How to Hire from a Temp Agency

Picture of people representing temporary staff

A comprehensive summary of everything you should know about how to hire from a temp agency. Learn about the types of temporary staffing, how charges are worked out, the potential business benefits, and more. 

 What is a Temp Agency?

A temp agency or temp staffing firm is a type of recruitment agency that places candidates into both short- and long-term contract jobs.  Companies of all sizes hire from a temp agency because it is a flexible, low-risk staffing solution offering access to specific skills quicker than most other types of hiring staff. 

Is temp to hire a good idea? 

Whether temp to hire is right for your business will depend on the urgency of the need, the type of role, and the duration of the post.  Hiring a person on a temp-to-hire arrangement allows you to see their potential performance and impact before any permanent hiring decisions are made. If you have a short-term need or a lack of resources to employ direct, then temp-to-hire is a good option.

The Benefits of Hiring From a Temp Agency

When using a temporary recruitment expert, you will benefit from their immediate reach and access to a vast pool of thoroughly vetted talent. It can save valuable time and help you identify the best candidates for the role quicker. 

Less administration

Hiring temporary workers means less administration for your business. Because temporary workers are employed via a temp staffing agency, the staffing firm will handle payroll, pre-employment checks, and more.

Faster hiring process

Hiring from a temp agency often makes it quicker to find the best, most experienced candidates for a role. Temp staffing solutions excel above direct hire staffing when there is an urgent, immediate need to fill a vacancy.  

Immediate access to skilled temporary workers

When using temporary staffing specialists, you get access to a massive network of candidates. Many of whom have a track record of successful assignments. Choosing to hire temporary workers can give you support for your business during busy periods, particularly when you need to cover staff leave or short-term projects. You can hire temp workers when new skills are needed that don’t currently exist in your team as well.

Related Blog: Read a complete list of the Pros and Cons of Temporary Staffing here.

The Difference Between Temporary and Contract Workers

A contract worker is also classified as an independent contractor, and they are paid directly by the company they work for. Whereas, a temporary worker is typically hired by a third party, such as a temp staffing agency; and the hiring agency pays their wages.

There are vast differences in the types of work performed by a contractor versus a temporary worker. A contract worker is usually paid a flat amount for completing a specific project or pre-determined objectives. A temporary worker is generally paid an hourly wage and provides services on a flexible or as-needed basis. 

Not sure whether to hire from a temp agency or use a contract worker?

How to Hire Temps – FAQs 

We answer your most frequently asked questions about how to hire from a temporary staffing agency.

Is a temp agency considered an employer?

A temp staffing firm is an entity that hires temporary workers. The staffing firm is viewed to be the employer of record, and not the end-client company.

What is the difference between a staffing agency and a temp agency?

Both temporary hiring agencies and staffing firms provide temporary workers to clients. A temp hiring agency will typically only offer temporary staffing services. Whereas a staffing agency provides a range of staffing solutions to meet both long and short-term hiring needs. If you want to hire staff on a contract-to-hire basis or potentially look at full-time employment in the future, a staffing agency can help with all of this and more.

How much do recruitment agencies charge for temps?

There is no fixed rate for hiring temps from a recruitment agency. Several factors will define the cost of their services. These include:

Local State Laws – Taxes and mandates vary significantly from one state to the next.

Volume/Number of Positions – Temp agency rates are lower if placing 25 people vs. 1.

Level of Positions – Low-end roles are easier to fill, requiring less recruiting time.

Contract Duration – Longer-term contracts often attract lower markups vs. short-term.

Pre-Employment Checks – Skills tests, background, and financial checks; they all impact temp agency fees.

Other requirements for a specific candidate or position may impact the overall cost of hiring from a temp agency.

Are temp agency employees independent contractors?

From the client’s perspective, they are classed as temp agency workers. However, to the temp staffing firm who supplies these people to their clients, they are classed as employees. On the other hand, independent contractors will be directly engaged by a company and paid a flat fee for their services relating to a specific project.

Why do employers hire from a temp agency?

Companies use flexible staffing firms to find and hire suitable people on their behalf. Temp-to-permanent hiring is also used when a company develops a more long-term requirement or the individual has proven themselves to be a good potential employee. 

Why do companies hire from a temp staffing agency?

Using a temp agency to hire staff gives business owners workforce flexibility without having to invest their own time in the hiring process or provide a long-term employment commitment.

  1. Reduce operational overheads
  2. Saves time. Staff come with existing skills and only minimal training is needed
  3. The temp agency will handle onboarding and payroll services
  4. Leverage the agency’s reach into a pool of quality, pre-vetted temporary staff
  5. Reduce overtime demands and costs internally
  6. Cover short-term staffing shortages due to unplanned leave or absence
  7. Get immediate access to short-term skills for a specific project or task

Finding The Best Temporary Agency For You

Temp staffing is a low-cost, speedy way to boost your workforce numbers flexibly, as and when your business needs the extra help. 

If you need to hire temporary staff, it’s always good to know what skills and experience you would like the individual/s to have. Consider their potential working hours, whether remote working is an option, the period of the placement, and roughly how much you want to spend.

A temp staffing expert will quickly establish key facts about the role, candidate requirements, and the terms. They can then find the most suitable individuals, with the right skill set and availability to meet your needs.

Need to hire from a temp agency? Contact us today for an initial chat.

About Pete Newsome

Pete Newsome is the president of 4 Corner Resources, the nationally acclaimed staffing and recruiting firm he founded in 2005. His mission back then was the same as it is today: to do business in a personal way, while building an organization with boundless opportunities for ingenuity and advancement. When not managing 4 Corner’s growth or spending time with his family of six, you can find Pete sharing his sales and business expertise though public speaking, writing, and as the host of the Hire Calling podcast.