Finding temporary labor can be a challenge, especially during the last couple of months of the year. With the busy season bringing in more demands and last-minute needs, hiring managers find themselves relying on extra help from temps. The big question is, how much do recruitment agencies charge?
Breakdown of Recruitment Agency Charges for Temp Labor
Recruitment agencies, also known as staffing agencies or temp agencies, provide hiring managers with part time labor. This temp labor can be used to supplement full-time labor regularly or be used for seasonal demands and unexpected surges.
When you use a recruitment agency you will sign a contract that dictates when you will get the labor and how long they’ll work. While this takes the stress of finding people off of the hiring manager it doesn’t allow for an efficient and cost-effective temp staffing solution. If demands go down, the business still has to keep and pay the temps until the contract is completed.
Of course this is assuming that the temps actually show up to work.
So How Much Do Staffing Agencies Charge?
How much a recruitment agency charges depends on the specific agency you work with. Most charges from staffing agencies are between 25% to 100% of the employee’s hourly rate. The average charge of a staffing agency is 62.5%.
Recruitment agencies also charge large conversion and hiring fees when you want to hire a worker on full time. These fees are commonly 15-30% of the employees first-year salary. For example, if a worker's full time annual salary is $40,000, the fee for hiring them full time would be around $8,000.
This paired with the staffing fee, and more hidden fees, means there is a guessing game when using a recruitment agency. If you pay temp workers $15/hour, the total cost of that worker could range from $18 to $30/hour.
On-demand staffing apps typically have set fees, eliminating the guessing game. BACON has a set fee of 40%, 22.5% lower than the average recruitment agency fee. A set fee means you know the cost of your temps and can create a cost effective solution.
On-Demand Staffing Apps
On-demand staffing apps are recruitment agencies turned into an app. When managers and leads use a staffing app they create a shift for their unique needs. After the shift is created it’s posted to the platform and workers apply for the shifts they want to work. After a shift is completed businesses have a chance to rate and review the workers.
More Flexibility
Staffing apps allow businesses to create shifts to match their immediate needs. With BACON, businesses have no contracts or subscriptions. So they only need to post shifts when they need them. BACON creates a streamlined and cost effective temp staffing solution.
Higher Fill Rates
Staffing apps typically have higher fill rates as well. BACON’s average national fill rate is above 90%. This is achieved by workers having the ability to choose which shifts they want to work and by an accountability system. Each worker has a BACON Score, which is a comprehensive score that measures the reliability of a worker. If a worker doesn’t show up to a shift or has inappropriate behavior they’re BACON Score is affected. Businesses can see a workers score when they are choosing who to accept on their shifts.
“I would say (The BACON Score) is a great indicator for us to know who to bring in here” - Red Stag Inbound Process Lead
Works Across Many Industries
Staffing apps are a powerful tool for businesses in a variety of industries. BACON works very effectively with warehouse staffing. Because of the flexibility of BACON warehouses can match their temporary warehouse staffing to their immediate needs.
BACON also works seamlessly for event staffing and catering staffing. With the invite back feature catering and event businesses can create a bench of workers they know and trust. This way they don’t need to worry about hiring on full time but can still have reliable workers.
Benefits of Staffing Apps
- Immediate access to large pools of local workers
- No contracts
- You design your shift for what you need
- Consequences for workers who don’t show up
Recruitment agencies charge on average 62.5% fee of the workers wage. On-demand staffing apps have lower average fees and are more flexible than a traditional staffing agency. BACON creates a temp staffing model that is cost-effective, flexible and fair to both businesses and workers.
