Over the years, the staffing industry has become an extremely lucrative business. Employment Spot, a career resource site, said that the staffing firm industry is worth at least $43 billion in revenue. Staffing agencies make their bucks by contracting clients in dire need of immediately furnished qualified employees. However, these employees most times are only needed of course for a temporary period. The length of its temporary term is entirely up to the client.
Fees. Recruiting agencies profit by assessing a fee for the use of the employee’s work. The average rate to hire a temporary worker varies by agency. A higher rate is more common with specialized technical skills. Fees will also vary depending upon whether or not fringe benefits are provided, such as health and dental insurance.
Benefits. Clients oftentimes will collaborate with a staffing firm despite fees, because in the long run, they are saving their bottom line money. According to Inc.com, “ninety percent of Fortune Magazine 500 companies use staffing agencies.” Most staffing firms don’t offer their employees benefits such as health insurance or 401(k), as say a full-time employer would. However, a few staffing firms do offer their employees benefits and this could be a huge benefit to their employees.
Tip. Prospective clients who use a staffing firm can attempt to negotiate a discounted rate per employee offered. A deal like this can serve both parties because the staffing firm can leverage more available positions from the client. 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 less skilled workers.
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