Is There Any Difference Between Staffing Agency And Temp Agency?

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How often have you been confused between a staffing or a temp agency? Probably a lot! With the same business model, employers and employees interchangeably see staffing or temp agencies, but they are not! As the leading staffing agency, Times Agency Group understands the significant differences between the two, which everyone must know before hiring or applying for one. In this blog, we will uncover all the notable differences to end the staffing agency vs temp agency debate once and for all!

3 Main Difference Between Staffing Agency and Temp Agency

Staffing and temp agencies serve the common purpose of providing, but they both are different! Here is how-

  • Temporary vs Long Term Work

temp vs long term

Staffing Agencies

Staffing Agencies deal in both permanent and temporary hirings. However, their temporary hires come in varied options like temp-to-hire, contract, and direct hires. They primarily deal in long-term/ permanent hires for high-level positions and management roles.

Temp Agencies

Temp Agencies hire people to fill temporary job roles. They hire for short-term projects and assignments lasting one day to 6 months. These temp agencies, therefore, fill the urgent hirings by the companies, typically for the manufacturing sites, warehouses, etc.

  • Immediate Employment vs Right Fit

Immediate Employment vs right fit

Staffing Agencies

The hiring process of Staffing agencies is comprehensive and focuses on finding the “right fit”. They conduct various rounds, assess the educational qualifications and skills and even place the candidate on probation for the initial months.

Temp Agencies

The temp agencies have to fill the urgent hiring requirements of the clients, which is why they focus on “immediate employment” over the “right fit.” These agencies only make sure that you can do the job or not. Educational qualification is their least priority.

  • High pay vs Low pay.

high vs low Pay

Staffing Agency

Since the staffing agencies focus on finding the right fit, the candidates they hire are paid higher salaries. The staffing agency candidates are hired for long-term, high-profile jobs and are paid according to their skills and experience.

Temp Agency

Temp agency candidates are paid lower compensation as their job roles are temporary and short-term. They are paid as per the wage/compensation set by the employer for the particular job without taking educational qualifications into consideration.

Staffing Agency vs. Temp Agency: A Tabular differentiation

Basis

Staffing Agency

Temp Agency

Placement Type

Permanent or Temporary

Temporary only

Recruitment and Selection

Comprehensive

Basic

Employee Benefits

Include healthcare, PF, etc.

Minimal or no benefits

Employer of Record

Yes

Yes (for payroll and benefits only)

Client Relationship

Ongoing and long-term

Short-term and project-based

Employee Relationship

An employee of the agency

An employee of the client company

Compensation

Usually higher

Usually lower

Skill level

Skilled and professional workers

General Labor and Entry-level roles

Pros & Cons of Staffing and Temp Agency

Knowing the pros and cons of staffing and temp agencies makes it easier for the employer to know which one would suit his requirement! Here is the pros and cons list of both agencies

Pros of Staffing Agencies:

  • Helps in finding full-time employees, which can be ideal for companies looking for long-term staff.
  • Have a large pool of pre-screened candidates with various skills and experience.
  • They undertake all the hiring details, including background checks, drug tests, and onboarding paperwork.

Cons of Staffing Agencies:

  • Higher fees by the staffing agencies for their services
  • Hiring takes more time to close and place the candidate.
  • Lack of clarity in understanding the company’s culture or specific needs

Pros of Temp Agencies:

  • Easily find temporary employees for short-term projects or to cover absences.
  • They are cost-effective as the company only pays for the hours worked
  • Suitable for candidates who are trying to fill the employment gaps

Cons of Temp Agencies:

  • The Temporary employees may not be as invested in the company’s success
  • The quality of work by the employees may vary, as the agency may not be able to find the right fit.
  • The companies may need to spend time and resources training temporary employees hence an increase in costs.

Summing Up

The staffing agency vs temp agency may always be a point of confusion for a lot of people thinking of onboarding one. With the same business model, both differ to a great extent. The staffing agencies focus on permanent hiring, while the temp agency hires temporary employees. Both agencies also differ in categories like pay, benefits, hiring process, etc. With a firm analysis of the pros and cons of staffing and temp agencies, it becomes easier to know which one to go for!

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