How Does a Temp Agency Work?
How does a Temp Agency work? The operative word for understanding the answer to that question is “middleman.” The Temp Agency is the middleman between the employer and the employee.
How does a Temp Agency Work? The Temp Agency can be said to serve much the same function as a Company’s personnel department. They hire, screen, and even sometimes train, employees and make them available to their clients as temporary employees. This allows a company to make use of a temporary employee to fill a slot made vacant by sickness or even vacation. It also creates a pool of employees that can be quickly tapped for a special project or temporary need for additional help.
The Temp Agency acts in very much the same manner as an employment agency in the beginning stages. They advertise for employees like any other employer and conduct interviews and prescreening to qualify applicants for positions. They create a pool of employees that are available for work and have some idea as to the quality and skill level of these employees. Once the employee pool has been created, the next step is matching this pool with prospective employers.
The second stage of the Temp Agency operation is finding employers in need of help. This help might be of virtually any time duration. Some temp employees are needed for one day; some might be needed for months. Regardless of the time, the client employer has a need and the Temp Agency matches this need to a specific employee. The employee is then notified of the position and sent to report to the employer for work.
In most cases, the employee remains in the employ of the temp agency during the duration of the job. The hours are reported to the temp agency that pays the employee and is responsible for all taxes and other requirements of employment. This frees the client company from this responsibility. They simply pay the Agency for the services rather than paying the employee directly.
The major difference between how an employment agency operates and how a Temp Agency works is the idea that the jobs are considered temporary. This is not always the case, however, and often temp employees might be eventually offered regular positions with the client company. This creates a constant turnover in the Temp Agency employment pool. Although this does create a need for constant recruitment of new temps, this is one of the advantages of the Temp Agency concept as it offers a good source of employment for people entering or just returning to the job market. It also provides a good source of employment for people in need of part time work or with schedules that preclude full time year round employment.