What are temp agencies? This is an important question when it comes to staffing businesses, special events, and more. Virtually every business can benefit from what a temp agency has to offer. It’s one of the reasons why you should familiarize yourself with what they are and how you can use them.

Understanding more about what are temp agencies will allow you to make improvements to your operations and the bottom line. They can be called at any time and many specialize in providing various types of employees, providing you with convenience.

What Is a Temp Agency?

A temp agency is a third party that provides labor in certain categories. Some agencies will provide day labor, such as janitors, sign holders, and others. Other agencies will provide administrative support, nurses and doctors, and other types of help.

What are temp agencies? The definition can vary, though they will provide the labor for a flat hourly rate. The rate that is paid by the company encompasses the wages paid to the employee as well as taxes. Most temp agencies have dozens if not hundreds of employees available in order to fill the needs of a company, often at a moment’s notice.

Who Uses Temp Agencies?

All sorts of different companies can benefit from temp agencies. Cleaning companies might call a temp agency in order to schedule a cleaning crew to come out and help to clean up an event or venue. Restaurants might call a temp agency for servers, bartenders, and even cooks. Corporate companies might also rely on a temp agency for a receptionist, personal assistant, or other office staff.

Virtually every company can use a temp agency in one capacity or another. If there is a large convention or special event that requires more staff, a temp agency will be able to provide the staff so that there is no need to hire staff only to let them go once the event is over.

What Is the Cost of a Temp Agency?

What are temp agencies’ costs? The cost of a temp agency varies. Much of it depends on the type of employee that is needed as well as the state. For example, states where there are unions, such as California, will have higher hourly rates. The hourly rates will generally start at $15 an hour and go up from there.

One thing to remember with the cost of a temp agency is that it’s all-inclusive. The hourly rate includes all of the Social Security and federal taxes that need to be paid. If you pay $20 an hour for a temporary employee, it is the only cost that you pay. It doesn’t work the same way as your payroll employees. When you have an employee on payroll, there are a lot of hidden expenses with them. You have all of the state and federal taxes to pay for them, benefits, worker’s compensation insurance, and much more.

When you learn what are temp agencies’ costs, it’s easier to budget because there are no other expenses associated with them.

5 Reasons to Use Temp Agencies

1. Reduce the Hiring Process

The hiring process is a time-consuming one in many instances. There is the time to advertise for the position, schedule and conduct interviews, and make a decision. Depending on the number of candidates and the level of the position, this process could take weeks or even months.

It has been estimated that the hiring process is 23 days and longer in some instances. By calling a temp agency, the hiring process is dramatically reduced because of being able to get someone into the position right away.

2. Gain Qualified Individuals

When you discover what are temp agencies, you will find that many specialize in one industry. This allows you to work with an agency that specializes in food and beverage staff, office staff, medical staff, or some other type of staff. As such, it allows you to gain confidence that someone with experience will be sent to your location. It allows you to place an employee into a position that does not require a lot of training, thus improving productivity.

3. Reduce Costs

The costs of hiring employees can be high. You not only have the cost of wages, taxes, benefits, and insurance to deal with but the cost of the hiring and training processes. By the time you are done with hiring an employee and onboarding them, you could have spent more than you even realize.

When you choose to discover more about what are temp agencies, you will find that they are the more affordable option in many instances. It will allow you to reduce your HR and payroll costs.

4. Grow a Business

Growing a business takes manpower. If you run a promotion and don’t have enough labor to follow through on the customer service aspect, it’s difficult to grow. Relying on a temp agency will allow you to get the labor needed to focus on your operations.

5. Minimize Paperwork

There are a lot of different components to dealing with a large staff of employees. You have paperwork that needs to be completed to get them into your system. From there, you have daily paperwork of timesheets and payroll. This can burden your office staff and reduce efficiency. By utilizing a temp agency, they do the paperwork for you. The only thing you have to submit are the time sheets.

Summing Up

What are temp agencies? They are the saving grace that many businesses need when someone calls out, there is the need to hire a large number of people for a short period of time, or to provide support until permanent employees are hired. When you need a temporary employee, take the time to connect with a temp agency for support. Have you ever used a temp agency? Identify how you benefited from them in the comments below.

Image from depositphotos.com.