Who are Temp Agencies? Definition, Pros, and Cons

When you cannot afford to hire as many workers as you need, but won’t need their assistance in a few months or even weeks, you’re in a difficult situation. That’s where the Temporary Employment Agency comes in. How can a temp agency help your business, and what do they do?

On a daily basis, Variable faces the problem of finding workers for short-term engagements with manufacturers and supply chain operations. We provide a solution to this problem by offering on-demand labor, so we might be biased. Alternatively, it means we are extremely curious to learn more about how temp agencies work, so we can assess how we measure up. This article provides you with the information you need to make the best decision.

This article will give you a better understanding of what a temp agency does, the pros and cons of it, and alternative ways to find talent.

A temp agency is what?

An employment agency, or temp agency, services businesses by connecting them with temporary and contract workers.

Companies pay temp agencies for the workers they hire for vacant roles; the temp agencies employ the workers. Employers use this arrangement to avoid hiring and firing full-time employees to fill short-term needs by providing short-term, low-commitment positions.

  Temp agencies: pros and cons

 Temp agencies have their pros

  • A temp agency offers the convenience of not having to repeatedly hire and fire part-time workers if you would instead hire and fire part-time employees. Paying a temp agency to manage your administrative responsibilities could save you from having to deal with piles of paperwork in your own organization. Since they employ the workers, the temp agencies handle all the duties and responsibilities they are expected to carry.
  • A temp agency can typically provide workers faster than one can do so by themselves. The majority of temporary agencies have already interviewed a large pool of candidates. Using their services, you will avoid having to spend time doing the usual hiring chores like filtering resumes, interviewing candidates, and other screening methods.
  • It is common to use temp agencies as a trial run for new workers before hiring them full-time.

It is a possibility to employ a temp agency employee if you think the employee has great potential. You could speak with the agency about hiring that person at your company. If you need full-time workers, this is an additional way to hire them. You will probably pay a fee for this decision.

 The cons of temp agencies

  • Contracts with temp agencies often include usage requirements, so it is possible to over staff just so you can meet their expectations.
  • As an employer, you have little control or insight into which workers will arrive. Because temp agencies mostly handle the hiring process hands-off, you rarely get to see all the potential candidates for your job. This might not be the best option for you if you wish to know all your options for candidates.
  • Part-time or full-time employees might be more incentivized to perform well than temporary workers. Temp workers expect short-term engagements, and they may consider their work at your company just another stop on their route because they are employed by the temp agency and feel secure in that. Temp agencies who do not closely monitor their employees’ performance reviews could end up with low performers on a regular basis. 

Utilizing a temp agency comes with additional expenses. It’s often more expensive to hire workers through a temp agency than to find them yourself or use one of these alternatives.

 Temp agencies and alternatives

 You can find employees yourself

You can find workers on your own, but that is the most difficult option. You have the most control over who you hire, but it has the downside of requiring more work from you. Posting job listings online as well as putting up “Now Hiring” signs across town are popular ways to recruit workers for your company. Next, you review the resumes and interview a few candidates before making a decision. 

Find contractors on your own

You could search yourself for independent contractors if you still wish to hire temporary workers, but do not wish to partner with another company. On traditional job boards, like Craigslist or Indeed, you can find independent contractors, but this requires significantly more work on your part than some of your other options. Just to find someone to work on a short-term basis becomes a time-consuming process with all the posting and following up.

You can rely on them to screen and evaluate skill sets and only introduce you to candidates they believe represent a good fit for your company. The benefit of this is it’s less work than hiring someone yourself, even though it’s more expensive. 

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