Importance of Temporary Agency and Benefits
Temporary employment or Temporary work or gigs or odd jobs will refer to an employment situation. It is a limited working arrangement only for a specific time frame depending on the employing organization’s requirements. Temporary employees are also known as a freelance, outsourcing, causal staff, interim, seasonal, and contractual. In short term, they are also referred to as Temps. A few highly skilled experts or professionals are commonly called as White-collar workers. Some of those fields are accounting, engineering, R&D (research & development), human resources, and refer them as consultants. A few executive-level positions are CSO, CMO, CFO, CIO, & CEO are filled with Fractional executives or Interim executives.
The Temp agency will help to recruit part-time or full-time temporary workers depending on various working situations. In some cases, temporary workers will also receive multiple benefits like health insurance and others. However, only the permanent employees will receive benefits from the employer as a cost-cutting measure and save money. It is not possible for each temp employees to get a perfect job with the help of a temp agency or organization. You can make use of the gig economy or the internet to get freelance work or short-term contracts similar to a permanent job. Most of the workers are utilizing the freelance marketplaces for finding the best short-term jobs. A global market to work depending on your current situation.
Temp Agency Benefits
Temporary workers are split into two different general categories. Workers can be hired in two different ways: Directly by employers and through Temp staffing agencies. The temp agency will assist the temp workers to connect with the appropriate businesses or companies to fulfill their temporary labor. A Staffing company will assist the workers to get a new job and pay a contracted amount for recruitment. Again the temp agency will pay the wages to his employees. Workers from staffing agencies will never receive benefits from the current working company for their work. This is the one of the differences for workers when hired by a staffing agency or what we also call employee leasing and when hired by a professional employer organization (PEO). Since they are employed technically only with the help of a temp agency or staffing agencies.
However, the temp agency will offer some benefits for their temp employees, but they are only minimal to utilize. A few companies or organizations will hire temp employees directly instead of contacting the temp agency. Companies may hire temporary employees only during the busy seasons to compensate for their demand. Both seasonal workers and direct temp workers will never receive any benefits from the organization. But still, some employers can provide basic benefits or perks to their temporary employees. However, permanent employees can use the available pension plan, retirement plans, and other benefits.
Temp Workers – Payment
The temp agency will take the entire responsibility for processing the worker’s payment from the company. They will charge an amount on an hourly basis to the company and take a percentage from its payment. Moreover, the temp agency will also collect the appropriate taxes from the payment of the temporary workers. This information is available within the contract or mutual agreement between the temp agency and the company. For an instance, the company will pay $25 per hour for the temp agency.
But, the temp worker will get paid only for $15 per hour for the services. The temp agency will utilize the extra $10 for each hour as an adjustment percentage. Typically, it could mark-up a round of 50% up to a maximum of 100% commission. With the help of a temp agency’s industry experience and market intelligence, you can easily create numerous important network connections. Make use of these connections for creating business development and potential cross-promotion opportunities.
Temp Worker as a Full-Time Employee
Temporary employee’s skills should match much enough with the company’s requirements during your present work. In this case, the company can offer you to recruit as a full-time or permanent employee to work with the organization. The Human Resource team of the company will get in touch with the temp agency where you had initially worked with. In turn, they may inform that the company is willing to hire a temporary worker. There is some background processes to execute during the hiring procedure. The company must pay the hiring fee and 25% of the employee’s annual salary. Some clients will test the temp workers by contacting the temp agency before recruiting them. After taking the appropriate decision, the temp agency will release the employment and allow him/her to join as a new employer.