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Why Temp Agencies are Outdated

Temp and Staffing agencies have been around for a very long time, some as early as the late 1800’s.  Since its inception, there hasn’t been much of a change as to how the Temp Agency business model is operated.

With an estimated $163 billion of revenue in 2017,  rising projections listed for the following years, unemployment down to 4% but 45 million Americans still in poverty, it raises the fundamental question of how are Temp and Staffing agencies profiting so much? As we start to embrace the future of work, it’s time we start moving away from the old way of hiring even temp workers and into a new way of finding motivated and flexible talent.


Why businesses need a middleman

Many businesses resort to using Temp and Staffing agencies due to cyclical business demands as often times they do not have the internal resources to find quality candidates in a short time frame. According to an article in USA Today,  “They [Temp agencies] allow companies to better manage labor needs in an industry where supply and demand fluctuate as the economy recovers.”

Additionally agencies act as the middleman, pairing employers to prescreened job seekers yet charge as much as 50-100% markup. This markup is not only costly for small and large sized businesses, but it also results in the job workers making far less than what employers actually pay to the staffing agency.


Utilizing Technology

By replacing Temp / Staffing Agencies with on-demand platforms such as Band Of Hands, businesses are able to save financially by no longer having to pay high agency contracts and fees to achieve their needed temp workforce. In addition, they are also able to experience the highly motivated and qualified individuals looking for temporary and reasonably paid work. Here are a few examples on how technology platforms can replace the Staffing and Temp agencies:


    1. Try Before You Buy – Unlike Temp Agencies, there are no buy-out contracts with Band Of Hands. If a Temp Worker is one you consider for longer term employment, you can bring them on your payroll without a buyout fee! Thousands of $$ saved for businesses!!
    2. Known Labor Costs – Have the ability to set and/or negotiate the costs of the Worker is huge for businesses of all size.
    3. Read Reviews and Ratings –  Have the immediate ability to read past comments and ratings from previous gigs to ensure you hire the best person to meet your business needs.
    4. Unexpected or Temporary Demands – Having several people in your office sick at the same time can drastically hinder your business performance.  Typically this can happen with short or no notice and some Temp Agencies may not be able to help you quickly. With on-demand platforms, you have the ability to find help the same day to ensure your business needs are met.


Consider taking a leap into the Gig Economy World and see for yourself. Hire an Independent Contractor today on Band Of Hands.