Temporary Workers

Temporary workers are paid hourly or per project by the agency or personnel supply firm. In turn, the agency bills the client company for every hour of work, including any fees or commission. According to the American Staffing Association (ASA), temps receive a little more than 70 percent of the billable rate; the agency keeps the remainder. For example, if the temp is paid $21 an hour, the agency actually bills the client $30 per hour and keeps the remaining $9 as its commission. A 30 percent commission may seem high, but from this amount, the agency needs to pay the temp's Social Security, any training costs, job counseling, and office operating and administrative costs.

The hourly rate varies greatly depending on the type of work or occupation. In general, temporary or contract workers may make as little as $10 per hour (or $20,080 annually). In 2020, the median hourly wage was $21 ($43,680 annually), according to the ASA. A few may earn more than $100 per hour ($208,000 annually), depending upon the skills and experience required. Some agencies offer $50 an hour ($104,000 annually) or more for contract nurses. These estimated annual earnings only apply to temps who remain employed full time throughout the year. It's not uncommon for temporary workers to experience breaks of unemployment between jobs. In addition, a stipend is offered to cover expenses such as travel and housing. This is often the case when the nurse or other health professional is assigned outside of their home base.

For most kinds of temporary work, the hourly rate is much higher than that offered to permanent employees. This is possible because benefits such as paid vacation, sick time, health insurance, and other perks are not usually offered to temporary workers. Some agencies may offer benefits to temporary workers after they log in a specific number of working days. Benefits may include medical coverage and short-term disability insurance, but the employee contribution for such benefits is usually higher compared to the contribution paid by full-time, permanent workers. Many temps receive insurance benefits from other sources, most often a spouse working in a full-time job.