Here's What Industry Insiders Say About Staffing In Construction Management

Staffing In Construction Management works in the same way as any other employment agency, but it focuses on workers and businesses in the construction industry. These firms recruit key construction personnel, such as executives or managers, and provide temporary skilled and unskilled labor, as well as temporary-to-permanent employees, according to the terms of the contract with the firm that hires them. Construction staffing firms that provide all or some of these services can profit from a variety of sources.

Efforts in Recruiting

Construction staffing companies profit from both construction companies and potential employees. The construction company pays upfront flat-fee retainers before hiring someone from the agency's pool of candidates. When an agency's recruit is hired, it charges the company a percentage of the position's first-year salary, up to 50%. Unless the position advertises that the fees for the position are paid by the employer, some agencies may charge a flat fee to the person looking for work in addition to the fees charged to the hiring company.

Temporary Workers

When a construction company falls behind schedule or loses key employees, it may seek temporary help from a staffing agency. Depending on the needs of the construction company, these workers can be skilled or unskilled. The staffing agency earns money by adding a fee to the temporary employee's pay. 

Employees who are on a temporary-to-permanent basis

A construction staffing agency is used by many construction companies to screen potential employees for employment. The construction company agrees to try out the candidate for up to 90 days in a temp-to-perm situation. The staffing agency adds a percentage of the person's hourly wage — up to 50% or more, depending on the agency's internal fee structure and contract — to the person's hourly wage. After the trial period, the construction company decides whether to keep or fire the temp-to-perm employee. After the 90 days, some construction staffing agencies may charge an additional "hiring" fee on top of the hourly percentage.

Profitability and Fee Structures

Profit margins for construction staffing agencies typically range from 25 to 50 percent, with the higher end being on the higher end when they offer multiple employment services. Some construction companies sign a yearly contract with a staffing agency to receive lower hourly rates. Staffing agencies make money in these situations by charging a monthly retainer and providing a large number of employees to the construction company.