Temp agencies are a lucrative and growing business. These agencies make their money by charging their clients for furnishing qualified employees for a limited period of time. In some cases, temp agencies may earn a commission if the employee and employer want to make their relationship full-time.

A temporary work agency makes money by assessing a fee for the use of the employee's work, according to collegegrad. The average rate to hire a temp worker ranges between 25 and percent of the employee's salary.

A temp agency may charge around percent of the worker's salary if the client requires someone with specialized technical skills. Temporary staffing agencies and their business clients typically do not inform employees about how much the client actually pays the staffing agency for the employee's services, according to TechRepublic.

In general, it is considered a violation of ethics to talk about temp agency fees; but if a worker develops a close relationship with a manager or whoever at the company deals with the staffing agency, that person might feel comfortable enough to divulge the fee.

Businesses often contract with temp agencies despite the fees because they end up saving money. Ninety percent of Fortune Magazine companies use temp agencies, according to inc. A temp worker does not get benefits such as health insurance or a k like a normal employee, which may amount to 40 percent of a person's salary.

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For short-term technical work, it's usually more convenient to hire a temp worker than to fill a full-time position. Sometimes temp agencies make pricing of binary option indicator trade elite v1.0 by quoting the worker a lower wage than they are actually paid by the client, according to Tech Republic. In most cases the client pays the agency and the agency handles payroll, so the agency has significant leverage.

The agency may even keep the pay rate a secret to get the worker to commit to the lowest possible salary.

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Businesses using temporary workers from an employment agency should try to negotiate with the staffing firm because most how much money do temp agencies make offer a discounted rate, according to Mie-Yun Lee of entrepreneur.

Even if business clients fail to negotiate a discount on all workers, they can still try to talk down the fees on certain workers, especially unskilled ones. Russell Huebsch has written freelance articles covering a range of topics from basketball to politics in print and online publications. He graduated from Baylor University in with a Bachelor of Arts degree in political science.

Cryptocurrency trading strategy to main content. Fees A temporary work agency makes money by assessing a fee for the use of the employee's work, according to collegegrad.

Finding Out the Fee Rate Temporary staffing agencies and their business clients typically do not inform employees about how much the client actually pays the staffing agency for the employee's services, according to TechRepublic. Benefits Businesses often contract with temp agencies despite the fees because they end up saving money.

Warning Sometimes temp agencies make money by quoting the worker a lower wage than they are actually paid by the client, according to Tech Republic. Tip Businesses using temporary workers from an employment agency should try to negotiate with the staffing firm because most will offer a discounted rate, according to Mie-Yun Lee of entrepreneur.

References 5 Employment Spot: Temp Work — Pros and Cons of Temping Collegegrad. Using Employment Agencies Successfully TechRepublic: Educate Yourself About Employment Agency Fees Inc. How to Find the Right Temp Agency Inc.

How to Choose a Temp Company. About the Author Russell Huebsch has written freelance articles covering a range of topics from basketball to politics in print and online publications. Photo Credits worker image by Robert Kelly from Fotolia.

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