Gig Economy
March 13, 2024

Learn How Staffing Agencies Handle Staff Pay

Discover how temp agencies profit from your pay and how Bacon offers a transparent alternative.

Bacon Inc

Navigating the world of temporary employment can be both exciting and daunting, especially when considering the financial aspects. A common question among temp workers is, "How much do temp agencies take from my pay?" Understanding the financial arrangements between temp workers and agencies is crucial for anyone looking to dive into temporary work. Let's unravel this often complex topic and explore a more transparent solution offered by platforms like Bacon.

Understanding the Traditional Temp Agency Model

Temp agencies act as intermediaries between businesses and workers, providing a service to both parties. They charge businesses a fee for this service, which is where their profit mainly comes from. For workers, this means that the rate agreed upon by the agency and the business includes the agency's markup.

The Markup

The exact amount an agency takes from what the business pays can vary significantly. Typically, an agency will charge the business a markup on the hourly rate paid to the worker. This markup can range anywhere from 25% to 100% of the worker's pay rate. For example, if a company pays $20 per hour for a temp worker, the worker might only receive $15 per hour, with the remaining $5 (or 25%) going to the agency as part of their fee.

Factors Influencing Agency Fees

Several factors can influence the markup or fee charged by a temp agency, including:

  • The industry or sector.
  • The rarity or demand for the skillset.
  • Geographic location.
  • The duration and complexity of the job assignment.

Transparency and Negotiation

While some agencies are transparent about their fees, others may not be as forthcoming. It's crucial for temp workers to inquire about and understand the breakdown of their pay before accepting assignments. Some negotiation might be possible, especially for highly skilled or in-demand roles.

Bacon: A Transparent Alternative

Unlike traditional staffing agencies, Bacon offers a more transparent and direct approach to temp work. Here’s how:

  • Direct Pay from Businesses: Workers on Bacon are paid wages set directly by the business, eliminating the guesswork of how much goes to the agency versus the worker.
  • All-in-One App: Bacon simplifies the process by allowing workers to find jobs, manage schedules, and receive payments all within one app, providing a seamless and efficient experience.
  • No Hidden Fees: With Bacon, what you see is what you get. The wages listed for each job are exactly what the worker will receive, fostering a transparent and trustworthy environment for both businesses and workers.

While traditional temp agencies play a significant role in the employment landscape, their financial arrangements can often leave workers wondering about the fairness of their compensation. Platforms like Bacon are changing the game by offering a transparent, direct-to-worker payment model that benefits both businesses and workers. By choosing Bacon, workers can enjoy the flexibility of temp work without the uncertainty of traditional agency fees.

For more information on how Bacon is transforming the temp work industry, visit

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