What Is a Temp Agency? Common Services and How They Work

A temp agency is a simple yet effective human resources (HR) solution that can help businesses fulfill many of their dynamic employment needs. They can be the difference between a chaotic, disorganized workflow and an efficient one.  

This article discusses how temp agencies work and breaks down their pros and cons.

What is a temp agency?

A temporary employment agency is a recruiting firm that acts as an intermediary between job seekers and companies needing short-term employees. These workers are usually hired to fill in for simple, entry-level positions that don’t require much training.

So, if you’re looking for short-term staff to help you during periods of high demand, you can use a temp agency to find workers.

How do temp agencies work?

Temp agencies connect you with temporary employees whose engagement in your company could last anywhere from a day to a few months. The agency has the candidate on its payroll and is the employer. This helps with legal and tax purposes since you’re not bound to a contract with the employee.

Let’s break down what roles the agency takes care of and what the process might look like for you.

What does the temp agency do?

Temp agencies specialize in helping companies find short-term employees. Their tasks include:

• Conducting interviews to shortlist candidates. Temp agencies conduct basic interviews with all applicants before onboarding them. These candidates are then added to the agency’s roster and assigned different client companies based on demand. A short skills confirmation check is conducted before assigning any worker to a client.
• Screening candidates. The temp agency conducts all the necessary tests required as part of their own onboarding and training processes. These tests may include:some text
  • Background checks. Employee background checks include checking criminal history, credit history, medical history, and educational qualifications of the potential candidate.
  • Employment history. These are verification checks carried out by the employer (the agency) to ensure the information mentioned in the candidate’s resume is accurate.
  • Drug tests. Drug testing laws vary by state but, in general, hiring an employee is often subject to them passing the drug tests conducted by the temp agency.
  • Health tests. These tests are done to determine the employee’s physical well-being.
• Understanding your requirements. The agency will ask you a series of questions to understand what’s expected of the worker. This helps them find a qualified candidate.
• Finding a suitable match. The agency has a network of candidates and will pull the person who best meets your requirements. They do this by conducting a short interview to verify that the candidate’s skills and abilities match the job description.
• Analyzing employee performance. The temp agency analyzes employee performance to ensure they’re a good match for the role and align with your company culture.
• Training employees. The temp agency trains its candidates between roles, helping them grow and upskill to perform better at their delegated temp jobs.

Temp agencies take care of most of the hiring process, saving you time and allowing you to focus on other aspects of your business without resorting to outsourcing core functions.

How will this process look for you?

The process of working with a temp agency is usually straightforward.

1. Define the role requirements. Be clear about the skill sets required for the role, how long you’ll need the employee for, and the wage.
2. Contact an agency. Contact a local temp agency and let them know your requirements. You’ll want to carefully vet agencies to make sure they meet  procedural and regulatory standards. This might include adherence to drug testing standards, existing clients, and pricing models.  
3. Follow up. Many hiring managers underestimate the importance of following up with both the temp worker and agency. This creates an efficient feedback loop between your organization and the temp agency.

Are temp agencies the same as staffing agencies?

No, temp agencies are not the same as staffing companies—but their roles do overlap. For a fee, they both match candidates looking for work with companies looking for workers. But understanding their differences can help you choose the one better suited for your needs.

Temp agencies help you fill short-term roles that are usually entry level or low skill. Because the work needed requires little training, they can meet urgent needs.

Staffing firms, on the other hand, help find workers for all kinds of roles. This includes temporary positions, but also:

• Temp-to-hire roles. The candidate is hired if they’re deemed a good fit for the company after a 90-day trial period.
• Contract roles. These are specialized roles that last for up to a year.‍
• Direct hire roles. The candidate is given a permanent job if their skills match the requirements of the role.

Unlike the temp hiring process, the staffing process aims to find the ideal candidate to fill the role. So, the staffing process doesn’t give immediate results.

Some other differences between temp agencies and staffing agencies are highlighted.

‍

What are the pros and cons of temp agencies?

Temp agencies serve a needed role at a price. Before you hire one, weigh their pros and cons.

Pros

• Your business can adapt easily to workload fluctuations without overpressuring current employees.
• You can hire a temp employee almost immediately, streamlining staffing needs.
• Your business can evaluate a worker without making a commitment because you are hiring for short-term roles.
• If your current employee suddenly leaves, you can use a temp employee to fill the role until you hire a replacement.
• Temp agencies can help you find candidates for various job opportunities and open positions.

Cons

• You might find yourself constantly training new temps, which can prove a hassle from an efficiency perspective.  
• A temp worker will usually not have the same engagement as a permanent employee. This can lead to a certain amount of friction between these two employees and the way they work.
• For jobs like warehouse help and labor, the temp employee might not be familiar with the safety procedures usually followed at your business. They could end up endangering themselves and other employees.
• Although the temporary staffing agency is legally the employer of the temp worker, there are certain legal concerns attached to hiring a temp worker. A few legal gray areas when it comes to temporary workers are wage and hour laws, FMLA, and employee benefits.

Alternative staffing solutions

If neither temporary nor staffing agencies seem like the right fit for your company, you might consider some of these alternate staffing solutions:

• Hire freelancers. If you’re looking for certain expertise, faster deliverables, or just want access to a global talent pool, hiring a freelancer like those on Upwork can be a good option.
• Use social media and job boards. On social media platforms and job sites, you can see the profiles of the candidates and, in many cases, some of their past work. Plus, platforms like LinkedIn are dedicated to working professionals, allowing you to go beyond what your individual network may bring you.
• Seek referrals. This involves asking your clients, full-time employees, and network for referrals. They may know someone looking for a new job and can refer them to you. Asking for referrals doesn’t involve any expense, and it’s often a fast way to close a position.

These are just some commonly used methods to find suitable workers for your business, but there are plenty of other creative ways to find talent without hiring an agency.

Need temporary work or help filling skills gaps?

Temp agencies are for hiring workers on a short-term or per-project basis. It allows you to get some extra help during periods of heavy workload without going through a tedious staffing process. Whether you need help with temp staffing or finding long-term employees, these agencies can assist with various sourcing needs.

If you’re seeking a specific skill set, consider looking on Project Catalog™. Search fixed-price projects and one-on-one consultations across a wide range of skills and select the option that aligns with your goals and budget. Browse and buy projects in just a few clicks and begin working with an experienced professional right away.