5 Ways Relying On Traditional Temping Agencies Might Be Costing You More Than You Think

Tues 9 Sep 2025

By OMJ Team

Smarter Staffing Solutions

Workforce Transparency

Hidden Costs of Temp Agencies

Business Cost Savings

For many businesses, temping agencies feel like the “safe” option when shifts need covering at short notice. They promise speed, reliability, and simplicity. But what’s less visible is the true cost of working through a traditional agency model.

Behind the scenes, agencies have mark-ups, and other costs that make temping more expensive than it needs to be. Here are five hidden costs you might not have considered and how Oh My Jobs (OMJ) is doing things differently to transform temping.

1. You're probably paying more than you think

Traditional agencies often add a hefty margin on top of a workers hourly rate. Sometimes, that can be as high as 15-20%.

For instance, if a candidates base rate is $30 an hour, an agency will typically allow 20% plus for annual leave, Kiwi Saver, Sick Leave, ACC levy, Bereavement leave and then add a 15% margin. This brings the total cost you pay to $42.30 an hour.

A digital staffing model, (like OMJ), connects candidates with clients, vs acting as an employer or agency. It is more of a marketplace for temp recruitment.

OMJ for example, charges $5 per hour as a fee (flat rate). So that same candidate would receive $30, and you only have to pay $35 an hour, saving $7.30 per hour.

Over just one week, that could save you around $300 per contractor. If you then equate that out to 52 weeks, it is $15,000 a year in potential savings.

Another option is you could pay a bit more to attract higher caliber talent? Either way, it's a win-win: Fair pay for workers and fair pricing for your business.

2. You don't always get the right fit

Agencies are restricted on who they send, based on who is in their database and available at that particular time. This leaves you with little control over who walks through the door. A poor fit can slow down operations, frustrate permanent staff and risk mistakes all of which costs time and money.

How OMJ helps: With OMJ, you can choose the contract temp based on their profile, skills and OMJ ratings, giving you confidence in who you are getting.

3. Slow and unreliable fill rates

When you're understaffed, every hour matters. Traditional agencies will rely on calling and manual processes, which can delay finding cover. Even worse, no shows or late cancellations are common, leaving you scrambling to plug gaps (often with expensive overtime).

How OMJ helps: The OMJ marketplace app, matches temp workers with available shifts. Plus with worker ratings and real time communications (you'll know up to date ETA's), means you're less likely to be left short staffed.

Two creative millenial small business owners working on social media strategy using a digital tablet while sitting in staircase

4. Inconsistent Staff Can disrupt your Team

One of the biggest hidden costs with agency temps is inconsistency. Different workers arriving each shift makes it harder to build rhythm, slows down processes and impacts team morale.

How OMJ helps: When you find a worker you like, you can favourite them for the future. That means less disruption, more familiarity, and a smoother team dynamic over time, whilst still have the benefit of temp staff.

5. Limited visibility and transparency

Agencies rarely share performance history, reliability data, or pay breakdowns. Without visibility, you're effectively booking blind. This lack of transparency increases risk and means you're never building a long term pool of trusted, proven temps. You can also be uncertain if the temp contractor will turn up?

How OMJ helps: OMJ puts everything at your fingertips from pay rates and timesheets to ratings, reliability indicators like ETA alerts. As you use the platform, you can create a list of favourites giving you great control and reducing risks. It's like having your own mini temp agency made simple.

Double exposure of business man hand working on blank screen laptop computer on wooden desk as concept

The Bottom Line

While agencies can feel convenient, the hidden costs stack up quickly. From inflated rates and slow turn around to inconsistent reliability and lack of transparency, relying on traditional temping agencies can actually cost your business more thank you think.

That's why many businesses are rethinking the agency model and turning to tech enabled hiring like OMJ: a progressive alternative that puts transparency, control, and speed in your hands, without the hidden markups. Happy days!