How much do staffing agencies charge companies in New Jersey?
Prices vary based on various factors, such as the agency in question and the role of the employee you’re hiring. In most cases, New Jersey staffing agencies charge 12 percent to 50 percent of the employee’s salary, with the percentage decreasing as the employee is paid more.
Staffing agencies usually work with moderately-skilled employees, including office workers and similar professionals, so it’s rare to pay at the higher end of the scale. They know that if their costs are too high, you won’t want to hire anyone, and market competition helps keep prices reasonable.
How are staffing agencies paid?
Payment to staffing agencies varies by company. However, most employment agencies get payment directly from your company, subtract their fees, and give the rest to the employee(s) you hired through them. This is a simplification, but it is generally how it works.
In other cases, staffing agencies may get paid separately from the employees. However, this is less common because they have a vested interest in knowing how much an employee is getting paid so they can get the fee they’re charging you.
As an employer, should I hire and use a staffing agency in New Jersey?
As mentioned above, that depends on whether or not you need their services. Situations vary by company, but in general, here are the reasons you should or shouldn’t use a staffing agency in New Jersey.
You should use a staffing agency if:
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You need to get a skilled employee on the job as quickly as possible
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You want to avoid having an open position while you search for a permanent employee
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You have a short-term project that requires someone with specialized skills
You should not use a staffing agency if:
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You do not have the revenue to cover increased hiring costs
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You’re trying to improve your brand as an employer through direct hiring
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You have company culture gaps that may not mesh with temporary employees
As an employer, how do I choose a staffing agency to work with in New Jersey?
The best way to choose between NJ employment agencies is to evaluate them based on the following factors:
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Cost
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Experience placing employees in similar roles
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Reviews of the company
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Size of the company
Which of these factors is the most important depends on your status and needs. For example, if you have plenty of money to spend and want to take the time to search for good employees, the cost isn’t an important factor. However, if your budget is tight, then the cost could be a significant factor.
Experience is usually the most important factor when looking at the staffing agencies NJ companies can use. If a company has a long history of placing employees at companies where those employees are a good match, chances are they understand the unique needs of the industry they focus on and can make sound judgments to help you.
Size is difficult to quantify for the best temp agencies NJ companies use. Should we measure staffing agencies NJ companies like by the number of potential recruits they have access to? What about the number of employees they place, or their revenue, or how many employees they have as a company?
What jobs are in demand in New Jersey?
According to Zippia, a major employment company, the following are among the jobs most in-demand in New Jersey. This list is determined by a combination of the total number of jobs and their recent speed of growth; a job with immense growth, but a comparatively low number of positions won’t be on this list.
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Home Health Aide
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Personal Care Assistant
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Electrician
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Food Runner
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Software Developer
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Business Analyst
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Certified Nursing Assistant
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Restaurant Crew Member
Medical jobs are particularly notable openings in New Jersey. As a result, they’re a primary focus for staffing agencies New Jersey companies can use. There weren’t enough healthcare workers to satisfy demand before the novel coronavirus started, and given the long-term damage to lungs that disease can cause, demand for health professionals is likely to remain high.
What is the job market like in New Jersey?
As of the middle of 2020, the job market in New Jersey - like everywhere else - is in disarray because of the coronavirus's impacts. However, generational pandemics aside, businesses will do better to look at the state's long-term trends and what the opportunities are after COVID-19.
In that context, New Jersey is about average for a job market. It usually performs somewhere in the mid-20’s for overall job growth and slightly outpaces overall wage growth. It’s hard to call this a good position because it objectively isn’t, but it’s also not a bad place for the state to be.
Rate of employment
According to the Bureau of Labor Statistics, New Jersey has an unemployment rate of around 16.6 percent as of June 2020. However, the novel coronavirus is an aberration in employment numbers and is not a good indicator of the normal rate of employment in the state.
Historically, the state has trended closer to a 3.8 percent unemployment rate, which is comfortably low by economic standards.
Number of people searching for jobs in New Jersey
Determining the actual number of people seeking jobs is difficult for many reasons, including the fact that there are no comprehensive databases. While we can roughly estimate the number of people aiming to get jobs based on factors like population and unemployment rate, this doesn’t take into account things like people from other states looking to move to New Jersey.
With that in mind, the comparatively low unemployment rate in New Jersey means that there are a decent number of jobs and enough people looking for them to fill them. The state does not have fantastic growth, but it is a little above average.
Percentage of temporary/staffing workers in New Jersey
The percent of temporary workers across all industries is, like the number of people searching for jobs, difficult to calculate precisely. However, a study found that more than 60% of workers at some sites were temporary.
The numbers are especially high around the Port of Newark, whose frequently-changing work needs mean that many staffing agencies work specifically to serve it and provide only as many workers as companies working at the port require.
Business climate in New Jersey
The overall business climate in New Jersey is poor, despite growth in some areas. The New Jersey Business and Industry Association (NJBIA) considers it the least competitive state in the region, with higher costs of living and affordability challenges contributing to this issue.
Large companies and industries in New Jersey
Some of the largest companies in New Jersey include:
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Johnson & Johnson
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Conduent
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Merck & Co.
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Bed Bath and Beyond
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Automatic Data Processing
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Newell Brands
Industry details
Major industries in New Jersey include:
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Pharmaceuticals
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Financial Services
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Advanced Manufacturing
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Transportation
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Logistics
What are the best companies to work for in New Jersey?
People have different views of what makes a company the best place to work. However, companies that are popular among their current and former employees include:
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PTC Therapeutics
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Johnson & Johnson
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Zoetis
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BMW
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Mars, Inc.
Major employment hubs of the area (North, Central, South)
The major employment hubs of New Jersey include:
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North: Trade and logistics, thanks to the Port of Newark and proximity to New York City
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Central: Healthcare and Pharmaceuticals, especially in the New Brunswick area
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South: Entertainment, particularly around the Atlantic City region
New Jersey Growth and Population
New Jersey has approximately 9 million residents, although growth has slowed over the last few years. Most of its new population concentrates in the northern part of the state, where the thriving trade and transportation industries are continuing to grow.
Conclusion: Is it worth using a New Jersey Staffing Agency?
That depends entirely on your needs as a company. In general, it is worth going to a temp agency if you have a staffing problem they can alleviate and the money to afford their services.
New Jersey staffing agencies are particularly useful when you want to get someone with professional skills as soon as possible. Many companies do this to cover gaps in services, particularly when they’re looking for a permanent staff member.
Alternatively, you may be able to hire a temp into a permanent position by paying a fee to the temp company (contingent on the employee’s acceptance, of course). This can simplify the hiring process if you have a lot of roles you need to fill.