A while back I wrote about what I considered a skewed and economically unsound attack on the staffing industry by Matt Charney at Recruiting Daily. While I took issue with his corny mathematics, a Melinda gave him a lesson of what things look like from the staffing side:
Melinda 15 days ago
So you are blaming Temp Agencies for the pay? It's not the agencies, and believe me the, " billions in revenue off of the margins for cash these workers earn for them but never see a scintilla." You are completely wrong about. It's not the agencies who determine what to pay a temp worker, it's the client employer who dictates that, while they also tell the staffing agency what the mark up should be. The majority of small to mid-size agencies are getting squeezed out of making any profit at all. The costs include, payroll taxes, worker's comp, unemploymemt and if you are not self-funded then payroll funding costs. On top of that there are a number of companies that are also using Vendor Managment companies, which of course then is charging a service charge percentage to the staffing agency on top of the bill rate. It's not the temp agencies who are hurting people, it's the client companies that want to keep wages as low as possible because that is the easiest cost for them to control, labor. Squeezing every ounce of profit that would go to the temp employee and the agency is the name of the game, but don't blame temp agencies for the low wages that is way to simplistic.
Well done, Melinda!