How Much Does it Cost to Work with a Michigan Temp Agency?

Working with a Michigan temp agency can be very beneficial for any organization looking to fill vacant jobs. Temp agencies help companies recruit and hire temporary workers on an ongoing basis, making it easier to keep jobs filled. Temp workers are very helpful to companies because they might be able to perform some services that current employees do not have or can work just enough hours where the company does not have them counted against their employment numbers for the Affordable Care Act.

Hourly Temp Workers

When a temp agency places hourly temporary workers with your company you will be paying the agency that placed them with you a fee. For the most part, you will be paying that worker by the hour, so you also pay the agency in Michigan by the hour. For example, if your hourly worker is paid $10 USD per hour, you might be paying the temp agency a percentage rate slightly higher than the hourly rate paid to the worker.

Now, keep in mind that you only have to pay the temp agency when the employee actually performs work for your company. On average, a markup for salary can range from 15 to 30 percent of the worker’s hourly wage. This more than makes up for the benefits of working with a temp agency. Consider these factors:

  • The temp agency does all the recruiting, screening, assessments and background checks.
  • The agency manages areas such as benefits, payroll, overtime, and bonuses.
  • The agency is partnered with your company to ensure that the temp employee performs well on the job.

Temp to Perm Employees

Many temporary employees can find themselves being offered permanent, full-time employment at their companies after being placed by a temp agency. When this happens, the temp agency will charge the hiring company a fee that comes from the employee’s starting salary. The fee will be in the range of 25 to 75 percent of the employee’s starting salary. In this scenario, the company will need to pay the temp agency whether or not the employee winds up working out for the company. This means that temp agencies will need to scrutinize their candidates a lot more so they provide companies with top talent that will stay with the company for the long haul.

Executive Searches

Temp agencies in Michigan are also able to provide companies with executive searches. This is an easier way for companies to bring in new vice presidents, presidents and financial officers for various departments throughout the company. You can sign a retainer fee with the temp agency, which could be a portion of the fee you will pay the agency when they find an executive to work at your company. For the most part, the retainer fee will be half of the expected fee.

Working with a temp agency in the state of Michigan is beneficial to companies of all sizes. Many temp agencies will have set rates to help companies fill open positions, but will be open to working with companies when it comes to negotiating rates. As a company, all you need to do is ask what their lowest rates are and what services you will get for those rates.




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