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 temporarily. Carefully read to get the information.
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.
Check Out How a Temp Agency Works
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 skill sets 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 employees the company seeks, as well as the cost paid per hour of work and other information.
Benefits of Temp Agency
While temp agencies aren’t as cutting-edge as today’s on-demand hiring platforms, they offer several advantages to both clients and workers.
Importance of Team Agencies to Companies
Let’s look at how the classic temp agency structure benefits the company’s clients:
1. The agency takes the pressure off the company’s internal HR department
2. Temp agency handles hiring, firing, drug testing, background checks, screening, and even skills training
3. If the agency is a large, full-service one, it will deliver last-minute skilled temps
4. Most staffing or temp agencies offer recruitment services at a fraction of the cost of traditional recruiters
5. Temp-to-hire buyout options make for cheaper on-boarding processes
Learn More About The Importance of Team Agencies to Employees
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.
Disadvantages
Considering this, it is advised that contracting clients ask questions about additional fees prior to signing the agreement.
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.
Often, these placements are entry-level positions that require few qualifications.
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