A temporary workers agency is a firm that connects businesses with employees for short-term roles. Unlike hiring an employee directly from a company, temp agencies provide hourly wages and handle payroll processing, tax withholding, and compliance with employment laws. They can help you find skilled employees for a variety of industries and specialized positions, such as marketing, accounting, or customer support. They can also provide a range of benefits, such as worker’s compensation, vacation days, and social security deductions.

When working for a temp agency, you are on “loan” to the client company and your employment with them ends when the work assignment does. The business pays the temp agency a fee for their services, and the agency takes care of additional payroll taxes like workers’ comp, unemployment insurance and government withholdings.

How to Transition from Temporary to Permanent Employment

Temp agencies might not always provide the best quality workers. For example, they may not provide detailed performance reviews or weed out underachievers. They might also fail to take into account that some temp workers are not as highly incentivized to perform well since their engagement is short-term.

Temporary staffing agencies must be aware of the conditions at their client (host) companies and ensure that these meet OSHA standards for training, hazard communication and recordkeeping. If they do not, they could be held jointly responsible by OSHA for the violation.