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The Benefits of Using a Temporary Employment Agency.

Temporary employment agencies fulfill twin roles. On the one hand they provide work to people who are in between permanent jobs and need a source of income. On the other hand they also provide temporary staff cover to companies who have a need for a temporary employment solution to cover whilst an employee might be on an extended leave of absence (maternity or paternity leave for example), or to cover for someone who may have a protracted illness, or maybe just to make up the manpower to deal with a sudden surge in orders etc.

Whatever the reason, temporary employment agencies are there when they are needed to bridge that gap, and in so doing provide employment to their registered temps.

Temp employment agencies are very much in demand in the current poor economic climate. Many companies have had to make redundancies in order to reduce overheads which helps them to weather the drop in orders that most companies are facing today. A drop in orders means a drop in turnover, which in turn reduces sales, and the amount of money “in the pot” from which wages are paid.

When a sudden surge of new business occurs, companies are naturally reluctant to take on new permanent staff. Not only is it an expensive exercise to employ new workers (agency fees and training costs), but new employment legislation makes it very difficult to lose staff again if either they are not up to the mark, or if the work flow suddenly dries up again.

Using a temporary employment agency to provide temporary staff is a good all round solution. It works well for the employer because temporary staff have no contractual rights, so they can be “let go” without notice which enables the employer to immediately cut costs without any repercussions. It also saves them the expensive agency fees that are incurred when new permanent staff are hired through an agency.

Temp agencies will often anticipate the needs of their clients and have a suitable pool of temps available at the right time to satisfy the need. An agency providing this sort of facility is viewed favourably as it lessens the need for new permanent staff to be taken on with all its inherent problems.

It is true that temporary labour costs more to hire pro-rata than a permanent member of staff. Obviously the agency fee has to be paid in addition to the temp’s wage. But if this is anticipated and built in to the costings, the extra cost can be passed on to the client.

Many temp agencies have specially skilled temps on their books who are fully trained in their particular field (accounting, IT, stores, purchasing etc). Some agencies also set themselves up to supply certain niche markets, such as installing new software systems. These companies can be a great boon to employers who need such specialized skills, but in the short term only.

In summary, temporary employment agencies provide a win-win solution to their clients. They actually help to keep costs low, and they provide liquidity in terms of trained staff as and when they are needed.

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