Should You Use a Temp Agency in Your Business?

Updated on January 14th, 2022
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It appears from the figures released by the US Bureau of Labor Statistics, the first few months of 2017 have remained fairly stable when it comes to job openings and labor turnover. Although the national figures only fluctuated slightly, if you run your own business you may have had an employee leave to seek work elsewhere. But should you use a temp agency in your business to fill that position quickly?

Let’s examine some of the pros and cons of using a temp agency in your business in an attempt to answer that question.

Pros of using a Temp Agency:

Saves Hiring Time

It takes time to go through the process of hiring a new employee. You must create an advertisement, wait for resumes and applications to come in, and interview potential hires. Meanwhile, of course, you still have a business to run.

Sometimes trying to get it all done requires some long days and short nights until you finish the process. Having a temp agency to work with could enable you to fill a position more quickly. They can assume at least part of the duties of the position vacancy within just a few days. In addition, they can help you by sifting through potential candidates. This will ensure they are acceptable for the job. This can save you a lot of time!

Saves Money

On the surface the cost of hiring temps may appear cost prohibitive. But, consider that the company actually employing the workers must pay for benefits. Some may include vacation and sick days, workers compensation and other benefits, as well as the salary of the temporary employee. Once these additional costs are added into the equation, the temp agency’s cut for what they do doesn’t seem as big.

Keep in mind they have spent time and expense in hiring these employees first. As well as screening them for potential positions. These tasks also take time and money. Let’s not forget in the meantime you may also be paying your other staff overtime, increasing your expenses even more until you get the vacant position filled.

Once you start to consider all of these relevant costs, you may see that hiring temps may actually save you money. This could be particularly true when you consider the speed with which you might fill a position with temporary help as compared to the time it would take to fill the position yourself. After all, time is money, as they say.

Reduces Stress

Although you may have other worker willing to assume some of the job duties of the vacant position, they may end up overloaded with work. If it goes on too long your other employees may become overworked and overstressed. This could cause losses in their productivity and morale as well as leading them to seek employment elsewhere too. This scenario could be avoided through the hiring of temporary help to assume at least part of those responsibilities thus freeing your other employees to do their regular tasks. As you can see, hiring temporary help can reduce not only your time and stress levels but that of your current staff as well.

Increases Hiring Possibilities

After you have a temp employee working for at your business, you may be required to evaluate their job performance. If they are carrying out the duties of the position to your satisfaction, you might have the opportunity to hire them as a permanent part of your staff.

Of course this depends partly upon the agreement you have with the temp agency you hired. Some allow you to utilize their services as a means to see if the temporary employee can handle the job before you add them to your permanent work force. Or, as the temp helps with the workload and frees up your time somewhat, you could continue searching for the ideal person to fill the open position. Either way it gives you added hiring possibilities.

Forges a Relationship with the Temp Agency

Using a temp agency to fill open positions in your business a number of times can help you establish a relationship with that company. They may continue to provide you with qualified help when you have future needs. This is a win-win situation for both of you. Additionally, you may help them by evaluating the personnel they send you and providing useful feedback when the temps perform unsatisfactory work.

Provides Flexibility

As your business needs change you may not need to fill a vacant position with a full time permanent employee. If that is the case, hiring temporary part time help might be just the thing your business needs. Should that change in the future, you may be able to offer the position permanently to the temp employee. Or, when the contract ends, eliminate the position entirely if that person is no longer needed. Depending on your business needs you may have greater staffing flexibility by hiring temporary help.

Cons of using a Temp Agency:

Subpar Temp Agency

There is always a possibility of hiring a temp agency that does not meet your needs and expectations. If they repeatedly send workers who are not qualified for the job, it may actually hinder your business relationship with that agency. Additionally, the job duties of the vacant position may be going undone or being may be done poorly. This could cost your business money as well as future relationships with customers and clients.


When you have temporary employees working for you, some training is probably going to be needed for them to complete the duties you assign. This means you will need to train them. If you end up with a different person every time you use the temp agency, you will need to train each one. This takes time and increases your expenses.


It is possible you could have hard feeling arise in your temporary help. This may happen if they work the same hours and perform the same tasks as your regular employees but get paid less for it. There is also the added sting of not receiving the same benefits as the other workers, such as sick days, vacation days, etc. Bad morale can cause stress among workers as well as a bad overall working environment.


Safety of your temporary employee could be a concern. Job injuries could occur simply from lack of safety training. So, be sure you take that into consideration when hiring temporary help for your business. Under no circumstances should a temporary employee be allowed to perform any job tasks that are dangerous without proper training and supervision.

Legal Issues

One of the areas you need to be particularly mindful of when hiring a temp agency is legal issues. You need to take into consideration that the temp employee has the same rights as your regular employees. This is true when it comes to sexual harassment, discrimination, and other issues that could come up while working for your business. It is crucial that you follow employment laws, as well as business policies, when it comes to dealing with temporary employees. Not doing so could open you up to a legal battle that could ruin your business reputation and finances.

Are still wondering if you should or shouldn’t use a temp agency in your business? The answer depends on the kind of business you own and the job duties of the vacant position. It is clear, however, that there are a lot of benefits to hiring a temp agency. They can help you fill vacant jobs and keep your business running smoothly.

Kayla Sloan

Kayla Sloan

Kayla is passionate about helping people get their finances in order so they can pursue a life of freedom. She quit her job to work for herself with over $148,000 of debt and swears it was the best decision she's ever made!

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