Why do companies use recruitment agencies?

How do tax payers fund agencies to get rich and subsidise big companies to use agencies?

  • There has to be a scam somewhere among this as there are so many agencies or leeches as I prefer to call them: thousands of part time workers that have no real security and thousands ...show more

  • Answer:

    The cost of paying the agency for providing staff is an expense against tax, But so would be cost of employing someone directly. You don't spend money so as to save 20% tax on the money you have spent. Employers use agencies because they are flexible. If a company needs a certain number of workers to operate effectively, bringing in agency staff to cover absences is much more efficient that employing extra staff full time to cover intermittent absences. ============ You ask "why are they allowed to use agencies?". Why should they not be allowed to engage another firm to provide then with additional labour when they require it.

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The agency charges the employer more than they pay the worker. Simple. Employer likes it because no holiday pay or pensions or redundancies. Staff get dumped on.

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