What is temporary staffing?
Temporary workers are hired for a specific period of time or for a specific project rather than being hired on a permanent basis. The temporary employee works for the client firm but is paid by a third-party staffing firm. Temping is a three-party agreement that involves a third party, an employee, and a client company (also called temp or associate).
It has two different revenue models. Typically, a staffing agency earns a portion of remuneration ranging from 10% to 20% of the employee's wage, or a set monthly fee for each employee placed. Temporary workers operate from client firms' facilities but are paid and benefited by temp agencies.
Technical staffing agencies help find temporary workers while saving employers time and money so they can focus on other business aspects.
Sometimes employers looking for resumes may have projects that require a specialist, or someone with certain expertise and If it’s a temporary project that will only take a certain amount of time to complete, it doesn’t make sense to hire them on a permanent basis.
A temp agency can set an employer up with a skilled staffing expert and save their time by weeding through hundreds of resumes, checking references, and taking calls from candidates who may or may not be qualified.
Permanent employees have additional costs beyond their income, such as health care benefits, retirement plans, sick days, vacation pay, employer taxes, etc. An employer does not pay any of this while using a temporary staffing agency; instead, they pay them for the work they have completed, with no additional fees.