3 Important Reasons Why Companies May Hire Temp Agencies

The main reason why a company or an employer contacts a temp agency to recruit individuals on their beheld is to fill any job openings on their company. This is because they believe that temp agencies can help them hire individuals that are the best fit for the role, and in return, individuals searching for jobs can also get a career opportunity.

The people hired through a temp agency can be hired on various bases. They provide employees who can fill full-time and half-time positions. Moreover, they also provide employees who can work temporarily or on a contract basis.

What do temp agencies do?


Temp agencies carry out the recruiting process to get candidates into their employee pool. During this recruitment process, they check the candidates’ references to have a background check on them so that any company that contacts them for the need of employees does not have to do so. Once the recruiting process begins, the recruiters go over the resumes of the employees who have applied for the various posts and shortlist them at the very beginning for those who do not fit the role at all.

The shortlisted employees then go through different interview processes to test their skills to verify whether they can perform as they claim. At this point, again, the candidates are further shortlisted and selected based on their performance.

These selected employees are then provided to the companies that have hired temp agencies for employment. The workers provided by temp agencies are the agency’s employees, but they work under the company’s directions they get selected for.

Why do companies need extra staff?

No matter how well a company plans for its future and follows the set schedule, still, staff shortages are bound to occur for any company. When these shortages occur, they can be highly damaging to the company’s performance as a certain number of people are required to run the functions and operations of a corporation smoothly.

The employees often need some time off due to various reasons. During this time, the operating costs go high for the business as the other employees have to work extra hours to make up for the employees on leave. In addition, the employers themselves are so occupied with work to meet various deadlines that they do not have time to hire new employees to help with the work. To cut down on costs and remain on schedule, companies reach out to temp agencies to hire employees temporarily.

With the help of temp agencies like, employers can focus on their company and its performance to ensure growth without worrying about the recruitment process or shortage of employees. These employees can also take on short-term pending projects and help the company finish those and other delayed deadlines. Once the company does not need these employees anymore, it can simply finish its employment with the temp agency without paying any downsizing costs. Here are a few other benefits temp agencies have to offer:

1. Reduction in overhead costs for the company

Hiring permanent employees is way more costly for a company than hiring employees through temp agencies. This is because the companies have to pay extra benefits to permanent employees. For example, the companies have to pay for their health benefits, retirement plans, vacations, and other taxes for hiring these permanent employees. This adds to the overall business cost even if the workers are needed for the short term.

However, by hiring employees through a temp agency, the employer does not have to pay any of those costs as the workers hired through these agencies do not get any benefits. Once the workers have completed their time with the company, their employment ends with the company, and they move on to the next job.

2. The company does not have to pay for workers’ overtime


The companies have to ask their permanent employees to work overtime once they are burdened with work. Sometimes companies can be faced with deadlines that they have to meet no matter what. During this time, they ask their workers to stay overtime to meet those deadlines. The workers demand extra payment for working extra, and the companies are forced to pay since they are off schedule.

This is where a temp agency can be of help. They provide employees temporarily at a low cost so you can keep up with your schedule. Then, once you are done with the task at hand and have met a deadline, you can end the employment of these employees with your company without having to pay any extra or overtime costs. This also keeps your permanent employees from experiencing burnout due to the overload of work. Hence, their performance is not impacted either.

3. Companies save on hiring and training time


When a company needs to recruit new employees, selecting suitable candidates is a long and time-consuming process. Moreover, it has to then provide training to these employees as well regarding the work. This process requires a huge sum of investment of both time and money in this situation which companies are often short on.

Hiring employees should not come at a cost when you only need them for a few months. Temp agencies will help provide you with works in this situation who are already trained for the work they have to do. Once they are done with the work they were hired for, the company does not have to worry about paying them any extra money for insurance or the period they have to find another job.

Moreover, there is no conflict because the employee knows they have to work for a certain period, so they are well aware of their employment period with the company. The company too cannot ask the worker to work for more time on their own, raising conflicts. They will have to ask for an extension of the employee’s employment through the temp agency, which is also done with the employee’s willingness; hence the chances of a conflict are minimum, and the matter can be handled smoothly.

About Angelina Johnson