Staffing agencies, also known as temp agencies, connect people looking for work with temporary employment. Different companies also employ the services of staffing agencies to find a good candidate for a permanent job. Temporary positions sometimes lead to full-time positions, and a temporary position is good for experience or for something to pay the bills while looking for a new job. But how much of the temporary employee’s salary goes in their bank account and how much goes to the staffing agency and its owners?
How Much Do Owners Make and How do They Get Their Money?
Generally speaking, the owners of staffing agencies make about $103,000 a year. The exact value varies by individual because of a few different factors. First of all, temporary staffing agencies make their money in different ways. They either take a percentage of the employee’s salary or they charge the company looking for an employee a very high price for their services. Additionally, the salary for staffing agency owners varies by location. Typically pay is higher in big city areas; the more people the agency matches up with work, the bigger the salary for the employees of the agency. According to Indeed.com for example, agency owners in Washington, D.C. make about $122,000, which is 18% above the national average.
The Future of Staffing Agencies
Things are only expected to get better. According to the Bureau of Labor and Statistics, nearly four million people are employed in the personnel supply service industry. That number grew by approximately 9.1 thousand during August 2013, and the industry is expected to continue to have a very high growth rate. With the economy still reeling from the effects of the recession of 2007, more and more companies are using the services of staffing agencies. Even with the markup that they pay the agency it is easier and ultimately cheaper for companies to hire temporary employees. Temporary employees get lower salaries than full-time employees and they can use the temporary position to gauge whether or not the person would make a good full-time employee.
It isn’t just companies that are using temp agencies more frequently. There is also a higher rate of unemployment which again goes back to the 2007 recession. People are going to temporary agencies because they have just been laid off and need something to help make ends meet. Or perhaps they have been looking for a new job for some time and have simply decided that they need help finding something. In short, staffing agencies are seeing a lot of business from both companies and people looking for work.
With the right location and the right business skills, owning a staffing agency can be quite lucrative. And when it comes down to using a staffing agency, everybody wins. The company using the agency finds the temporary employee they are looking for. The person looking for work finds employment. And of course the agency itself makes money and becomes a thriving business.