Eu Workers Workers agency helps businesses fill short-term staffing gaps. For example, a company that wins a contract to produce electronics components but doesn’t have enough employees to meet production demand may hire a temp agency to help. Temp agencies typically have pools of workers who possess the necessary skills and they charge employers an hourly rate to cover their worker’s wages and payroll costs like social security, worker’s compensation insurance, government tax deductions and more.

Workers at a temporary agency apply for jobs as they would in a regular job interview, and the temp agency screens them to weed out those who aren’t suitable. When a client needs additional workers, they enter into a contract with the temp agency specifying the type of worker needed and the hourly wage they’re willing to pay. The temp agency then draws workers from its pool whose skills match those requirements and sends them to work for the client.

How Temporary Workers Agencies Are Supporting the Gig Economy

If a temp agency sends a great employee to a client, it’s possible that both parties could agree to convert the temp-to-hire placement into a permanent role. This saves the hiring process and ensures the company gets a qualified new employee who fits with their corporate culture.

Critics of temp agencies point out that they allow companies to avoid providing benefits like vacation time and health insurance to their employees, a practice they say contributes to the erosion of job security in modern labor markets. In addition, temp agency employees often are not as heavily incentivized to perform well at their assignments because they know their employment with the client is only temporary.