The Cost of Temporary Workers

If you've ever thought that temporary workers cost less than full-time workers on a daily basis — think again. Studies show that it generally costs the same or just slightly less to hire temporary employees

The rate you pay temporary workers is composed of many elements. Your company does not assume the costs or the responsibilities of providing and coordinating the benefits program for temporary employees. All your company has to do is pay the employment agency for the services used. The temporary agency, in turn, will pay the temporary workers' wages and benefits.

While it's convenient not to have to deal with paperwork for temporary employees, you pay for that simplicity — part of the bill for a temporary worker goes to cover the temporary agency's administrative costs. The temporary employee receives only a portion of what you're charged for their services. The markup over wages paid to the temp worker depends on the assignment, job specialty, experience required, and any other special requirements stipulated by the company. Markups can range from as low as 25 percent to as high as 100 percent — or higher! For higher volumes of jobs involving lots of workers, agencies may discount their standard markup. In cases where a single, very specialized worker in high demand is needed, businesses can expect to pay a higher markup.