How much do Temp agencys really make from their Temps?

Question

I would appreciate hearing from former recruiters or people who have worked for Temp agencies.

Thanks.

Answer 1

Ok, here is the real answer...

It depends, depends on the agency, the client, the contract and the local job market.

But generally, for temp work, it is a percent markup over the temp's hourly wage. Out of the markup the agency pays all associated taxes: 7.65% ssi, unemployment (1-10%), federal unemployment (0.8% usually, can be higher) and workers compensation insurance (between 0.5% to over 5%) of wages. Back when the country was humming right along, and unemployment was the lowest it had ever been, the markups were astronomical. 60-75% or more.

In 2001, after the tech crash and 9/11, the markups started to crash, I get offers all the time for temps at a 25-30% markup, that means the temp company is barely making anything after they pay the taxes and temp.

Permanent headhunters generally get a fee of between 10% and 40% of annual salary. Again, totally depends on the market and the type of job. When I was a recruiter I got between 25-30% of annual salary.

Answer 2

Depends on the agency.

Some get paid part or equal to your first months pay. Some get finders fees. There are a lot of ways they get paid. Some may even get paid both by you in some form and by the employer in another while getting some government money as well.

The best way is to ask, or have someone ask for you so they don't associate you with the questions in case there are any ruffled feathers.

Answer 3

Recruitment agents are a scam. I am sick and tired of their fake and misleading ways. They make upto thousands for every employee that they place. Here in Sydney, Australia it is virtually impossible to get a job without going through a recruitment agent.