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Temporary Work Agency (Contract Staffing)

Last updated 29th Nov 2022


The term temporary work agency refers to employment companies that specialize in finding and placing employees in short-term positions. Hiring employees through temp agencies provides companies with access to much-needed resources, while at the same time allowing company management the opportunity to evaluate the contractor's skills.


Also known as contract staffing, and temp agencies, these companies work with their clients to fill a temporary need for additional resources. For example, a company may need to hire workers to backfill for permanent employees that are vacationing during the summer season. Contractors are also used to augment permanent staff on special projects that require a distinctive skill or talent.

Companies may also hire temporary employees as part of their screening process when filling full-time positions. Since there is no long term commitment to a temp employee, the employer can evaluate the worker's on-the-job performance and decide if they will offer a permanent position; eventually converting them to a full-time employee. This is referred to as a contract-to-hire arrangement.

Related Terms

termination benefits, constructive discharge, employment contract, implied employment contract, part-time job, phased retirement, probation, seasonal employment, technological unemployment

Moneyzine Editor

Moneyzine Editor