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Thousands of temp jobs in danger
Former Member
Posts: 1,876,323 The Mix Honorary Guru
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I don't understand business all too well, so maybe people can clarify...
Just how is this gonna improve things with the credit crunch?
I don't understand business all too well, so maybe people can clarify...
Just how is this gonna improve things with the credit crunch?
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Note the last sentence 'business has been fully engaged in the review'...
Didn't want to panic the little people with such trivialities I guess...
It is a lot less hassle, the temp agency takes care of the weedig out the people and finding canidates which costs the company time and money, preparing them, you don't have to worry about going thru all the hassle and time/money of hiring somebody to worry about them quitting in a week and irrilevent here, but here (in the US) depending on the type of job, it often does cost less to go thru an employment agency as then you don't have the added expenses of health/dental/life insurance, workers comp, retirement/401k benefits ect. I got my current job thru a temp agency. They paid the agency $5 more an hour than they paid me, so $800 more a month. However, I know what my employer pays for my health insurance and thats over half of that for that one benefit alone.
Plus, going around finding office jobs is a pain in the ass for the person looking and by going thru a temp agency the employer and worker can pick and choose for their best fit.
if the total cost to a company to hire a temp is £100 of which £90 is the temp's wages and £10 is the fee from the employment agency they'll have to shell out £15 in VAT now instead of £1.50
I'll be surprised if the government don't scrap this tax hike, especially given the economic climate and how close we're getting towards the next election. Plus Gordon Brown is the Prime Minister no one voted for just got the job through the side door .. so he'll want to be doing everything he can to win votes.
Yeah, but is it worth it?
When I worked for a temo agency when I was young I was getting paid £4.50 an hour. The company I was temped out to was paying £12 for me.....
It obviously must be otherwise they wouldn't do it. Also you might get peaks of business where you need someone to just cover for a few months, maternity leave, etc. Plus as stated they don't need to worry about payroll, NI and tax, or finding people or worry about getting rid of them after, the agency will deal with all of that.
That's quite common .. often at the low end temping agencies can earn more per hour then the person doing the actual work.
I remember the girl that came to work in the company I was in - and was only after a few months we found out she was only getting a fraction of the money the company was giving to the employment agency. Can't remember how much but was less then half.