Using temp labor is a great way to meet workforce needs. But there seems to be an unclear answer when it comes to how much a temp agency charges per hour.
This article breaks down the cost associated with temp agencies, factors that influence printing, and why on-demand staffing apps offer a more reliable and affordable alternative.
No matter the industry it’s difficult to find temporary workers. Warehouse personnel need to be reliable and cost effective. Events and catering staff needs to be flexible enough to work an unset schedule but professional enough to work in hospitality,
Although different, both industries need reliable ways to find warehouse workers or find catering temporary employees. Utilizing temp labor for hire and temp agencies gives agencies the ability to find temp workers.
Understanding Temp Agency Hourly Charges
Temp agencies charge businesses an hourly rate for each temp worker provided. This rate is placed on top of the temp labor wage.
How much does a temp agency charge per hour is built up of different parts. First there is the base pay, this is the actual wage paid to the temp worker. In traditional temp agencies this wage is predetermined by the temp agency and listed in the contract. With on-demand staffing apps, such as Bacon, the business has full control over what the workers wages are.
Next is the markup fee, this is a percentage of the workers wage that is added by the agency. This is where temp agencies make their money from. Markup fees can range from 25%-100% of the workers wage. This markup fee covers the cost to find temporary workers and conduct a background check.
Lastly, with traditional temp agencies there are going to be additional fees. These fees include administrative fees, minimum hour fees and conversion fees.
How Pricing Works:
- Base Pay
- Markup Fee
- Additional Fees
It’s important to have a solid understanding of temp agency rates and fees to ensure that a business gets quality temp labor for hire.
Factors That Influence Temp Agency Rates
The total cost to find temp workers near me depends on multiple factors such as, industry, job type, location, length of assignment and urgency of need.
Different industries require different work from temp labor and temp agency rates can reflect that. Specialized roles, such as forklift drivers or bartenders, are in higher demand and will have higher rates.
The location of the shifts may also affect the temp agency rate. Hiring warehouse personnel in an area with high-demand may come with increased rates.
The length and urgency of need also can be reflected in temp agency rates. Short-term or last-minute needs may have higher fees associated. Even though temp agencies are faster than the traditional hiring process, a last minute staffing service may charge high rates.
Why On-Demand Staffing Apps
On-demand staffing platforms often offer a more affordable and flexible alternative to traditional temp agencies.
On-demand staffing platform Bacon has transparent pricing with no hidden fees or conversion fees. Bacon charges a simple markup onto the workers wages, this markup covers the costs of sourcing the worker and doing a comprehensive background check.
On Bacon, businesses have direct access to workers. Businesses can find gig workers without an agency middleman. With features like Groups and Favorites List businesses can build a team of temporary workers they know and trust through the platform.
On-demand workers and apps are the most flexible way to staff a business. Warehouses can find warehouse workers and bring them in just when they need them to help meet demand. Events and catering businesses can find temporary workers to work shifts when they are needed without full time hiring.
How to Find Cost-Effective Temporary Workers for Your Business
Getting started with a temp agency or online staffing platform is simple.
First, assess your staffing needs. Determine how many temp workers you need and for how long they will be needed
Second, compare staffing solutions. Evaluate temp agency rates and on-demand staffing platforms like Bacon.
Finally, use a staffing app for faster, more cost effective and more flexible temp labor staffing.
Conclusion
Temp agency hourly rates vary but understanding the make up of rates helps businesses make informed decisions. Temp agencies charge for the worker wages, an hourly makeup up, and any additional fees. Bacon charges for the worker wages and a set hourly markup rate.
Businesses looking for affordable and flexible staffing solutions should explore on-demand platforms like Bacon.
