Before looking for temp employment agencies, you need to understand your companies needs and understand the reason you would want to use a temp staffing service. Some of this is covered previously on our page on finding the best temp agencies. To help understand how best to work with temp employment agencies you need to look at 3 things, costs, benefits and how to use one successfully.
Before tackling this issue, let's get a definition of a temp service. A temporary employment agency provides people to a company for a fee. Those people are hired and employed by the temp agency but work at the client site and are directed in their day to day work by the client. There is in effect a co-employment relationship.
Now moving on to the cost. Temp agencies are paid to find and place people at a client's work site. They are responsible for payroll and HR administration. Therefore, the client hiring that employee pays fees for these different services. The fee is rolled up onto one fee and you are billed for each hour the employee works. This fee paid over and above the hourly rate is called a markup rate or when it is an all inclusive rate including the hourly rate it is called a bill rate.
There are a number of benefits to using temp employment agencies and here are a few;
These are just some of the benefits of using a temp agency.
There are 2 ways to go with temp services, you can hire one that is a local generalist and can fill a variety of positions or you can find a specialty agency that can find you a lot of type of person. To be successful you need to know what you need in a temp service.
Local or regional agencies are often more generalists and are usually smaller agencies, with more flexibility and are locally focused. They know the local markets and are keyed in on employment trends of the local market. Here's a summary of the benefits of using a generalist temporary staffing agency;
Specialists are more likely to be larger companies with separate divisions. For instance many national chains now have a division that does clerical, legal, technical, light industrial and so on. This means each of those divisions has people who specialize in finding just that type of talent. Here are some of the benefits of using a specialized service;
If you need lots of bodies to put to work and cost or time is your biggest driving factor, the larger specialized firms are the way to go. If you need personalized service and 'fit' is important to your company as well as function, the stick with the smaller local temp employment agencies.