Whole Reach

WholeReach · industry directory

Temp Staffing

The companies that define the temp staffing industry, each read on the same nine-check website rubric — a 0–100 score with the exact fixes — alongside the concepts, the developments and the questions that shape the field.

38companies tracked
35sites scored
84average site score
3blocked our scanner

The companies

35 companies in the temp staffing industry, each graded on the nine things that decide whether a buyer or an AI assistant can find and trust them online. Open any name for the full write-up and the specific fixes.

CompanyHQ / regionSite score
ADPwww.adp.comUS (Roseland, NJ; global)100 0 to fix
Bullhornwww.bullhorn.comUS (Boston, MA; global)100 0 to fix
Burnett Specialistsburnettspecialists.comUS (Austin, TX)100 0 to fix
Crelatewww.crelate.comUS (Kirkland, WA; North America)100 0 to fix
Frontline Source Groupwww.frontlinesourcegroup.comUS (Austin, TX)100 0 to fix
Insight Globalinsightglobal.comUS (Atlanta, GA; national)100 0 to fix
Allegis Groupwww.allegisgroup.comUS (Hanover, MD; global)92 1 to fix
Aston Carterwww.astoncarter.comUS (Hanover, MD; global)92 1 to fix
Checkrcheckr.comUS (San Francisco, CA; national)92 1 to fix
Employbridgewww.employbridge.comUS (Atlanta, GA; national)92 1 to fix
GSG Talent Solutionswww.gsgtalentsolutions.comUS (Austin, TX)92 1 to fix
HireQuestwww.hirequest.comUS (Goose Creek, SC; national franchise network)92 1 to fix
Kelly Serviceswww.kellyservices.comUS (Troy, MI; global)92 1 to fix
LINK Staffinglinkstaffing.comUS (Houston, TX)92 1 to fix
Robert Halfwww.roberthalf.comUS (Menlo Park, CA; global)92 1 to fix
Spherion Staffing & Recruitingwww.spherion.comUS (Atlanta, GA; franchise network)92 1 to fix
Voltvolt.comUS (Orange, CA; national)92 1 to fix
Openwork (formerly Meador Staffing Services)www.openwork.comUS (Austin, TX)90 1 to fix
Aerotekwww.aerotek.comUS (Hanover, MD; North America)88 1 to fix
Trabatraba.workUS (New York, NY; national)88 1 to fix
Instaworkwww.instawork.comUS (San Francisco, CA; US and Canada)80 2 to fix
JobDivawww.jobdiva.comUS (New York, NY; global)80 2 to fix
Randstad USAwww.randstadusa.comNetherlands (global; US operations)80 2 to fix
Shiftsmartshiftsmart.comUS (Dallas, TX; global)80 2 to fix
Adams Keeganwww.adamskeegan.comUS (Memphis, TN; multi-state)74 3 to fix
Express Employment Professionalswww.expresspros.comUS (Oklahoma City HQ; franchise network)72 3 to fix
PeopleReadywww.peopleready.comUS (Tacoma, WA; national)72 3 to fix
TempWorks Softwarewww.tempworks.comUS (Eagan, MN; North America)72 3 to fix
TrueBluewww.trueblue.comUS (Tacoma, WA; national)72 3 to fix
Adeccowww.adeccousa.comSwitzerland (global; US operations)70 3 to fix
ManpowerGroupwww.manpowergroup.comUS (Milwaukee; global)68 3 to fix
E-Verifywww.e-verify.govUS (Washington, DC)62 4 to fix
LaborMAX Staffinglabormax.netUS (Denver, CO; national branches)62 4 to fix
Express Employment Professionals — Austin Northwww.expresspros.com/us-texas-austin-northUS (Austin, TX)60 4 to fix
Wonolowww.wonolo.comUS (San Francisco, CA; national)50 5 to fix

70+ solid   45–69 gaps   under 45 costing customers

Sites we couldn’t reach

3 businesses whose website blocked our scanner — common when a site filters datacenter traffic, and not a sign the site is broken. A blocked site is never scored zero.

Avionté · www.avionte.com ↗Indeed Flex · indeedflex.com ↗Paychex · www.paychex.com ↗

Who defines the temp staffing market

The firms, funds and institutions that set the terms in temp staffing — context, not local listings; never scored.

Adams Keegancompetitor

An outsourced HR, payroll, benefits and employer-compliance provider working with employers across the Southeast and Texas. Included as the PEO-model comparison point: when a client's real problem is HR administration and benefits for its own workforce rather than filling shifts, a PEO or ASO — not a staffing agency — is the right answer, and the two models are routinely confused in the sale.

Adeccocompetitor

The staffing brand of the Adecco Group, the world's largest staffing company, covering temporary and contract staffing, permanent placement, on-site workforce programs and outsourcing across office, industrial, manufacturing, logistics, call center and light industrial roles. Its scale, MSP relationships and national account coverage are the benchmark a regional agency is measured against on enterprise orders.

ADPtechnology source

Payroll processing, tax filing, time and attendance, benefits administration, HR compliance and a certified PEO offering. Relevant to staffing on both sides: as the payroll and tax engine behind an agency's own employer-of-record obligations, and as the PEO alternative a client may choose instead of engaging a staffing firm.

Aerotekcompetitor

Allegis Group's industrial and skilled-trades staffing brand, placing contract and contract-to-hire workers in manufacturing, warehousing and distribution, construction, maintenance, aviation and logistics. One of the most direct national competitors for light-industrial and skilled-trades orders.

Allegis Groupcompetitor

The largest privately held staffing company in the US and the parent of Aerotek, Aston Carter, Actalent, TEKsystems and Allegis Global Solutions. Relevant to a temp desk mostly through its operating brands and through AGS, which runs MSP programs that decide which suppliers see a client's requisitions at all.

American Staffing Association (ASA)authority

The national trade association for the staffing, recruiting and workforce solutions industry. Sets industry practice through its code of ethics and certification programs (CSP, TSC, CSC), lobbies on classification and labor policy, and publishes the industry's baseline data — including that nearly 2.2 million temporary and contract employees worked for US staffing companies in an average week in 2024, that staffing companies hired 12.7 million temporary and contract employees during 2023, and the weekly ASA Staffing Index. The first source to cite for any industry-size claim.

Aston Cartercompetitor

Allegis Group's business and professional services brand — accounting and finance, banking and insurance support, customer service and contact center, HR and administrative. The clerical and business-support counterpart to Aerotek within the same group, and a frequent competitor on office temp orders.

Aviontétechnology source

An end-to-end staffing platform combining ATS/CRM front office with pay-bill back office, onboarding and a worker-facing mobile app for shift pickup and self-service. Particularly common in light-industrial and high-volume staffing, where the same system has to handle mass onboarding and weekly payroll for thousands of assigned workers.

Bullhorntechnology source

The most widely deployed applicant tracking and CRM platform in the staffing industry, covering job orders, candidate pipeline, submittals, placements, onboarding, time and expense, and analytics, with a large marketplace of integrated partners. For many agencies it is the system of record the entire desk workflow is built around.

Burnett Specialistscompetitor

A Texas staffing and placement firm with eight Texas offices including Austin, offering temporary and contract staffing, temp-to-hire, direct hire, payrolling and event/special-project staffing across accounting and finance, administrative and clerical, HR, legal, supply chain, engineering and IT. States it is the second-largest employee-owned staffing and placement firm in the US and a certified woman-owned business since 1997.

Checkrtechnology source

A background check platform built for high-volume and gig-scale hiring, covering criminal records, motor vehicle records, employment and education verification, drug testing coordination, and continuous monitoring, with workflow support for FCRA adverse action and fair-chance assessment. The screening layer most on-demand labor platforms and many staffing agencies run on.

Crelatetechnology source

An applicant tracking and recruiting CRM aimed at small to mid-size staffing and recruiting firms, with pipeline management, sourcing, email and SMS outreach, and lighter-weight back-office add-ons. The realistic system for a single-branch or boutique agency that cannot justify an enterprise platform.

E-Verifytechnology source

The federal web system operated by USCIS that compares Form I-9 information against DHS and Social Security records to confirm work authorization. Voluntary for most private employers, mandatory for Texas state agencies and many federal contractors, and increasingly required by client contract in light-industrial staffing. The staffing firm, as employer of record, is the party that must run and document it.

Employbridgecompetitor

Describes itself as a supply-chain and light-industrial staffing company with more than 220 locations nationwide, offering contract, project, temp-to-hire and direct-hire placement. Operates the Bluecrew app-based workforce platform alongside branch brands including ProLogistix, making it both a branch competitor and a platform competitor in warehouse and distribution.

Equal Employment Opportunity Commission (EEOC)authority

Enforces Title VII, the ADA, the ADEA, the Equal Pay Act and GINA, administers EEO-1 reporting, and has issued specific guidance on the application of anti-discrimination law to staffing firms and their clients as well as to automated selection tools. In staffing both the agency and the client can be liable for a discriminatory assignment decision.

Express Employment Professionalscompetitor

A franchised staffing network placing workers in light industrial, office services, skilled trades and professional roles through locally owned offices. The franchise model is why Express is the most visible staffing brand in Texas secondary markets and suburban submarkets — the local owner sells, recruits and services the account, with national brand, systems and back office behind them.

Express Employment Professionals — Austin Northcompetitor

A locally owned Express franchise serving north Austin and the surrounding suburbs, filling light industrial, warehouse, skilled trades, office services and professional roles on temporary, temp-to-hire and direct terms. Express also operates separately owned Austin South, Southwest Austin and Round Rock offices — an example of how the franchise model carves a metro into several independently owned territories.

Frontline Source Groupcompetitor

A Texas-founded staffing and recruiting firm operating since 2004, headquartered in downtown Dallas with 32-plus offices nationwide and hub offices including Austin, Houston, Plano, Frisco, Denver, Chicago and Phoenix. Offers contract staffing, contract-to-hire, direct hire (backed by a five-year warranty), executive search and vendor management, and states it recruits across the greater Austin metro.

Goodwill Central Texasauthority

A Central Texas nonprofit running free career services, the Goodwill Career and Technical Academy, the Excel Center adult high school, and internship and second-chance employment programs, alongside its commercial services and its GSG Talent Solutions staffing arm. A significant source of job-ready candidates in the Austin market, particularly for employers open to reentry and barrier-to-employment hiring.

GSG Talent Solutionscompetitor

A staffing agency serving Austin and Central Texas operated as a social enterprise of Goodwill Central Texas, placing candidates into jobs while funding Goodwill's workforce programs. A distinctive Austin competitor: it combines a conventional staffing desk with a nonprofit training and reentry pipeline, which matters for employers with second-chance hiring or community-impact commitments.

HireQuestcompetitor

A publicly traded staffing holding company operating a franchised branch network under brands including HireQuest Direct, Snelling, DriverQuest, HireQuest Health and TradeCorp, covering on-demand general labor, light industrial, clerical, drivers and healthcare support. The franchisor carries payroll funding, insurance and back office; franchisees run local sales and recruiting.

Indeed Flextechnology source

Indeed's flexible-work marketplace, letting workers browse and book shifts in hospitality, warehousing, industrial, retail, facilities and business support, with the platform acting as employer for the assignment. Directly relevant to Austin, where both Indeed and Indeed Flex have a substantial local presence, and a direct competitor for the same shift-fill orders a light-industrial branch works.

Insight Globalcompetitor

A large privately held staffing firm built on an aggressive branch and account-manager model, placing contract, contract-to-hire and direct workers across technology, healthcare, finance, government and light industrial. Notable for the speed and volume of its outbound sales motion into mid-market accounts.

Instaworktechnology source

An app-based staffing marketplace matching businesses with vetted hourly workers in hospitality, warehousing and logistics, manufacturing and light industrial, retail, food service and events. States more than 7 million workers across 400+ cities, 90% of jobs filled within 24 hours, and an all-inclusive hourly rate covering worker pay, insurance and background checks — positioned explicitly against the traditional agency's multi-day cycle.

Temp Staffing guides

How temporary and contract staffing works

The mechanics a first-time buyer needs: who employs the worker, who directs the work, what a job order is, how an assignment starts and ends, what the client is and is not responsible for, and the difference between temporary, temp-to-hire, contract, payrolling and direct hire. This is the foundational pillar every other page links back to.

Light industrial and warehouse staffing

The volume core of the business — warehouse and distribution, production and assembly, packaging, forklift and material handling, machine operation, sanitation, food production, and skilled trades. Shift structures, peak-season ramps, on-site programs, safety requirements and the realities of filling twenty people for a 6 a.m. start.

Office, clerical and administrative staffing

Front desk, data entry, customer service and call center, accounts payable and receivable, scheduling, medical front office, and project-based administrative support. Different screening, different skill testing, different bill-rate structure and a much longer average assignment than the industrial desk.

Worker classification and co-employment

The single largest legal exposure in the field: employee vs independent contractor, W-2 vs 1099 vs corp-to-corp, who the joint employer is, what a client can and cannot direct without assuming employer liability, and how staffing agreements allocate that risk. Written for operators, not lawyers, but grounded in the actual IRS, DOL, NLRB and Texas Workforce Commission standards.

Bill rates, markup and gross margin

How a bill rate is actually built — pay rate plus burden plus margin — what burden really includes, why a markup percentage and a gross-margin percentage are not the same number, and how overtime, holiday, shift differential and workers' comp class code change the math. The page a client's procurement team reads before negotiating.

Temp-to-hire and conversion

Conversion fees and declining fee schedules, buyouts, guarantee periods, the try-before-you-hire logic, and the friction points: a client hiring a worker off assignment without paying, a worker recruited around the agency, and how contract language handles both.

Safety, workers' compensation and OSHA on assignment

The host employer and the staffing agency share the duty to protect a temporary worker. Site-specific hazard training vs general safety training, who walks the site before the first shift, injury reporting and return-to-work, workers' compensation class codes and the experience modifier, and Texas's non-subscriber option and what it means for an agency.

Screening, background checks and onboarding compliance

I-9 and E-Verify, background checks under the FCRA including the pre-adverse and adverse action sequence, ban-the-box and fair-chance rules, drug-testing policy including post-accident and reasonable-suspicion testing, skills testing, reference checks, and the documentation an agency must retain as the employer of record.

Wage and hour compliance

Minimum wage, overtime and the FLSA exemption tests, regular rate calculation when a worker holds two pay rates or receives a shift premium, rounding and timekeeping, travel and waiting time, meal and rest break practice, pay transparency requirements in job postings, and the paid-sick-leave ordinance question in Texas.

Volume recruiting and sourcing

Filling many seats fast: job-board and programmatic advertising economics, text-first apply flows, referral bonuses, rehire and redeployment pools, open-house and on-site hiring events, community and workforce-board partnerships, and second-chance and reentry sourcing channels.

Retention, redeployment and no-shows

The operational metrics that decide whether a light-industrial branch is profitable: no-show and first-day fall-off rates, week-one and week-four attrition, redeployment of workers coming off assignment, stay-interview cadence, attendance policy, transportation and childcare barriers, and pay-frequency options.

Client acquisition and account management

How staffing sales actually works — territory and vertical targeting, service agreements and credit terms, the safety and site walkthrough before the first order, service-level expectations, quarterly business reviews, and why a firm should sometimes decline an order (bad site, bad class code, bad credit).

MSP, VMS and supplier programs

Selling into a managed program: what an MSP does, how a VMS distributes requisitions, supplier tiers and release times, VMS fees taken out of the bill rate, rate cards, scorecards and off-boarding, and the honest trade — volume and predictability in exchange for compressed margin and lost client relationship.

Staffing technology stack

Front office (ATS, CRM, job order management), back office (time capture, pay-bill, invoicing, tax filing), worker-facing apps for shift pickup and clocking, background and drug screening integrations, onboarding and I-9/E-Verify tooling, and where automation and AI screening help versus where they create audit exposure.

Payroll funding, cash flow and agency finance

The constraint that kills more staffing firms than competition: payroll clears weekly, invoices settle in 30 to 60 days. Days sales outstanding, payroll funding and invoice factoring, credit checks on new clients, concentration risk, unemployment tax rate management, and how a growing agency runs out of cash while profitable on paper.

Austin and Central Texas labor market

Where the orders come from locally: distribution and logistics along the I-35 corridor, semiconductor and advanced manufacturing, construction and skilled trades, healthcare support, and the events and hospitality peaks. The public workforce apparatus — the Texas Workforce Commission, Workforce Solutions Capital Area, Goodwill Central Texas and Skillpoint Alliance — and how a private agency works alongside it rather than against it.

Concepts

W-2 vs 1099 vs corp-to-corp
The three ways a worker gets paid on an assignment. W-2: the staffing firm is the employer, withholds taxes and carries workers' comp and unemployment. 1099: the worker is an independent contractor and carries all of it. Corp-to-corp: the agency contracts with the worker's own entity. Only the facts of the relationship decide which is lawful — a signed agreement calling someone a contractor does not make them one.
Right to control (IRS common-law test)
The IRS common-law test asks who has the right to direct and control the work, weighing behavioral control (instructions, training), financial control (investment, unreimbursed expenses, opportunity for profit or loss, availability to the market) and the type of relationship (contracts, benefits, permanency, whether the work is a key business activity). The right to control matters even when it is never exercised.
DOL independent contractor rule (FLSA economic reality)
The Wage and Hour Division's regulation for when a worker is an employee under the Fair Labor Standards Act, applying a multi-factor economic-reality analysis. The standard has swung between administrations — a 2021 rule, a 2024 replacement, and a February 2026 proposal to rescind the 2024 analysis and return to the 2021 approach — so the safe operating posture is to document the underlying facts, which no rule change alters.
Texas Workforce Commission employment status
For Texas unemployment tax and wage-claim purposes, TWC applies its own common-law and 20-factor direction-and-control analysis, independent of the IRS and DOL. A worker can be a contractor for one agency's purposes and an employee for another's. TWC status determinations are what drive an agency's state unemployment tax account and its exposure on wage claims.
Joint employer and the NLRB standard
Two entities are joint employers when both control essential terms and conditions of employment — wages, hours, scheduling, supervision, discipline, hiring and firing. The NLRB's 2023 expansion (which would have counted reserved and indirect control) was vacated by a federal court in March 2024 and formally withdrawn in February 2026, leaving the narrower 2020 standard requiring substantial direct and immediate control.
Co-employment risk
In staffing, co-employment is normal, not a defect — the agency and the client each hold part of the employer role. Risk arises when the client's conduct blurs the line: putting temps in the client's HR system, running the client's discipline process, promising raises, or treating temps as indistinguishable from employees for benefits eligibility. Contract language and consistent practice are the controls.
PEO vs ASO vs staffing agency
A staffing agency recruits and supplies workers it employs. A professional employer organization co-employs a client's own existing workforce under a client service agreement, handling payroll, benefits and comp. An administrative services organization does the same administrative work without co-employment — the client remains the sole employer of record.
Certified PEO (CPEO)
An IRS designation under which a PEO is solely liable for federal employment taxes on wages it pays, so the client is not exposed if the PEO fails to remit. Certification requires bonding, independent financial review and ongoing reporting. It is the main structural distinction a buyer should ask about when comparing PEOs.
Payrolling and employer of record
The client has already found the worker and asks the agency only to employ and pay them. The agency is the employer of record — it runs payroll, withholds, insures and carries the comp and unemployment exposure — with no recruiting. Priced at a lower markup than recruited placements because the sourcing cost is zero, but the liability is identical.
Workers' compensation class codes and the experience modifier
Every job is assigned a classification code carrying its own rate per $100 of payroll; a clerical code and a roofing code differ by an order of magnitude. The experience modification rate then multiplies that premium up or down based on the firm's own claims history versus its class average. Both belong in the bill rate — an agency that quotes a single markup across all class codes is losing money on the dangerous ones.
Texas non-subscriber status
Texas is the state where private employers may decline to carry workers' compensation insurance. Non-subscribers give up the exclusive-remedy protection and can be sued directly for negligence, without the usual common-law defenses. For a staffing firm this is a live decision, and clients routinely require subscriber status and a certificate of insurance before the first shift.
OSHA multi-employer worksite doctrine and the host/agency shared duty
OSHA can cite more than one employer on a site — the one that created the hazard, the one that controls the site, the one whose employees are exposed, and the one able to correct it. Under OSHA's temporary worker guidance the host employer and the staffing agency share the duty for a temp's safety: the host generally provides site-specific hazard training and controls the conditions, the agency provides general awareness training and must not place a worker into a hazard it knows about.
Temporary worker safety training
The practical division of labor: the agency trains on general workplace safety, right-to-know, injury reporting and the right to refuse unsafe work; the host trains on the actual machines, chemicals, lockout/tagout, PPE and emergency procedures at that site. The agency should walk the site before placing anyone and document what it saw, because 'we didn't know' is not a defense.
I-9 and E-Verify
As the employer of record the staffing firm — not the client — completes Form I-9 and retains it, verifying identity and work authorization within the statutory deadlines. E-Verify is the federal electronic check against government records; it is voluntary federally but mandatory for Texas state agencies and for many federal contractors, and increasingly required by client contract.
Ban-the-box and fair-chance hiring
Laws and ordinances that bar asking about criminal history on an initial application or before a conditional offer, and that require individualized assessment of the offense's relationship to the job. Coverage varies by state and city and by public versus private employer, so a multi-state agency's application must be built to the strictest jurisdiction it recruits in.
Background check and FCRA adverse action
A background check run through a consumer reporting agency is a consumer report under the Fair Credit Reporting Act. That triggers a standalone written disclosure, separate authorization, and — if the report will cost the applicant the job — a pre-adverse action notice with a copy of the report and the summary of rights, a reasonable waiting period to dispute, and then a final adverse action notice. Skipping the two-step sequence is one of the most commonly litigated errors in staffing.
Drug testing policy
What is tested, when (pre-placement, random, reasonable suspicion, post-accident), by what method, and under whose policy — the agency's or the client's. Complications include DOT-regulated roles with their own mandatory program, state marijuana laws that conflict with client requirements, and post-accident testing practices that can chill injury reporting.
Wage and hour, overtime and the FLSA exemption tests
Non-exempt workers must receive overtime at one and a half times the regular rate above 40 hours in a workweek. Exemption requires meeting both a salary basis and threshold and a duties test (executive, administrative, professional, outside sales, computer). The regular rate is not the base rate — it must absorb shift differentials, non-discretionary bonuses and multiple pay rates in the same week.
Rest and meal breaks
Federal law does not require meal or rest breaks, but if a short break of roughly 20 minutes or less is given it must be paid, and a bona fide unpaid meal period must be genuinely duty-free. Several states impose their own break mandates; Texas does not, so on Texas assignments the client's own policy controls and the agency's timekeeping must match how breaks are actually taken.
Paid sick leave ordinances and Texas preemption
Austin, San Antonio and Dallas each passed municipal paid-sick-leave ordinances that were blocked in court, and Texas subsequently enacted broad state preemption of local employment mandates. The practical result is that a Texas staffing firm has no statewide or citywide sick-leave obligation — but multi-state agencies and clients with national policies frequently apply one anyway by contract.
Pay transparency
A growing set of state and city laws requiring a good-faith pay range in job postings, and in some places disclosure on request or a bar on asking salary history. It reaches staffing firms directly, since the posting is usually the agency's. Texas has no statewide requirement, but a national job board posting can still trigger another state's rule.
EEO-1 reporting
The annual EEOC filing of workforce demographics by job category, race/ethnicity and sex, required of private employers with 100 or more employees and of covered federal contractors. Staffing firms count their temporary workers, which pushes many agencies over the threshold far earlier than their internal headcount would suggest.
Bill rate and pay rate
The pay rate is what the worker earns per hour. The bill rate is what the client is invoiced per hour. Everything the agency must cover — employment taxes, workers' compensation, unemployment, benefits, recruiting, branch overhead and profit — lives in the difference between the two.
Markup and gross margin
Markup is expressed against pay rate (bill rate divided by pay rate, minus one). Gross margin is expressed against bill rate (gross profit divided by bill rate). They describe the same dollar spread from opposite ends and are routinely confused in negotiation, always in the buyer's favor. Quote and compare in one convention and state which one.
Spread
The raw dollar difference between bill rate and pay rate for an hour worked, before burden is subtracted. Useful as a quick desk-level check, misleading as a profitability measure, because two orders with identical spread can have very different burden depending on class code, overtime and benefit eligibility.
Burden
The employer-side cost of employing the worker beyond wages: the employer share of FICA, federal unemployment tax (FUTA) and state unemployment tax (SUTA), workers' compensation premium at the applicable class code, any benefits or ACA coverage, and paid time off where offered. Burden varies by state, by class code and by the agency's own unemployment experience rate.
Fully-burdened cost
Pay rate plus all burden — the true hourly cost of the worker to the agency before any overhead or profit. The number a bill rate must clear. Agencies that price off pay rate alone discover the gap only when the workers' comp audit or the unemployment rate notice arrives.
Conversion fee and fee schedule
What the client owes to hire a temporary worker onto its own payroll. Usually either a flat fee, a percentage of the worker's first-year salary, or a declining schedule under which the fee drops with each month or each hundred hours the worker stays on assignment and reaches zero after a set period. The schedule is the single most negotiated clause in a temp-to-hire agreement.
Direct hire fee
A one-time placement fee for a permanent hire the agency recruits but never employs, typically a percentage of first-year compensation, billed on start date. No burden, no payroll and no ongoing revenue — the opposite cash profile from a temporary assignment, which is why some agencies treat it as a separate desk.
Buyout
A negotiated payment that ends the conversion obligation early, letting the client hire a worker before the fee schedule has run down. Also used for the reverse problem — a client that quietly hired a worker off assignment and now settles rather than litigate the contract.
Guarantee period
The window after a direct-hire placement or a conversion during which the agency will replace the worker at no charge, or refund on a sliding scale, if the placement fails. Typically 30 to 90 days. The fine print matters: whether a replacement or a refund, whether it survives a layoff, and whether the client must have paid the invoice on time to invoke it.
MSP and VMS
A managed service provider runs a client's entire contingent workforce program — supplier selection, rate governance, compliance and consolidated invoicing. A vendor management system is the software that distributes requisitions to approved suppliers, tracks submittals and captures time. Together they turn a relationship sale into a competitive rate-card process.
Supplier tier
The position an agency holds in a managed program. Tier-one suppliers see requisitions first and hold a release window; lower tiers see the same order minutes or hours later, when the good candidates are already submitted. Tier placement, not recruiting skill, often determines fill share inside a VMS.
VMS fee
The percentage the VMS or MSP takes, usually deducted from the supplier's bill rate rather than added to the client's cost. It comes straight out of gross margin, so a rate card that looks acceptable at first glance can be unworkable once the program fee, payment terms and any early-payment discount are applied.
Statement of work vs staff augmentation
Staff augmentation supplies hours: the client directs the work and pays per hour. A statement of work buys a defined deliverable at a fixed price or milestone schedule, with the supplier directing its own workers. The distinction changes who supervises, who bears performance risk, and how the engagement is classified — which is exactly why some clients relabel augmentation as SOW to route around a contingent-labor policy.
Fill rate
The share of received job orders the agency actually fills, and the honest measure of whether a desk is serving its clients. Read alongside how many orders were declined up front, since a branch can protect its fill rate simply by refusing hard orders.
Time to fill and order-to-fill lead time
Time to fill measures the interval from a job order being received to a worker accepting. Order-to-fill lead time is the operational version of the same question from the client's side — how much notice the agency needs to cover a shift. In light industrial these are measured in hours; in clerical and professional placement, in days or weeks.
Submittal-to-interview ratio
How many candidates the agency submits per interview granted. A poor ratio means the desk is not reading the order correctly, or is spraying candidates to look busy. Tracked alongside interview-to-offer and offer-to-start to locate exactly where a requisition is stalling.
Redeployment rate
The share of workers finishing an assignment who are placed onto a new one rather than lost. The cheapest recruiting an agency can do, since the worker is already onboarded, screened and known. A branch with a low redeployment rate is paying to re-recruit the same labor pool over and over.
Assignment length
How long a worker stays on one assignment. Some clients impose tenure limits — a hard cap after which a temp must be converted or rolled off — originally adopted to limit benefits-eligibility and co-employment exposure. Average length varies sharply by segment, with clerical and professional assignments running far longer than light-industrial ones.
Turnover and attrition
The rate at which assigned workers leave, split into first-day fall-off, week-one, and post-week-four attrition because the causes and the fixes are entirely different. Early attrition usually points to a mismatch between what the recruiter described and what the site actually is.
No-show rate
The share of confirmed workers who do not appear for a shift. The defining operational metric of light-industrial staffing and the reason branches over-recruit, confirm the night before and keep a standby list. Common drivers are transportation, shift timing, pay frequency and a competing same-day offer from an app.
Headcount vs hours billed
Headcount counts bodies on assignment; hours billed counts revenue. They diverge whenever hours per worker shift — overtime cuts, a client moving from ten-hour to eight-hour shifts, or a seasonal ramp of part-week workers. Revenue forecasts built on headcount alone miss the turn.
DSO and payroll funding
Days sales outstanding measures how long a client takes to pay. Because payroll is weekly and terms are commonly net 30 to net 60, a growing agency finances the gap out of its own working capital. Payroll funding is a facility that advances against approved invoices specifically to cover it.
Invoice factoring
Selling accounts receivable to a third party at a discount for immediate cash, sometimes bundled with credit checking and collections. Recourse factoring leaves the agency liable if the client never pays; non-recourse shifts that risk for a higher fee. Expensive money, and often the only money available to a young agency growing faster than it collects.
Credit risk on client receivables
The agency pays its workers whether or not the client pays the invoice, so every account is an unsecured extension of credit. Controls include credit checks before the first order, credit limits per account, watching concentration (one client that is a large share of revenue), stopping service on aged balances, and reading a client's own payment behaviour as an early distress signal.

What’s happening

Questions people ask

What is the difference between a staffing agency, a PEO and an EOR?

a staffing agency recruits and employs workers it places on your site, a PEO co-employs your existing workforce for HR and payroll, an EOR employs someone you found and directs -- the difference is who recruits and who directs

Who is the legal employer of a temporary worker?

the staffing firm is the employer of record for payroll, tax and workers' compensation, while the client directs the work -- and say plainly that some statutes reach the client anyway, which is what co-employment risk means

What is co-employment and is it something to be afraid of?

describe co-employment as the normal, expected condition of using contingent labor rather than a failure mode, and say the goal is to manage it -- discrimination, harassment, safety and wage-hour duties can attach to the client regardless of who signs the paycheck

What is the difference between bill rate, pay rate and markup?

pay rate is the worker's wage, burden is the employer's payroll tax, workers' compensation and benefits, markup covers recruiting, overhead and profit, and bill rate is the total -- markup percentages are not comparable across firms unless burden is defined the same way

What is burden and what goes into it?

list the components -- employer FICA, federal and state unemployment tax, workers' compensation premium, and any benefits or paid leave -- and say the actual percentage depends on the state, the class code and the experience modifier, so ask the firm to show its build

What is a conversion fee and how does it work?

explain that a conversion or buyout fee compensates the agency when a client hires a temporary worker directly, usually on a declining schedule tied to hours worked -- the amount and schedule are negotiated, so read the agreement rather than assume a standard

What is a temp-to-hire arrangement?

describe it as a trial period on the agency's payroll with a defined conversion point, and note the two things people forget: who pays for the trial hours and what happens if the client hires early

What is the difference between staff augmentation and a statement of work?

staff augmentation bills hours for people the client directs; an SOW buys a defined deliverable the vendor manages -- and warn that a badly written SOW that really is hourly supervision is treated as staff augmentation by auditors

What is an MSP and a VMS?

a managed service provider runs the contingent labor program, a vendor management system is the software; explain that the program fee usually comes out of the supplier's bill rate rather than the client's budget

What is the IRS common-law test for employee versus contractor?

describe the behavioral, financial and relationship factors and say the core question is the right to control; then be clear that no single factor decides and the determination is fact-specific -- classification calls need counsel

What is a joint employer and how is it different from co-employment?

explain that joint employment is a legal finding under a specific statute, while co-employment is the practical condition; note the labor-law standard has swung between reserved-and-indirect control and substantial direct control, so cite the current standard rather than a remembered one

What is Texas non-subscriber status for workers' compensation?

explain that Texas is unusual in not requiring most private employers to carry workers' compensation, and that non-subscribers lose the exclusive-remedy defense -- which is why staffing contracts and client agreements treat coverage as a negotiated point; confirm current law before advising

What markup should I expect to pay for light industrial or clerical staffing?

explain the markup build and the drivers -- pay rate, workers' compensation class code, overtime expectation, volume and payment terms -- and refuse a percentage, because a markup quoted without a defined burden means nothing

Why do two agencies quote very different markups for the same job?

say the pay rate behind the markup is usually different, and so is what is inside burden -- comparable quotes require the same pay rate, the same class code and the same overtime assumption, so ask for a bill rate build, not a markup

Is a lower markup actually cheaper?

say not necessarily: a low markup on a low pay rate produces turnover, no-shows and re-training, and the cost shows up in your production numbers rather than the invoice -- compare cost per productive hour, not markup

How do I calculate the fully burdened cost of a temporary worker versus a direct hire?

give the method -- direct hire wage plus employer taxes, benefits, paid time off, recruiting cost amortized, and the risk-adjusted cost of a bad hire, against the agency bill rate with no benefit or unemployment exposure -- and say the comparison turns on the reader's own benefit load

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