IS THERE NOT MUCH TO NEGOTIATE (salary) WITH TEMP AGENCIES?What to do after you become permanent?

Question

I heard temp jobs pay better than permanent ones because they don't give you benefits. Recently I got interviewed by a staffing company RANDSTAD and they asked my salary expectation. I asked them back what would be the range they offer? They gave me a number which is the same as a permanent position will offer me.

If I move on in the hiring process and got the offer, how much is there to negotiate? I don't know what is the normal percentage a temp agency offers you compare with what they will get from their client. Will they be willing to give me more? Can't believe I will have no benefits but get the same money as a permanent worker...

The other thing is I heard after your assignment, if you want to get a permanent position within the client company, it is not possible for you to move without your agency? So what would exactly happen there? I've heard things like the company can hire you only after 6months. So how is my relationship with the agency after my temp assignment?

Answer 1

Temp agencies can usually negotiate a higher rate for you before you accept any job. The negotiation can happen before each assignment.

I use to have an agent that worked the same way - If a job was offering $20 per hour, she'd get me $25. If another was offering $25, she'd get $28. That meant higher commission for her and more money for me.

So yes, there's plenty of room for negotiation.

Answer 2

I'd say it is not always that case. In your case you might worked with an individual recruiter, whose commission strongly depends on what you get paid. But in other case where the agent works closely with their client, say, I know RANDSTAD has their own office in some big pharmaceutical companies and they are responsible for all kinds of temp jobs in those companies - then I don't know if you still have much power to negotiate. Could be that they receive a firm number from the client and then take what ever percent they feel comfortable out from that number and give you the rest? If this is true then the more you get the less they will earn - why would they bother to negotiate with you? Correct me if I am wrong. Just my guess. GOOD LUCK!

Answer 3

This all depends.... being a recruiter for a staffing firm, this is how it works!

Most of the time, again I say most of the time, staffing firms have a set contract with their client. Meaning the staffing firm does not make anymore money depending on the rate that they offer you. The client will dictate the rate of pay and the staffing agency marks that rate up depending on what their contract states. So a lot of time there is not room for negotiating with the agency.

It general it's cheaper for a client to hire a temp/contractor rather than hiring someone perm. Not only do they not have to pay medical benefits but there are a lot of ther indirect costs, like Unemployment insurance, Workers Comp insurance, etc... So a client therefore has cheaper operating costs.

Surprisingly there are a lot of people who prefer working temp/contract. Most of the time these people get medical benefits from their partner/significant other. But by working temp/contract it allows them to change jobs when wanted, gain different experience, and have the flexibility to get time off when they want it.

Building a relationship with your agency/recruiter is key. You want to make sure they are open and honest with you as you will be with them in return.

Hope this helps...

Answer 4

It's been awhile but the last temp to perm I hired thru Randstad, had to work 13 weeks thru the agency. When the person was on our payroll, we paid less than what the agency charged us but it was more than what the agency had paid the person.

If Randstad gives you a temp assignment, you would be contractually obligated to their terms if the client company wants to hire you. Many companies use temp agencies to screen out potential employees.

Answer 5

This might be cheating... but the easiest way to negotiate salary is to hire a professional to help you. As a professional salary negotiator myself, I have negotiated higher salaries for over 700 people. My trick is to handle the entire thing by email. Negotiating by email improves the odds for an amateur negotiator. That’s because it takes away your employer’s ability to "read you" in person and bluff you into taking less. Over email you can carefully choose every word. And a professional like me can get you every penny you deserve without risking your job. The only rule is that you can never tell ANYONE that you had outside help. To learn more check out NegotiatingSalary com

Answer 6

Thankyou all for your replies and opinions!

Answer 7

Thankyou all for your answers and opinions.