As with any employment agency, a construction staffing agency mainly works with contractors and construction companies. According to the contract with the company that hires these agencies, these agencies recruit key construction personnel executives or managers and provide temporary skilled and unskilled labour or temporary-to-permanent employees. Companies like construction staffing agency in Indiana that provide these services will be able to earn multiple profit streams.
The recruitment process: Upfront flat-fee retainers are paid by contractors before they hire someone from the agency’s pool of recruits. The construction staffing agency in Indiana makes money both from contractors and potential employees. Recruiting agencies charge companies up to 50 percent of the first year’s salary.
The Temporary Workforce: Construction companies sometimes turn to staff agencies to hire temporary workers if they fall behind schedule or lose valuable employees. Depending on the construction company’s needs, these workers may be skilled or unskilled workers. Depending on the skills of the temporary worker, the staffing agency charges an additional fee on top of the temporary employee’s salary. Suppose an unskilled laborer earns $10 an hour, but the staffing agency charges $15 or more for her work.
Temporary-to-permanent employees: It is common for construction companies to hire temp-to-perm employees. A temp-to-perm arrangement allows the construction company to try out potential employees for up to 90 days before hiring them. Depending on the agency’s internal fee structure and contract, the staffing agency adds up to 50 per cent of the hourly wage. Construction companies decide whether to keep temp-to-perm employees after the trial period or terminate them.
Fees and Profits: Most construction staffing agencies offer multiple employment services, which results in a higher profit margin. The construction companies contract with staffing agencies annually to save on hourly rates. Staffing agencies make their money in these situations by collecting a retainer and providing a large number of employees.
