Staffing agencies fill in the gaps in a business's employment situation.
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A staffing agency, also called a temp agency, can help bridge the gap for people stuck between jobs or for businesses that need to fill out the ranks but are having difficulty finding qualified employees. A temp agency has an army of workers with a variety of skills at its disposal. The hiring process is convenient for both the employee and the business because the staffing agency handles much of the paperwork.
Function for Businesses
How the staffing agency works varies from agency to agency, but the typical temp employment service company handles hiring and terminations, as well as employment taxes such as payroll, Medicare and Social Security, according to inc.com. Usually, the client only has to specify the number of workers needed, the time period they are needed for and an hourly rate, which can be negotiated.
Function for Employees
For employees, staffing agencies seek to find appropriate jobs. Most of the time the agency offers only temporary work because the client has seasonal needs. As a prospective employee, you sign up with the agency and review your qualifications and skills, and the agency looks for businesses that can use your experience.
Related Reading: Why Use a Staffing Agency?
The staffing agency earns money by charging clients for the amount of work the employee does. Often the agency receives the same amount as the employee, according to Jobseekers Advice. For skilled positions, the staffing agency might even make more than the employee. Other types of employment agencies, such as consultants or recruiters, are for businesses looking to hire permanent help. Employment consults help the prospective employee find a job in return for a cut of her salary but offer no guarantee of employment; many states have outlawed this type of staffing agency, according to collegegrad.com Executive agencies are exclusive businesses that look for talent rather than accepting applications, and charge the employer a fee for their services.
Employers often like hiring temporary workers because they typically do not receive fringe benefits, such as health insurance and retirement plans, according to Employment Spot. Temp workers tend to need less training since they are sent to the company because they already possess certain skills. Companies can also avoid many wrongful termination suits by using a staffing agency. On the flip side, employees get a more flexible schedule and can often take off long periods of time because they are not attached to any one company. Temps get to either hone their craft or develop a new one in several different environments.
In rare circumstances a temp job may lead to a full-time job offer by the client, according to Jobseekers Advice. If a temp worker receives a job offer, the agency may charge the client a percentage of the annual salary for the right to hire the worker. Many agencies include a provision to guard against this scenario.