What Is a Temp Agency

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A temp agency helps to save time by providing more workers for large-scale and small-scale businesses. This transaction will enable the company to pay a fee to the temp agency, and in exchange, the pre-approved employees will be provided to the company.

Most organisations utilize the services of a Temp Agency to reduce the stress of looking for employees themselves. More so, a temp agency works with managers from manufacturing and supply chain operations. They help to relieve them of the pressure of having to find workers for just short periods. 

Temp agencies provide an on-demand labour platform to quickly suffice the situation of looking for employees for organizations. Therefore, this article will cover what a temp agency is about, how they make money and other crucial things you need to know about temp agencies.

What Is a Temp Agency? 

A temp agency, also known as an employment agency, is a firm or an organization that connects businesses to workers for temporary or contract work. 

Nonetheless, a temp agency charges businesses for workers it finds to fill a particular position. The most common industries that work with temp agencies include information technology, management, industrial labour, office administration, health care, and accounting. 

A temp agency comes in when you need more employees to help you get the job done. Hiring a full-time employee for a short-time job can become a hassle, which can be a very tough spot to be in from a hiring perspective. So, temp agencies help to connect candidates with opportunities that suit their needs and align with their interests. 

How Does Temp Agencies Work? 

Temp agencies do not have a specific job description, but they operate in different roles, and they primarily work between job candidates and potential employers. This process begins when candidates go to the agency seeking employment opportunities. The temp agency then secures contracts with companies and different employers, to know their expectations and goal of finding the right candidates for the position.

So, the agency will set up an interview with the candidates to determine their qualifications and skills to know if they are qualified for the job position. 

The agency will then find the right talent that is qualified to fill the temporary employer’s available roles. After that, employers pay the temp agency for each candidate they provide, and then the agency pays the employee for the hourly wage, depending on the agreement being negotiated. 

How Do Temp Agencies Pay Workers?

Candidates who are employed through a temp agency receive a salary from the temp agency and not from the company itself. Note that most temp agency pays hourly wages for employees. 

The Average Temp Agency hourly pay ranges from $10.99 per hour for social media specialists to $15.88 per hour for insurance agents. Moreover, this salary depends on the negotiation between the temp agency and the candidate. 

So, most temp agency creates separate agreements with employees to determine the rate of pay each employee receives for their time in the workplace. 

Temp Agency Vs Staffing Agency

There are quite a few differences between a temp agency and a staffing agency. A temp agency is looking forward to finding employment for candidates to fill out vacant positions. These positions are usually short-term positions and short-term commitments. 

However, staffing agencies are looking forward to selecting, finding, and hiring the most qualified candidates for long-term positions. A staffing agency is the opposite of a temp agency. They help candidates in securing a full-time job. Also, they are primarily focused on fulfilling the long-term employment needs of their clients by connecting them with candidates looking forward to full-time employment. 

Relevant: 20 Best IT Staffing Companies in USA 2024

What Are The Differences Between Working With a Temp Agency And Working With a Staffing Agency?

Here are a few differences between a temp agency and a staffing agency:

1. Fees 

As a job seeker who is looking for a job, you may be wondering how much it will cost you to connect with a staffing agency. Well, the good part is that most temp agencies do not charge the applicant any fee. That is why you should consider a temp agency when looking for a short-term job

However, Staffing agencies do not always save you costs because a token will be requested when utilizing the services of a staffing agency. Nonetheless, you need to meet up with the job requirements when making use of staffing agencies. 

2. Time 

If you are looking forward to getting employment without the need of stressing through different job sites or platforms, working through a temp agency will save you time, compared to when you are conducting your research. 

As mentioned, a temp agency will connect you with potential companies and introduce you to job vacancy opportunities. However, when you are searching for employment making use of staffing agencies you need to be dedicated and experienced because it requires more time and effort to get job opportunities from staffing agencies. 

3. Flexibility 

Temp agencies offer different unique scheduling options, which means that you can choose to scale up or down depending on what you want. Also, this can be helpful if you are unsure of what type of career you want to pursue. As it will provide you with multiple options and chances to learn about different positions. 

The flexibility of temporary positions can help you connect with a business, and get to network with other professionals, and this will allow you to gain contacts in the industry. 

However, Staffing agencies do not hire with flexible schedules, since it is a full-time job and they are often busy working on projects. So, there is no way to work with multiple jobs, as it requires much time and resources. 

Relevant: Unskilled Jobs in Italy for Foreigners 2024 (All you need to Know)

4. Opportunity Provided 

A temp agency will help you decide on a career path for yourself. This is best, especially for graduates who are struggling with making the right decision when it comes to their career path. 

You will get to work in different short-term jobs in different areas of your career to determine which one is best suitable for you. 

However, when working with a staffing agency, you will get to work in just one full-term job in just one company. And you also have to work in a position that suits your qualifications.

How Do Temp Agencies Make Money?

Temp Agencies usually make money by charging employers for all the services they provide. So, temp agencies charge for any services that they offer to their clients, including services like screening, recruiting, performing Human Resources duties, and administrative, testing, and assigning workers at their locations. 

The agency can also receive a portion of the temp worker’s contracted hourly wages. For instance, if the workers normally make $12 per hour, they might decide to charge the business $16 per hour and keep the $4. That is how they make their gain from their work schedule. 

This means that the temp agencies mark up employees’ wages. However, A temp agency often generates their money through various methods and fee structures. Primarily by providing services related to matching job seekers with potential employers and fulfilling their contracts.

Top Recruitment Agencies in USA Recruiting Foreigners
Top Recruitment Agencies in the USA Recruiting Foreigners (1)

What Is a Typical Temp Agency Salary Structure?

The typical temp agency salary range is usually located between $97,665 and $128,512, and its overall average salary is about $112,020. 

Individual salaries usually vary depending on the job title, location, department, certification, level of education, and other profound skills. For instance, if a clerk at a temp agency is paid between $31,005 and $39,918 per year, an executive or management position will be paid more due to their qualifications and position. That is, there is a huge difference in salary depending on the position. 

Along the line, the future development is better, and the competition is higher compared to companies in the same industry. So, if you are looking forward to securing a good job in a Temp Agency, it requires you to have a degree, experience, and the skills required for the exact position available.

How Long Does It Take To Get a Job Through a Temp Agency?

Landing a job through a temp agency is usually guaranteed, but there is no exact timeline on when you might be able to get a job with the agency. This depends on if the position you are applying for has a lot of job opportunities/ openings. 

Most of the time, it depends on several factors, meaning it depends on the current job market situation.

Undoubtedly, working with a temp agency is usually faster than hunting for jobs on your own. However, the temp agency will work as fast as they can to find a job for you.

Although it might not be right away, it might take a few weeks to find a good job suitable for you. 

Factors that can delay your chances of getting a job faster through a temp agency include your skill set, experience, the current job market, and the flexibility of your schedule. 

What Type Of Job Can You Get Through a Temp Agency?

Temp agencies can help you secure any type of job depending on your specialty and qualifications. If you are thinking of temp agencies for people looking for entry-level jobs, think about it again, because that is not the only feature that temp agencies offer. 

You can find a high-level, professional job through recruiters. Some agencies even help secure manager and executive positions. So, it does not matter what level you are at, temp agencies can help you secure any job of your choice. 

Also, Temp agencies can help you secure jobs such as:

  • Computer support specialists
  • Administrative assistant
  • Copywriters
  • Customer service representatives
  • Office managers
  • Visual merchandiser
  • Translators
  • Equipment operators
  • Computer programmers
  • Paralegal
  • Equipment operators
  • Carpenter
  • Human resource specialists
  • General manager
  • Accountant
  • Tutor
  • Editor
  • Accountant
  • Registered nurse
  • Auditor
  • Operations Manager
  • System Analyst
  • Management analyst
  • Electrical engineer
  • Physician Assistant

Can I Earn a Permanent Position From a Temp Agency?

When you work with a temp agency for a long period, you will get to work in a temporary position where you can work from anywhere, but you can get more out of it. Some temporary job positions offer the opportunity for high-performing employees to transition their temp jobs into full-time positions. 

This decision to turn a temp employee into a full-time employee often occurs between the employer, the temp agency, and the employee. So, the employer and the employee will negotiate the term position, salary, and benefits. Then, the employer will take over the responsibilities from the temp agency. 

However, before this can happen, the employer will have to wait until the contract between the employee and the temp agency expires and get the approval to hire the employee directly from their company. So, temporary jobs can become permanent if you play your cards right.

Tips On How To Ace a Temp Interview 

Below are a few tips on how to ace a temp interview:

1. Be Honest

Answering interview questions honestly will help them understand what you are doing and why you want the position. So, you do not have to tell a lie when answering questions during a temp interview.

2. Be Prepared

You should prepare yourself well before attending a temp interview, the same way you will prepare for any other interview. If you do not know about the job position you applied for, endeavour to do research on it in advance. So, practising some interview questions and answering them online will help you get prepared.

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Need our Assistance for your LOE/SOP? Contact Fasthire today.

3. Be Ready To Prove Your Qualifications

Most agencies will ask you to complete pre-employment screening, such as a personality test or skills test during your interview. This process will prove your qualifications and determine if you’re qualified for the position or not. 

4. Know What Type Of Work You Want To Do

It is crucial to know about the position you are applying for before applying for it. In most cases, the interviewers will ask for your work experience, skills, qualifications, and the type of work you are looking for. This is why it is vital to know what you are looking for before going for a temp interview.


A temp agency is an ideal option for individuals looking forward to getting employed faster. While these may be short-term positions, you will also have the opportunity to switch easily with the help of a temp agency. This article has covered what a temp agency is, and we hope it is helpful to your search.


  • Indeed.com
  • Veryableops.com
  • money.howstuffworks.com
  • mollybrowntemps.com
  • salary.com

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