Temp agencies help unemployed workers to find jobs and connect organizations with potential employees. Temp agencies have contractual relationships with the organizations for which they supply employees. They charge fees when assignments are completed or when a company hires one of their temps.
Temp agencies have become increasingly popular because of the number of people who are unemployed and looking for work. Also, many companies use temp agencies because they give an employer the opportunity to "sample" a potential employee's quality and proficiency before hiring him.
Temp agencies benefit both the temp worker and the company for which she is working. For example, the temp worker has the opportunity to experience the corporate culture and working conditions of an organization before deciding if it is a place where she can truly see herself working. Conversely, the organization has the opportunity to examine a temp worker's ability and skills before deciding if it wants to hire her. In many ways, it is a win-win.
Temp agencies do not guarantee workers permanent employment with a company. However, if a worker makes a lasting impression on the employer, it may hire him. If a company keeps a worker for extended periods of time or hires him permanently, it pays a hefty conversion fee to the temp agency. This fee varies considerably. One agency, Nuclear Consultants, says its conversion fees depend on the length of time an employee works for a company. For example, the fee is 20 percent of the yearly salary after completion of a four-week assignment and 5 percent after 13 weeks. If an employee stays with a company for longer than 26 weeks, the conversion fee is waived.