Corporate staffing agencies provide temporary staff on Contract basis, contract staff and temp-to-perm (or contract-to-hire) or Corp to Corp C2C employees to businesses. Their services may be requested for a variety of reasons, from a need for flexibility in a business to a desire to save money in the hiring process. Corporate staffing companies can make money in several different ways.
Providing Flexible Staffing
Commonly, corporate staffing agencies provide good employees to companies with a sudden or ongoing need for flexible staffing. They will provide employees for short or temporary period on contract basis. Because these companies do not want to hire a permanent employee but have a need for good staff to fill specific positions, corporate staffing agencies can provide as-needed employees while charging the same cost in salary plus benefits a regular employee would cost the company. Most staffing companies that provide this service negotiate a percentage of any hourly wage a company wants to pay a temporary worker. The regular hourly wage goes to the staffer; the staffing company keeps the percentage. Because the contract is negotiated between both the worker and the corporation seeking a temporary worker, staffing companies do not have to worry about paying employees when they are not needed, providing additional savings.
Avoiding Fringe Benefits
Unlike regular companies, which often provide generous fringe benefits to employees for retention or contractual reasons, few corporate staffing companies provide benefits. Because this cost is not part of the staffing company's expenses, they are able to charge less overall for an employee than some corporations would pay and still make a generous profit.
Contract-to-Hire or Corp to Corp
In some cases, corporations use staffing agencies as a means to find good employees rather than a way to fill temporary positions. These are contract-to-hire or Corp to Corp jobs. Because there is a clear end to the temporary employee's obligation to the staffing company, the negotiated fee per hour is often higher than that of a standard temporary or contract worker.
Corporate Staffing Company Rates (Contract job Rates)
Depending largely on the level of the employees and the type of staffing provided, corporate staffing companies' profits vary widely. In addition, staffing companies that specialize in different industries, such as legal or computer services, often demand higher fees. Billing rates can vary from a 25 percent to 100 percent markup on the contract employee's base salary. Some corporate staffing companies also provide key employees to companies for a flat fee. Companies that want to hire placed employees before the temporary contract is up may also pay a flat fee for that right.
