The Structure of Temp Agencies

Temporary agencies, or temp agencies, are businesses that supply employees on a short term to permanent basis to employers who have need of workers. Many of these firms also offer hr consulting for companies that are starting out and needing direction in that arena.

There are many advantages to using a temp agency for a business. For example, if you have a short range project but don’t want to hire on permanent staff to complete it, hiring a temp worker is a viable solution.

Still, if you are looking into hiring on hr consulting firms to find workers, you need to understand how recruiting agencies are structured.

Payment to recruiting agency

The way the human resource consulting works is that the company seeking employees pays the agency to locate reliable and qualified candidates for a job opening. The agency in turn looks for individuals who have the skills necessary to get the job done. This can be an exhaustive process, which is why a business may opt to have an outside company take care of this time consumptive aspect of business.

The agency will accumulate resumes and call people in for interviews. Once they dwindle the candidates to one they will contact the client company and let them know that have someone to fill the position.

If an employee doesn’t work out

If for any reason the person hired for the job doesn’t work out, the process begins again and a new person is sent to fulfill the obligations of the contract.

Who pays the employee

In a situation where the employee is strictly temp with no possibly of being hired on permanently, the temp agency pays the worker. However, in temp to perm situations, the company will inevitably pay the employee salary after a specified amount of time. This usually means that the temp employee obtained the status and benefits of a permanent employee. These workers are no longer associated with the temp agency.

1099 or W-2

The employee will have taxes deducted from their pay, however, the W-2 will come from the temp agency until the company or business decides to make the employee a permanent member of the staff. This is yet another advantage to hiring temporary workers via a recruiting agency.

What is the typical contract to perm arrangement

Most temp to perm contract arrangements offer a 90 day trial period. During this time, the worker is being assessed to see how well they perform their given duties. If the employee works out, the company makes arrangements with the hr consulting firm to secure the worker permanently. When they make this decision, a final payment is made to the agency per their original agreement, and the employee becomes an official member of the staff.

Over 90% percent of businesses hire staffing services to locate their employees. This indicates that there is a real need for what a temp agency or human resource consulting firm has to offer.

If you are looking for a temp agency that will provides a wealth of experienced and qualified workers, then be sure to do your research. Some human resource consulting firms are better than others at supplying reliable employees. When you locate a company with a brilliant track record, stick with them for all your temp agency needs.

This will ensure that you maintain a full cache of individuals who can perform any job as requested. You will also have at your disposal, savvy workers, both temp and permanent, when you need someone in your office to take care of your every day work related needs.

This fact alone should make hiring an hr consulting firm a business priority.

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