Temp & Contract - Common Terminology
The Module covers essential aspects of terminology and processes crucial for temp recruiters. Key topics include understanding the difference between pay rate (what the temp earns) and bill rate (what the client pays), along with the importance of calculating on costs related to temporary placements, such as payroll tax and insurance, which can be roughly 20% extra in Australia. It highlights the significance of margins and markups—margin being the difference between the cost of the temp and the charge-out rate, while markup is the added percentage cost based on the initial rate—illustrating why precise language in contracts is vital to prevent financial discrepancies. The video also discusses 'temp to perm' situations where a temp can be converted to a permanent employee, emphasizing the importance of charging a placement fee for such transitions. Additionally, the concept of preferred supplier arrangements (PSAs) reveals how agencies can secure ongoing work by mutually beneficial agreements with clients. Recruiters are advised on the importance of immediate reassignment of temps to maximize revenue and minimize downtime. The use of technology for timesheets and the critical nature of verifying legal work entitlements in Australia through processes like VIVO are also touched upon. Lastly, there is discussion on proactive recruitment strategies like reverse marketing, and the terminology used such as 'working temps' and 'availables' to describe candidates currently engaged or immediately ready for work, respectively. These insights equip recruiters with the knowledge to navigate and optimize temporary staffing efficiently.