Top Software & IT temporary staffing firms.

Temporary staffing — Frequently Asked Questions

What's the difference between temporary staffing and contract recruiting?

In temporary staffing, the agency is the worker's legal employer — they handle payroll, taxes, benefits, workers' comp, unemployment. The client pays an hourly rate to the agency. In contract recruiting (also called contract-to-hire or 1099 placement), the worker is either a W-2 employee of the agency (similar to temp) or an independent contractor billing the client directly. Temp staffing is the model used for short-term, repeatable roles (warehouse, hospitality, light industrial); contract recruiting is more common for professional/IT/specialized roles.

How much does temporary staffing cost?

The standard pricing is a markup on the worker's hourly wage — typically 35-65% above the base rate. A $20/hour worker bills at $27-33/hour to the client. The markup covers payroll taxes (~7.65% FICA + state unemployment), workers' comp insurance (varies by industry; 1-15%), agency margin (15-25%), and recruiting cost. High-volume contracts negotiate lower markup; specialty staffing (skilled trades, healthcare) commands higher markup because the candidate pool is thinner.

Who is the legal employer of a temp worker — the agency or the client?

The staffing agency is the worker's legal employer (W-2 employer of record). The agency pays the worker, withholds taxes, provides workers' comp coverage, and handles unemployment claims when the assignment ends. The client supervises day-to-day work but has no direct employment liability — they're paying for staffing services, not employing the worker. This is also why staffing agencies carry significant workers' comp policies; the liability follows the legal-employer designation.

What is temp-to-hire and how does conversion work?

Temp-to-hire is a pre-negotiated structure where the worker starts as an agency temp with a defined conversion path to client employment — typically after 90-180 days. Conversion fees vary: some agencies waive the fee entirely after an hours threshold (e.g., 520 hours / 13 weeks), others charge a percentage of annualized salary (10-20%), and some negotiate a flat conversion fee ($1,500-5,000). Temp-to-hire is popular when the client wants to evaluate fit before committing to direct employment.

How quickly can a staffing agency fill a temp role?

For high-volume, low-skill roles (warehouse, basic manufacturing, hospitality), a major staffing firm can have someone on-site within 24-48 hours — they typically maintain a benched pool of pre-screened workers waiting for assignments. For specialized roles (skilled trades, healthcare, niche admin), expect 5-14 days. Same-day fills happen in markets where the agency has deep candidate density, but they're not guaranteed unless contractually specified.