The Cost Of Working For A Temp Agency

Working with a temporary employment agency can be a great way to get valuable job experience, network and find a permanent job that you really love. Many jobs can start out as simple part-time assignments and turn into full-time, long-term positions, especially if the employer really likes the work you do. Some job seekers may be hesitant to seek work through a temporary staffing agency because they aren't sure if they can afford the fees. The following will break down the true cost of working for a temp agency.

Cost to the Employee

The majority of temp agencies offer their services at no charge to employees. The agency will assist with resume preparation, interview skills techniques and job skills testing, as well as seek job openings and match potential employees with the right openings. Employment agencies realize that job seekers likely can't afford to pay for these services, as many are entry-level employees or are restarting their career after a job loss or hiatus from the job market. Offering services free of charge helps the temp agency find a larger pool of qualified candidates to send to assignments, and takes a burden off the shoulders of employees. For the very few temp agencies out there that charge a fee to the employee, this is generally a one-time fee, the employee then becomes a member of the payroll of the temp agency.

Cost to the Client

This is where the employment agency makes the money they need to stay in business. Temp agencies charge a fee to the client for their services, in addition to the cost of the temporary employee's salary. This fee can be between 10% and 25% of the temporary employee's salary.This fee pays for administrative costs and overhead, testing and other costs that the temporary agency incurs to bring in qualified candidates. While this fee may seem high, it really isn't. Companies can save hundreds of man-hours and thousands of dollars by contracting out their hiring endeavors to an outside firm. For the duration of the job assignment, the employee belongs to the temp agency, and their paycheck is issued by the temp agency. At the end of the duration of the assignment, the client can opt to hire the employee full-time, or the temp agency will send them on a new assignment. If the client wishes to hire the employee before the end of the temp assignment, they must pay a fee to the temp agency.