Staffing Agency Warning

I see some posts about staffing agencies, and I just wanted to share my story with one in Hauppauge.

I had just graduated & was looking for a job.

I ended up with an agency. Did all the paperwork and typing tests, etc.

I was a great candidate & they found me an admin job that I interviewed for and the office wanted me.

I would be paid by the staffing agency & not the office I'd be working for. It would be for 8 weeks & if the office liked me, they'd hire me & the agency would get a one-time cut of money by the office.

so, the agency told me the office would pay me 15 an hour. I agreed and started working. I got paid my 15 an hour by the agency, who signed my checks.

one day I was working super hard, and the office manager who hired me @ the office said, "wow, you're working at 20 an hour, when you should be getting paid my salary!" she said it in a kidding manner.

I said, "20 an hour? Don't you mean 15?"

Anyway, we ended up comparing notes, and we figured out that the agency was collecting the extra 5 an hour. My boss was giving them my pay as if I were making 20 an hour, and the agency was paying me only 15.

This wasn't something that the contract between the agency & the office stipulated, either.

You can FM me if you'd like the name (just to be sure you won't get swindled)

Re: Staffing Agency Warning

I think that happens with every agency; that is how they make money on an ongoing basis.

There are some folks here that are subbed out thru an agency twice. They sign with an agency, that agency signs with another agency, and then with my company. I can't imagine how much is being skimmed off the top from my employer to the employee.

Message edited 5/24/2010 9:16:18 AM.

Re: Staffing Agency Warning

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Message edited 11/10/2010 10:17:27 PM.

Re: Staffing Agency Warning

Posted by hazeleyes33

Yes, I have heard the same thing with people that have temped with me.

At least you got a job. My dh has been to 3 temp agencies and NONE of them have called back with a job but they keep advertising jobs constantly!!

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Message edited 11/10/2010 10:17:40 PM.

Re: Staffing Agency Warning

the agency gets paid that way.

Re: Staffing Agency Warning

Re: Staffing Agency Warning

then how does the agency get paid?

I worked temp and this is how it was done.

There is a negotiated rate. The agency gets their commission on the placement.

The employer gets charged $20/hr but the employee gets the rate after commission is taken.

Same as consultants..the contracts are for a certain $$ amount each day but that's not how much they make.

Message edited 5/24/2010 4:03:22 PM.

Re: Staffing Agency Warning

Any time my office has hired temps it was with the understanding that the hourly rate we pay to the agency is not what the employees is paid. We don't even know how much the employee is getting from the agency since they are their payroll, not ours.

Re: Staffing Agency Warning

Maybe I am mistaken, which is possible.

I just remember being annoyed that the office manager wanted to pay me 20, agreed to paying me 20, and *thought* I was getting paid 20, until it came out that I wasn't...

& then I remember the office manager being very angry at the agency and then all of a sudden, I was getting paid the 20 an hour.

But I could be wrong.

Re: Staffing Agency Warning

It sounds like there was a miscommunication between the temp agency and the office manager. When we call for a temp we give a price range for the position but that's what we are going to pay to the agency. They find a suitable candidate and negotiate their own payment arrangements.

I am not too familiar with Temp - Hire arrangements - maybe that caused some confusion? I know if we paid a temp for two months and hired them we would try to negotiate a better rate on the agency's placement fee.

ETA: maybe the arrangement was to pay the agency $20 per hour and if they hired you, the company would then pay you $20/hr which would be used when calculating the placement fee?

Message edited 5/24/2010 4:43:22 PM.

Re: Staffing Agency Warning

There is a bill rate (which the company pays) and then the rate the temp employee receives. Markup is usually 30-60%..depends.

Re: Staffing Agency Warning