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Private Employment Services

April 13, 2006

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There are different types of employment agencies. Some deal solely with placing temporary help, while others specialize in placing managerial candidates within a specific industry. All employment agencies engage in some method of screening and referring applicants to the employer.

Some agencies also perform selection functions in addition to recruitment. These agencies may:

• Interview applicants.
• Determine their qualifications.
• Administer job skills and knowledge tests such as typing.
• Verify credentials and check references.

Increasingly, some agencies are also maintaining all records on applicants and providing services including:

• federal and state tax withholding
• employee benefits
• payroll

These agencies are involved in what is known as employee leasing.

Since employee benefits constitute an average of 37 percent of an employer's payroll, there can be substantial cost savings to an employer choosing to use a temporary employee who is "payrolled" by the employment agency.

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