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Why Hiring From A Temp Agencies Makes Sense

By Adrianna Noton

There are many good reasons as to why hiring from a temp agencies makes sense. There are a lot of costs associated with Direct hires. Some companies prefer to uses temp agencies to first try out their candidates before having to absorb these costs. When taking on a direct hire, companies are responsible for the initiation recruiting costs. Then once they select a candidate, there are certain on-boarding costs associated with every new employee. Then there are of course the on going costs of the employee which include salary, heath-care and benefits.

There are some costs to bringing on a temp but they are nominal when compared to a direct hire. Employers will pay a fee to the temp agency for acquiring the temp. Temp agencies have certain processing fees on top of what they charge for their temps. These sometimes include time card and invoicing fees. Beyond these fees, there is not much more costs an employer has to pay.

In many cases, bringing on a temp is the best cost scenario for a company. If an employee is out on vacation and a replacement is needed, then a temp is the best fit. Or if an employee is out on an extended leave, a company can look to a temp agency to help them fill in the gap. A lot of times, temps are needed for special projects that are on a long term basis. Companies will hire temps when they are short on staff and need certain projects to be completed.

In many situations, a temp position can turn into a permanent job. This is often a way for companies to test out a potential new hire. They are usually given up to three months to perform the duties of the job. And if all goes well, then the company will extend an offer to the temp. The temp agency will get a big bonus as a result of the temp getting hired. This will also result in a higher salary for the former temporary worker.

Many temp agencies now offer benefits which are worked into the billing rates to their clients. In some cases, the temp has to work a certain number of hours before they are eligible for benefits. In other case the benefits are available right away but will be deducted from the temps paycheck. The companies that hire temps save a lot of money by not having to pay for insurance.

Temps are a flexible hiring option for companies. If a temporary employee is not working out, the company can simply ask for a replacement. It’s a much longer and costlier process to fire an employee.

Many companies hire temps as floaters as well. This is when a temp floats from one department to another. It is great for the temp as well as the company. The temporary worker becomes more valuable to the company by being able to acclimate to different departments within the company. And for the company, this allows them to fill in empty spaces without having to worry about adding on a new hire.

There are many reasons why hiring from a temp agencies makes sense. In most cases, the cost savings are substantial to hiring a new employee. And temps are now eligible to get certain benefits depending on the temp agency. It is also an excellent way to test out a candidate before hiring them to do the job.

Every company has its problems, HR consulting can help resolve conflicts.

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Article Citation
MLA Style Citation:
Noton, Adrianna "Why Hiring From A Temp Agencies Makes Sense." Why Hiring From A Temp Agencies Makes Sense. 9 Jul. 2010. 9 Sep 2014 <>.

APA Style Citation:
Noton, A (2010, July 9). Why Hiring From A Temp Agencies Makes Sense. Retrieved September 9, 2014, from

Chicago Style Citation:
Noton, Adrianna "Why Hiring From A Temp Agencies Makes Sense"

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