The Pros and Cons of Using an Employment Agency for Temporary Staff

An unstable economy has led business owners to explore other means of keeping up with a demanding workload while keeping costs down. One of these ways is by using an employment agency to match them with qualified temporary workers.

According to research, a typical employment agency will charge 25-40% of the new hire's first year pay to the company choosing to use their services. Conversely, the termination cost associated with a first year entry level permanent employee can equal 30-50% of the employees annual salary when all expenses are considered.

An employment agency charges the employer a fee, usually an hourly rate, for which the agency will send a trained individual to their job site for a specified amount of time. If the length of employment cannot be determined, it's not unusual for the employer to tell the agency that their services are no longer needed at a moment's notice.

If the candidate doesn't fit the job, the employer can simply request another worker. An employer might need these types of employees for a new project that requires more manpower, wants to save money but needs full-time employees without paying benefits, or needs a skilled individual to fill in for another employee.

Before choosing an agency, be sure to seek out any that specialize in filling positions within a certain industry. Next, ask the agency a few questions and request the following material:

• Detailed rate sheet
• Information on the agency in addition to their website
• Ask for references
• Sample of the entrance test
• Any requirements they have for employment

It's important to be sure that the agency is a fit for your company before accepting an employee. If time permits, you will likely want to interview each and every candidate as well.

Below are some pros and cons to using an employment agency to hire a temporary work force:

Pros:

No Commitment

Because you are hiring from an agency, if you find that the employee is not cut out for the position, you can simply say so and have the agency send another, more qualified person.

Cost Savings

There is no cost associated with training as all employees are fully trained to do the work you require except for specific training for your project. Also, a business saves in not providing the employee with benefits, which are extremely costly.

Flexibility

Hiring through an employment agency enables your business to adjust more quickly to workflow fluctuations.

Less Legal Issues

Businesses aren't required to give a temporary employee any reason for terminating their employment. Businesses are also not required to carry insurance on temporary employees as it is the agency's responsibility. This makes it impossible for the temporary employee to sue the employer in the event that they get injured.

Hire

If you find that the employee that the agency sends you is a great match to your organization, in most cases, you have the option to hire them on as part of your staff. If this is something you might be interested in, be sure to ask the agency to make sure hiring one of their employees is an option.

Cons:

Time

No matter how well trained a temporary employee might be, there will always be training associated with the specific position you need to fill.

Loyalty

A certain level of loyalty is usually attained by permanent employees and may be lacking in temporary employees. Temporary employees are usually not considered to be part of the team by other employees and are sometimes left out, leaving the temporary employee to feel little loyalty for your company and a reduction in morale.

Talk about it