A temp agency (temporary employment agency) is a company that connects businesses that need short‑term workers with people looking for temporary jobs. It acts as the “middleman,” handling hiring, payroll, and basic screening while placing workers at client companies for limited periods.

What is a temp agency?

A temp agency is an organization that recruits and employs workers, then assigns them to client companies on a temporary basis. The workers are on the agency’s payroll, but they perform day‑to‑day work at the client’s workplace. Assignments can last from a single day to several months, and sometimes lead to longer‑term roles.

Key idea: the company “rents” labor from the agency instead of hiring the worker directly.

How a temp agency works

From an employer’s point of view:

  1. They define the role (skills needed, duration, pay range).
  2. They contact a temp agency and agree on rates and terms.
  3. The agency searches its pool of candidates, screens and interviews them.
  4. The agency sends one or more workers to the client for the agreed period.
  5. The client pays the agency; the agency pays the worker.

From a worker’s point of view:

  1. You apply once to the temp agency and go through screening or an interview.
  2. Your skills and preferences are added to the agency’s candidate pool.
  3. The agency offers assignments that match your profile and availability.
  4. You work at different client companies, but you’re formally employed and paid by the agency.

What temp agencies actually do

Common services include:

  • Recruiting and advertising for open temporary roles.
  • Screening applicants (CV review, interviews, skills tests, background checks).
  • Matching workers with suitable short‑term or project‑based jobs.
  • Handling contracts, payroll, taxes, and some HR paperwork.
  • Sometimes training or upskilling workers between assignments.

Many agencies focus on entry‑level or lower‑skill positions (e.g., office support, warehouse work, basic customer service), where workers can be slotted in quickly with minimal training.

Pros and cons

For employers

Advantages

  • Fast way to fill urgent or seasonal staffing needs.
  • Less risk and admin: the agency is the legal employer and handles payroll and many compliance tasks.
  • Flexibility to scale staff up or down without long‑term commitments.

Drawbacks

  • Hourly cost is often higher than hiring directly, because the agency adds its fee.
  • Less direct control over who is hired and how they’re vetted.
  • Risk of cultural mismatch if the agency doesn’t understand the company well.

For workers

Advantages

  • Can find work faster by accessing many employers through one agency.
  • Flexible schedules and the ability to try different industries or roles.
  • Good way to gain experience, fill gaps in a CV, or get a foot in the door.

Drawbacks

  • Income can be inconsistent if assignments are irregular.
  • Many roles are lower‑paid and entry‑level.
  • Benefits (healthcare, paid leave, retirement) may be limited or not provided, depending on local laws and agency policy.

Temp agency vs. general staffing agency

Some sources use “temp agency,” “staffing agency,” and “employment agency” almost interchangeably. Others draw a distinction: temp agencies specialize in short‑term assignments, while broader staffing firms also handle temp‑to‑hire, contract, and direct‑hire placements for long‑term or specialized roles.

In day‑to‑day conversation, people often say “temp agency” for any firm that sends workers to companies, but technically it emphasizes the temporary nature of the work.

Simple example

Imagine a retail store that expects a holiday rush for two months but doesn’t want to hire permanent staff. The store calls a temp agency, explains it needs five cashiers for November and December, and agrees on an hourly rate. The agency sends five screened workers, pays them, and invoices the store at a higher rate that covers wages plus the agency’s fee.