Pros & Cons of Employment Agencies Vs. Temporary Agencies

Unemployed individuals often consider applying with an employment agency or at a temporary agency. Both employment agencies and temporary agencies provide options for people to start working and earn paychecks. Employment agencies and temporary agencies offer different benefits to job seekers. Applicants need to consider the pros and cons of each type of agency before enlisting with either one.


Work Stability -- Pro

For job seekers looking for permanent employment, work stability represents a pro for employment agencies. Employment agencies recruit employees for permanent, full-time positions with their clients. Employees who find a new job through an employment agency rest assured that their position is permanent. Temporary agencies hire employees to fill the short-term labor needs of their clients and do not offer the continued stability of an employment agency.

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Starting Salary -- PRO

Employment agencies provide higher starting salaries for employees, which represents another pro. Employment agencies receive compensation from the hiring employer which is normally a percentage of the employee's starting salary. The employment agency is motivated to negotiate a higher salary for the employee because this increases the compensation of the employment agency. Client companies pay temporary agencies for the hours worked by the employee. The temporary agency pays the employee a lower hourly rate and keeps the remaining money as compensation.


Fewer Opportunities -- Con

One con of employment agencies results from the fewer opportunities available. Because clients of employment agencies are making permanent hiring decisions, these companies spend more time considering whether or not to fill the position. This means fewer job opportunities continue through the process to the point of hiring new employees. Temporary agencies offer more employment opportunities because clients are not required to make hiring commitments with the workers.

Wait For Employment -- Con

Because employment agencies recruit employees for permanent employment, job seekers experience a longer wait before being hired. Clients of employment agencies want to interview candidates before choosing one to fill the position. The recruitment and interview process requires a longer timeframe to complete. Temporary agencies only provide employees for a short duration. Clients of temporary agencies prefer to skip the recruitment and interview process since the employment term is limited.