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Do Staffing Companies work for the client or the candidate?

Staffing Scrabble by Amtec CC BY-SA 2.0

Finding a job isn’t always easy, even in today’s economy. What makes it even more difficult is navigating the various types of placement and staffing companies and their fees.

If you’re unemployed, you don’t necessarily have the funds to pay someone to find you a job, so do you have to pay the staffing company that’s advertising for warehouse workers? And just who is that staffing agency working for – you or the company that needs the worker?

As in most things, the answers to those questions are: it depends.

The three scenarios:

There are some agencies who will accept job seekers as clients and place them into positions. These are usually known as placement firms. You, the applicant, would pay the company to find you a job. You would then pay a fee – either directly, or as a deduction from your paycheck, until it is paid in full. In this case, the placement firm is working for you.

This type of agency may also accept a contract from a company to find the right person for a vacancy. In those circumstances, the agency performs a search, pre-screens candidates and then refers them to the company for hire. In this case, it is the company that is paying the agency, so the agency is working for the company to find the best person.

Then there is the third situation where the agency is working for both you and the company.

Staffing agencies, as they’re referred to, provide workers to companies for either specific projects or set lengths of time. They employ workers who can fill the various needs of multiple companies and they pay those workers as employees of the agency.

Companies who need temporary help will pay the agency to provide skilled workers to them to meet those temporary needs. The companies may pay a set fee, or may negotiate a rate of pay for the worker that covers the hourly rate the worker will be paid along with the agencies fees.

For example: ABC company needs 5 temporary workers to help out on a specific project. They hire Best Staffing to locate those workers. They agree to pay Best Staffing $20/hr. for each worker. Best Staffing refers 5 of their employees to ABC and pays them $17/hr. to do the work. The other $3/hr. is the fee that Best Staffing is paid for providing the workers.

That fee has to cover all of Best Staffing’s expenses for their employee, along with the service and overhead costs of finding and placing the workers at ABC.

In this situation, the staffing agency is working for both you and the company. The agency must meet the needs of the company and keep them happy in order to have a continued business relationship. The agency must also meet the needs of their employees by finding them acceptable work at a market rate of pay.

Since the agency relies upon having good workers to refer to companies, they will often offer benefits and other perks of regular, full-time employment in order to maintain a good relationship with those workers. And the agency will advertise that good relationship in order to get more companies to use them.

It’s a mutually-beneficial relationship.

So when you see a job posting by an agency, it’s perfectly acceptable to ask who is paying the fee and how the specific job will work.

Supplemental Staffing works for both the employee and the company. Our clients inform us of their temp to hire needs, and we recruit employees with the necessary skills required for the positions. Contact us today to discuss how our service can fit your needs.

You can also learn more by utilizing our resources!

Or, if you have been out of the workforce for awhile, let us help you get more experience!

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Topics: Establishing a Career, Re-Entering the Workforce, Employment Agency, Gaining Experience