How much do staffing agencies charge companies in Los Angeles?
Actual costs vary by the employment agencies Los Angeles companies use, and there’s no universal standards. However, most companies charge anywhere from 12 percent to 50 percent of the hourly rate the employee will earn. The percentage fee goes down for higher-paid employees to ensure competitive pricing.
How are staffing agencies paid?
This also depends on the company. Most staffing agencies that Los Angeles companies work with are paid directly by you, the employer, and they will pay the employee after subtracting their fee from the total. This is simpler and easier if you have a lot of temporary employees. As such, many of the best staffing agencies in Los Angeles do things this way.
Is it worth going to a temp agency?
That depends on your needs as a company. If you’re looking for long-term help, a temp agency can help you fill the ranks while you take your time to look for a great long-term employee.
Similarly, if you have a sudden need for extra, specialized help on a short-term project, temp agencies can fill that position faster than almost anyone else.
Judging the size of Los Angeles staffing agencies is difficult. Some staffing agencies only have a few people on staff, but place a lot of employees each week. Other agencies have a lot of staff members, but place fewer employees because they want to be sure each one is right. As such, the size of the staffing agency is not as useful a metric as it might seem at first.
Note that many staffing agencies specialize in specific industries. The fact that an agency is large does not inherently mean it’s right for you. If you’re not sure whether an agency is the right fit for your company, ask them if they have experience placing employees of the type you need.
As an employer, should I hire and use a staffing agency in Los Angeles?
Whether or not you use a staffing agency depends on your needs as a company. Staffing agencies in Los Angeles can be great ways to get temporary employees, or even find permanent employees. However, they often cost more than hiring directly.
In short, you should use a staffing agency if:
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You need to find a qualified employee as quickly as possible
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You want to fill in a gap in your company while you search for a permanent employee
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You require someone with specialized skills for a short-term project
You should not use a staffing agency if:
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Your company does not have extra money to spend on hiring
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You’re trying to build up your brand as an employer
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You’re concerned about company culture gaps
What jobs are in demand in Los Angeles?
Some of the most in-demand jobs in Los Angeles (and California as a whole) right now are:
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Solar panel installers
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Home health aides and assistants
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Software programmers
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Statisticians
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Massage therapists
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Actuaries
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Healthcare positions, in general
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Nonfarm animal caretakers
Healthcare jobs are especially notable on this list thanks to the large size of the state’s population and the coronavirus's ongoing impacts. Many people will require long-term help and support thanks to damage to their lungs, so healthcare roles are likely to remain in-demand for the foreseeable future.
Incidentally, some temp agencies specialize exclusively in healthcare.
What is the job market like in Los Angeles?
As of mid-2020, the job market in Los Angeles is shrinking heavily. Glassdoor offers an excellent overview of the Los Angeles job market here, but positions are currently in free-fall because of the coronavirus.
However, as a major urban area, Los Angeles is expected to recover and get closer to its historic norms once the coronavirus is over. At that point, with a large number of positions opened, staffing agencies may become particularly important.
Here are some more details about the job market in the Los Angeles area.
Rate of employment
As of July 2020, the employment rate in Los Angeles is about 80%. Historically, its employment rate has been around 95% to 96%, which is a better number to base long-term plans for your business on.
Number of people searching for jobs
This is always hard to estimate with any degree of accuracy. Aside from the impacts of the coronavirus, Los Angeles is a major staffing center for the country and people from outside the city, and even outside the state, often search for jobs within it.
Percentage of temporary/staffing workers
The percentage of temporary workers, including those from staffing agencies, has gone up significantly over the last few years. Sometimes referred to as “gigs”, these jobs can make up 40% or more of all positions in areas like administrative staffing.
Temporary jobs are somewhat more common in office environments, with work that is consistent and predictable. They are less common in areas like restaurant services, who usually have enough applicants and a low enough skill threshold that they don’t need to bother with staffing agencies.
Business climate in Los Angeles
Despite the effects of the coronavirus, the overall business climate in Los Angeles is active and vibrant. The city has a particularly high emphasis on technology and trade, as well as some areas like manufacturing, aerospace, and the arts.
As the county itself explains, if Los Angeles County were a separate country, it would have the 19th-largest economy in the world, ahead of areas like Saudi Arabia, Switzerland, and Israel in their entirety.
Large companies and industries in Los Angeles
Here are some of the largest companies and industries in Los Angeles, which makes them areas that the best staffing agencies in Los Angeles often focus on. This list is determined by the number of employees within the county, not by revenue.
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County of Los Angeles
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Los Angeles Unified School District
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University of California, Los Angeles
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Kaiser Permanente
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Northrop Grumman Corp.
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Providence Health & Services
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Target Corp.
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Walt Disney Co.
Industry details
The largest industries in Los Angeles are:
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Trade, Transportation, and Utilities
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Government
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Professional Services
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Manufacturing
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Educational and Health Services
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Financial Activities
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Information Technology
What are the best companies to work for in Los Angeles?
The criteria for “best” varies, with some people evaluating factors like pay or commute time, and other people valuing work-life balance or company culture. As such, there are no companies that are universally the best to work for. However, some popular companies include:
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Ultimate Software
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Amrock
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Rapid Response Monitoring
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Intuit
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American Express
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Ericsson
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Custom Ink
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Edward Jones
If you want to improve your own workforce, consider researching these companies to see how they’re doing things differently than your business.
Major employment hubs of the city
Los Angeles leans heavily into industry clusters, or areas where similar businesses often group together. Some of the more notable clusters that staffing agencies Los Angeles companies rely on help for growing include:
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Westside: Entertainment
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South Bay: Aerospace
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Downtown: Professional services
City growth and population
According to the United States Census, Los Angeles has approximately four million residents as of 2020, with about a 5% growth over the previous ten years. This does not include residents of outlying areas who travel into Los Angeles for work. Many employment agencies Los Angeles companies work with specialize in recruiting from nearby areas, too, not just the inner city.
Conclusion: How do I choose a staffing agency to work with in Los Angeles?
The best way to choose between Los Angeles staffing agencies is to evaluate reviews of their company, their overall size, their experience placing employees in your industry, and their price.
How important each factor is depends on your company. For example, if you’re tight on cash, then the price is especially important. However, if money isn’t an issue, then you can essentially dismiss the price and focus on finding the highest-quality companies.
Experience is particularly useful in this field. Staffing agencies who place a lot of people usually develop a good sense of the individual nuances and distinctions that make a good fit. Any company that asks questions and tries to learn more about you is generally a better choice than a company that only assures you they’ll give you a suitable applicant.