Hiring temp labor is an efficient way to meet business staffing needs, but understanding temp agency rates is key to creating a cost-effective staffing solution. This article breaks down temp agency rates, explains what businesses need to know, and explores cost-effective alternatives like online staffing platforms.
What Are Temp Agency Rates?
Temp agencies connect businesses and workers, helping both parties. They charge businesses a fee for this service, which is where the temp agency’s profit comes from. To understand temp labor, it’s important to understand these temp agency rates and how they work.
Traditional staffing agencies rarely have a flat rate. Rates are usually made up of multiple fees. Some common temp agency fees are hourly markup, administrative, overtime, holiday, minimum hour, and conversion fees.
Hourly markup fees are the percentage added to the worker’s hourly wage, these are typically between 25% and 75%.
Administrative fees are the fees charged for the cost of recruitment, onboarding and paperwork. These fees will differ for each temp agency.
Overtime and Holiday fees are charged according to each states laws
Lastly, conversion fees are the fee charged when a temp worker is hired on as a full-time employee. These fees are usually a percentage of the workers' full time salary.
For example, if a temp worker is earning $15/hour with an average markup of 50%, the business would pay the temp worker $675 for a 30 hour work week.
Factors That Influence Temp Agency Rates
A few variables can affect how much businesses pay for temp labor. Temp labor to fill specialized roles, like forklift operators in warehouses or bartenders for events, often come at higher rates.
The location of the shifts may also influence how temp work works. Duration of shifts could also impact the rates charged on the shift.
- Pro Tip: Consider using online staffing platforms to find affordable options for general labor staffing.
Hidden Costs in Temp Agency Rates
Many times fees are hidden when engaging with temp agencies, and businesses might overlook them when hiring through a staffing agency. The easy solution to these hidden fees is to use an online staffing platform, like Bacon, that offers transparent pricing and no extra charges or hidden fees.
Comparing Traditional Staffing Agencies with Online Staffing Platforms
Online staffing platforms are the modern alternative to traditional staffing agencies. Traditional agencies have established networks and industry expertise but have high costs, slower processes, and less flexibility.
Online staffing platforms have transparent pricing, instant job posting, and lots of flexibility.
Bacon is a Cost-Effective Solution for Temp Labor
Bacon stands out as the best choice for hiring temp labor. Bacon has transparent pricing, with no hidden fees, unnecessary markups, or conversion fees.
Bacon gives businesses the control and flexibility to fit their staffing numbers to their unique staffing needs.
With on-demand staffing like Bacon, businesses post the shifts they need filled on the Bacon platform. Businesses have control over details like call number and worker wages.
Workers get notified of a shift posting and choose the shifts they apply for. Businesses choose the workers they want based on a workers’ Bacon Score.
Bacon has a much higher average fill rate than traditional temp agencies. This is because Bacon workers choose what shifts they want to work, the use of backup workers, and the use of ratings and reviews.
After a shift, businesses have the chance to rate and review workers. These ratings directly impact a worker's Bacon Score and their ability to get accepted to future shifts. Workers know they are getting rated and are motivated to work hard.
Temp agency rates can vary from agency to agency. Understanding temp labor rates help businesses make informed decisions. Online staffing platforms like Bacon provide the most cost effective and flexible staffing solution. Try Bacon to simplify your temp staffing process and reduce costs.
