Monday, August 31, 2009

People Aren't Cows (So Don't Milk Them)

Temp agencies are paid by employers to manage temporary workers. For every hour a temporary employee (aka temp) works, a temp agency makes money. For example, an employer might pay the a agency $30/hour of work done, of which the temp might earn $20/hour. That $10/hour is called the agency markup. Talk about income tax!

A person who understands how temp agencies make money probably isn't going to feel too good about it. Do you know any worker that REALLY feels good about someone else profiting from the work he or she does? The answer is no. Here, I'll show you...
  • Fictitious Person #1: "I hate the IRS, but I love my temp agency!"

  • Fictitious Person #2: "My temp agency works hard. They deserve part of my income."

  • Fictitious Person #3: "I'd like to earn more, but my temp agency needs to make a living, too."

One can certainly find workers employed through a temp agency who do not complain, and there are people who rely heavily on temp agencies to find work. Those same workers would also not complain if you gave them a box full of money labeled "All The Cash Your Temp Agency Made From Work You Did".

In a recent news article on CNN.com, the Japanese Prime Minister Elect is said to have pledged to reduce hiring through agencies or temporary contracts. I guess when your country already has socialized medicine, the next thing you campaign about is reducing the use of temp agencies.

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