Using temporary workers is an efficient way to maintain a resilient workforce. Temp labor can be used to meet high demand during seasonal spikes or used consistently to supplement full-time labor. Many businesses in a variety of industries use temp workers, but how do temp agencies work?
This guide explains the process, benefits, and alternatives to traditional staffing agencies. Helping businesses make informed decisions and finding staff for their unique needs.
What is a Temp Agency and How Does it Work?
A staffing agency or temp agency is an organization that connects workers to businesses on a temporary basis. Businesses sign a contract with the temp agency that dictates how many and when the temp workers are needed.
The business provides the temp agency with the job requirements. The staffing agency then recruits and screens the temp workers. The workers are then placed at the business on a temporary basis until the time dictated by the contract is over.
How Temp Agencies Operate
- Businesses provide job requirements.
- The agency recruits, screens, and hires temp workers.
- Workers are placed at the business on a temporary basis.
Industries that commonly use temp labor include, warehousing, cleaning, retail, catering, events and general labor staffing.
Benefits of Using a Temp Agency
There are many reasons businesses choose temp agencies for their staffing needs. Some of these key benefits include quick hiring, flexibility, and reduced administrative burden.
Temp agencies maintain a pool of pre-background checked temp workers. Having this pool of workers speeds up the process to find temp employees. Businesses have limited control over which temp workers they are sent.
With temp labor, businesses can scale their workforce based on seasonal or project-based needs. This flexibility can only be found through temp labor and isn’t possible with traditional hiring methods.
Finally, a benefit of using a temp agency is the reduced administrative burden. The agency handles the recruitment, payroll and worker compliance. This takes the burden off the business managers allowing them to focus on other things.
Key Benefits:
- Quick Hiring: Agencies maintain a pool of pre-vetted temp workers, speeding up the hiring process.
- Flexibility: Scale workforce up or down based on seasonal or project-based needs.
- Reduced Administrative Burden: The agency handles recruitment, payroll, and worker compliance.
Black Diamond finds temp workers through online staffing platform Bacon. Using temp labor, Black Diamond is able to staff effectively for their unique seasonal demands.
Costs and Limitations of Temp Agencies
Before jumping into a contract with a temp agency there are some financial and usability aspects to consider.
The cost of temp labor is going to vary depending on every agency. Many temp agencies have lists of fees, some transparent and some hidden. Typical temp agency fees include hourly markup, administrative, and conversion fees. Follow the link to learn more about how much temp agencies charge employers.
Typical Costs:
- Hourly markup on worker wages (25%–100%).
- Additional administrative or replacement fees.
- Potential conversion fees if a temp worker is hired full-time.
Staffing agencies come with limitations including limited control, restricted flexibility, unreliable workers and potentially higher costs. The solution to these limitations is found with online staffing platforms.
Alternatives to Traditional Temp Agencies
The modern alternative to traditional staffing agencies are on-demand staffing platforms. Online staffing platforms, like Bacon, allow businesses to post shifts, review workers, and adjust staffing numbers directly.
On Bacon, businesses post the shifts they need filled. They have complete control over all the details of the shift. Workers are notified of the posted shifts and apply for the shifts they are interested in. Businesses then choose the workers they want based on ratings and reviews.
Businesses control their shifts and choose workers' wages. This helps them lower costs and staff more efficiently. Where temp agencies require contracts, Bacon is contract- and subscription-free.
The Bacon platform helps find local workers. Temp labor can fill roles in general labor, event setup, warehouse picking, catering, and more.
Conclusion
Temp agencies and online staffing platforms provide valuable solutions for businesses needing temp workers. Understanding how temp agencies and staffing apps work ensures businesses can choose the best fit for their needs.
For businesses wanting flexible, reliable and cost-effective temp staffing try on-demand staffing platform Bacon.
