How Do Temporary Staffing Agencies WorkFor example, temporary staffing agencies in India can provide human resources to a company that wants to employ a worker for temporary purposes and a temporary time period. The organisation in question will have to provide a list of the qualifications that they need from the prospective employee, as well as a tentative time frame. Commonly, these temporary staffing agencies have a markup of 12-40% on the hourly rate of the employee. The job of withholding statutory amounts of money is usually on the temporary staffing agency which means that the companies need not worry about that aspect as well. Companies only have to pay anywhere between 112-140% of the hourly rate of the employee and the other aspects are taken care of by the temporary staffing agency. Apart from this, all the legal compliances that are unique to any particular project, or industry are also taken care of by the temporary staffing agency. All that a business has to do as a principal employer is to ensure that it is happening.
Is Temporary Staff On-Par with Permanent Staff?This usually depends on what the contract between the organisation and the temporary staffing agency dictates. Sometimes the temporary staffing agency itself might offer health benefits and medical insurance apart from leaves, but more often than not, that depends heavily on how a particular person is associated with the temporary staffing agency.
Pros of Working With a Temporary Staffing Agency
- The negotiations usually remain the same. This means that the hourly payment that has to be made to the employees usually are the same.
- A temporary staffing agency ideally doesn’t take a cut from the employee or charge anything like a placement fee which means there is no need to track the actual number of placements.
- Some temporary staffing agencies provide a fixed fee irrespective of the hours worked on a project and provide clauses for leaves and unsanctioned leaves. In those cases, payroll companies can track employee performance easily.
- It becomes easy to track their performance to inform the companies on whom to recommend based on the frequency of allotment to projects.
Cons of Working with A Temporary Staffing Agency
- Onboarding becomes difficult because of the diverse nature of the employees and the various departments that they have to be allocated to.
- Legal compliances that are to be adhered to by the principal employer may be burdensome.
- Understanding the industry-specific compliances and provisions that are required to be made can become tedious.
- Some industries require a specialised software to manage the payroll which can become a burden.