Ah, money. It’s why we sign on with an agency, and it’s why we drag ourselves to work every morning. But who pays for what? Where does the agency make its money? Are agencies taking part of our hourly wages to cover their own overhead?
Before you say it–agencies are not taking part of your hourly rate for their own commission. Any temp agency that charges you ANY kind of fee for temporary placement is one you should avoid. You’re doing the agency a favor by signing on your skills; if they try to make you pay for temp placement, walk away. The only direction money goes is from their hands to yours, and never the other way around. The exception to this is in permanent placement, which is not to be confused with temp-to-hire jobs, and will be discussed in a moment.
Temporary assignments are generally paid in the following manner. You specify an hourly wage, and the client company does the same. If those two match (or are at least in the same ballpark), you get the call for the job. If you said you want $12/hr. for the work, the client will pay $12/hr. for you. But on top of that hourly fee are agency fees charged directly to the client. The amount of that fee–well, it will vary anywhere from 1.4 percent to 1.7percent. But what you need to remember is that NO reputable temp agency charges YOU for placement. The client pays for your services, not you.
So, how much money are we talking about?
The answer to that, of course, depends on where you work. In the New York metropolitan area your hourly rate will usually be higher. But rates are also determined by how much experience you have and what skills you can offer. There’s a lot of variety, even between different NYC firms, so it is a good idea to sign up for several firms simultaneously so you won’t be in for a disappointment; research carefully before signing on, or you might be in for some disappointments with some agencies.
I spoke with several assignment managers at some NYC agencies to get a clearer idea of what the going rates are for temps. Of course this is insider information, so almost no one would ‘fess up. But one manager at a bustling firm gave me a little to work with. “It depends on your skills,” he said. “If you come in with tip-top skills, we can probably put you to work immediately.” What can you expect to be paid? “A good receptionist will earn anywhere from $8-$10 per hour. Word processors get $14-$16, and the legal and executive secretaries get $18 and up–but they have impeccable skills, and the pickiest clients.”
Resources a’plenty
Since agencies won’t discuss their hourly rates, guerrilla-minded temps have to do a little more digging. Fortunately that isn’t as hard now as it might have been a few years ago, thanks to the web and a handful of organizations and publications. If you’re in the NYC area, waste no time in checking out “The Red Guide to Temporary Agencies” (http://www.panix.com/~grvsmth/redguide/index.html). Angus B. Grieve-Smith has compiled a daunting list of NYC agencies (69 at last count), with up-to-date information ranging from typical hourly rates to the length of time between assignments. And here’s the real kicker–the information comes from temps who’ve worked for these agencies. This is great stuff, and a must-read for any interim employee in the city wanting to check out the market.
If you’re in the New Jersey area, the Temporary Task Force of Northern New Jersey offers a new publication called “Consumer Guide to Best Practice Temp Agencies of NJ” (http://members.tripod.com/tempguide/). This includes reviews of NJ companies and other information for temp workers.
There have been mutterings for years about a union for contract laborers, but so far nothing much has come of it. But the “Contract Employee’s Handbook,” written by James R. Ziegler, Ph.D., is a great place to read about a wide variety of topics related to contract/interim employment.
What about landing a permanent position?
Temp-to-hire works in the following way. You will work a specified length of time for the agency, contracted to the client company. This is usually anywhere from eight to 12 weeks, and the fees the client company pays during the temp-to-hire period function as a fee for placement. At the end of the temp-to-hire period (a kind of probationary period), you roll over to the client company’s payroll, and you’re all set.
The temp-to-hire process works well for companies for several reasons. First, companies can almost literally “try before they buy.” It’s true that they are paying a fee, but the fee is spread out over a number of weeks and this makes it far more affordable for smaller companies that may have trouble with a flat fee.
Don’t ever forget that the temp-to-hire period is a true probationary period. You can be dismissed at any time during this period without explanation. If this happens, you pick up the pieces and ask the agency to find you a new position. The client company is out however many weeks of invoices they may already owe the agency for your services, but that will almost certainly still be less than a permanent placement fee would be. The other way to get a permanent job through an agency is through professional placement. This is drastically different from temp-to-hire. Placement involves a one-time fee, which can be paid either by the client company or the employee. A number of companies will pay placement fees for employees, but there are plenty more companies that will require you to pay the fee yourself.
Grace Cantey is a singer and former temp employee who went over to the other side of the desk to become an assignment manager–and lived to tell about it.
