainly go through an interview and vetting procedure to determine your qualifications and then meet with a recruiter to discuss your objectives. The recruiter will do everything possible to place you in an appropriate position.

It is in the best interests of the temp agency to send top applicants to its clients. If a company is dissatisfied with the applicants sent by an agency, they may discontinue employing temps through that agency. The success of the agency’s personnel determines its professional reputation.

iv. You will Work with Professional Hiring Managers

Experts that work for temp firms specialize in finding people to hire. They spend their days assessing candidates and learning to spot red flags and possible matches.

These individuals also keep track of their placements’ success and improve their ability to spot good hires over time. This implies that you must be well-prepared for each interview.

Make sure you arrive at your interview with a resume on hand or send a resume ahead if you have a call or video interview planned. Even if they already have your resume, this shows that you are invested and prepared to provide whatever they may need. 

During the interview process, make sure you highlight your skills and strengths. Your recruiter might want to place you in a specific role because of this skill set or have more roles open to you because of what you can do. Be open and honest about what you can do and the contributions you can offer.

v. Put in your Effort

Not only do you want to put your best foot forward to impress the recruiter and stand out so you get placed, but you also want to do your best for the company you work for.

Your assigned employer will likely submit employee reviews of your performance and the performance of other temps.

They will compare your work to other hires. By doing your best, you can earn a positive review and a potential recommendation in the future. 

A good work ethic can help you grow your relationship with the temp agency. For example, if you do an outstanding job with a six-week seasonal position, your name will move to the top of the list the next time that the agency has space to fill.

Some people work closely with their recruiters for years because the recruiter knows that they can trust the worker and the worker knows there will always be work for them.

vii. Some Companies Specialize in “Temp to Hire”

While some people enjoy the flexibility and dynamic nature of temp work, other people want something more stable, and only work with the temp agency to cover their immediate expenses.

If this is the case, talk to your agency about any potential “temp-to-hire” positions. These are positions where the company wants to test out potential employees and see if they are a good fit before taking them on full-time. 

“Temp-to-hire” positions are ideal for companies that are considering expanding their workforce but are not sure if they can afford it or if the extra work will benefit the company.

As a temp in this situation, it is your job to prove your value to the company. Show them that you are an essential staff member who they cannot afford to lose.

If a company decides to hire you, then your contract with the temp agency will end. You will start to get paid by your new employer and receive benefits through them.

5)  Are Temp Agencies worth It?

If you’re wondering, “Should I go to a temp agency to find a job or employees?” or “Are temp agencies good or bad?” we can’t give you an exact answer.

There are pros and cons for doing temp work or hiring through a temp agency.

Traditional temp agencies have some advantages. For instance, they provide businesses with an external source of new hires, cut down on time and money spent on hiring, and provide a large pool of possible candidates. 

Individuals looking for jobs can also benefit from temp agencies. Temp agencies handle interactions with potential employers and provide access to a large number of potential jobs.

However, staffing agencies have downfalls and often aren’t ideal for commercial construction or manufacturing employers. You need recruiters to find reliable and proficient skilled workers every time the need arises, which most temp agencies can’t do.

Skillwork is a trade labour recruiting company that specifically knows and understands the commercial construction and manufacturing labour needs.

Our proven 8-step vetting process finds and places the top candidates on your site or in your facility so you can:

In conclusion, we believe this article was helpful, if yes, don’t hesitate to share this information with your friends on Facebook, Twitter, Whatsapp, and Google plus using our share button below.

CSN Team.

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