Comments on: 41 Questions to Ask the Company That Wants to Provide Your Temps

By: Doreen Koronios

Doreen Koronios — Tue, 08 Jan 2013 15:22:33 +0000

Great list. However, I think you need to add: Does the staffing company do background checks on the temps? It’s important for an employer to know that anyone coming into their workplace has been thoroughly vetted and will not present a problem to the workforce or the workplace.

By: Derek Zumwalt

Derek Zumwalt — Wed, 02 Jan 2013 23:40:14 +0000

Good list but one to add: For those of us under OFCCP, does the agency comply with the requirements! OFCCP is like the Midas Touch, it will scale down to subcontractors, which could readily apply to your use agency.

By: Laura Carswell

Laura Carswell — Wed, 02 Jan 2013 14:55:38 +0000

Having been in staffing for 35 years now and owning my own company for 16 of those years, I want clients who use staffing to understand a little more about “HOW” they will be treated as a client if they so choose to go with a service and you base it strictly on pricing. Large corporations and mom and pops alike do come to a place in the road where the talent they are successful in recruiting, will be prioritzed out to the clients they deem to be “most profitable”, a true business partner and most of all, if they are an exclusive service to the client. “Cheap is…is cheap does”. In an economy where staffing services have taken the blunt of the blows for corporations on state and federal taxes; not to mention workers comp, there are no longer “change” in our margins to allow our industry to “low ball” pricing any longer. I agree, your service should show you their gross margins and I think you will be surprised that some have serviced as well as they have for as long as they have. I have just received my tax notices and during the five years of this recession, I have never passed on the costs to my clients. I either pass on the increases or go out of business. High volume of contingent employees no longer pays the bills due to how UI and WC risks grow at a 4 to 1 ratio right now.
I strongly suggest you allow your services to make as decent a margin as can afford generate and negotiate “value added services” to justify their pricing. The clients I have I have had for the 16 years in business and I had rather have a valued business partner anyday than to just send people to generate revenue. I believe in quality not quantity and each organization; especially with all the employee friendly laws coming down the pipe, needs to decide how they can work with their services to maximize their bill rates.
Long term Contingent staffing is going to be huge to my clients this year until our politicians decide our tax structure. I have teamed with my management and as an SPHR professional, I look at the WHOLE picture and what needs to be done for a win-win-win situation.
My best to you all in your recruiting efforts!

By: Keith Halperin

Keith Halperin — Mon, 31 Dec 2012 19:24:39 +0000

Thanks, Cathy.
“What are their rates? Are they ever negotiable?”
You should also drill down and find out their bill rates and pay rates. That way you can determine what is their temp-perm (without a fee) conversion period. Example: let’s say you have an admin temp with a 56% gross markup. If the agency has a 6 month (without a fee) conversion period, you are in effect paying a 28% fee. If they won’t tell you their margin (and you still feel you need to go with them), then you should insist on a 90 day or less contract-perm time…

Finally, if you need someone NOW/quickly, you go with who you can get and pay for it. If you have time/bandwidth to plan ahead, you can build up a network of qualified freelancers/independents through Craig’s List, Odesk, Elance, Freelancer.com, etc. who you can call when you need them, and keep the savings….

Happy New Year,

Keith

By: Morgan Hoogvelt

Morgan Hoogvelt — Mon, 31 Dec 2012 17:43:22 +0000

Some good questions, but this is like an RFP. When most of the times temps are needed in a hastened status, I am not sure if people will get around to asking these questions.

I typically utilize the assumption of trust and success for a business to be in business and until proven otherwise, will go with a temp agency that produces results – for me: timeliness and quality. And moreover, it is not about the “temp agency” rather it is the individual that I work with. If he or she is good at what they do, I will use them anywhere and anytime.

Go Navy.

By: Doug Cohen

Doug Cohen — Mon, 31 Dec 2012 14:37:32 +0000

Cathy,
Thanks for posting the questions. I know many managers/recruiters(myself included) who just ask the basic, but I will keep the questions in my file.
Thanks