Employment
Monday, June 1st, 2009
How does an employment agency charge for its services?
I am thinking about starting an employment agency and would like to know how they charge. Do they charge the person who needs an employee or the person who needs employment? How do they know if the person has been employed by the company? Do they just pay for the lead? What is the usual rate? Any info would be appreciated!
The employment agency charges the customer. This means the Co looking for an employee.
It charges per hour of “usage” of the employee.
What happens is that the employee is an employee of the employment agency, but not of the customer.
The employee is an asset of the employment agency.
So, let’s say you find a company that is loking for an employee.Let’s say you have the perfect match.
So you tell the company, and the company accepts.
You charge the company $25 an hour, but you pay your employee $15
If the company decides that wants to keep the employee, you need to negotiate some paymetn from the company, because you are loosing your asset. Maybe 3 or 4 months worth of payments received if they did not keep the employee.
Now, your challenge is that if you don’t get paid on time..you still need to pay your employee timely…. So you will need to have some cash available just in case. Not all companies pay timely.
Good luck!
Call me if you need an accountant 
Sesame Street – Gorilla Employment Agency
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