At Twente Personeelsdiensten , we often hear that staffing agencies would be too expensive. Although we are competitively priced compared to our competition, we too get this comment regularly. Therefore, we would like to explain what makes up the cost price of a staffing agency. This provides a better understanding of the costs incurred "behind the scenes." All of these costs are calculated before the margin is added. By the way, the margin is not just profit, since it also pays for office staff, rental costs and the like.
Gross Wage
The first element is the hourly wage. This wage depends on the legal minimum wage, the collective bargaining agreement salary scales or a client's terms of employment. We must follow the employer's hirer's remuneration. This is the pay that applies to employees employed by the client, working in an equal or equivalent position to the temporary worker.
In addition, there is the Private Supplement WW and WGA (PAWW). This private scheme extends the statutory WW or wage-related WGA benefit and is regulated by collective bargaining agreement. Employees who participate in the PAWW through their employer may be entitled to it in the event of WW or WGA benefits.
Reservations
Then there are reserves that must be paid out, such as furlough and supervisory leave. Senior days may be added for older employees. Depending on the client's collective bargaining agreement, an employee may also have ADV days, which in some collective bargaining agreements, such as those in the construction industry, can amount to 20 per year. The Metaal & Techniek collective bargaining agreement, which many of our clients use, often has 13 ADV days per year. All of these days off must be factored into the agency's cost.
Work in a collective bargaining agreement with 13 ADV days (so a total of 38 days off per year); Truck mechanic (Full-time/Part-time) |. Twente Personeelsdiensten Wierden
Employees may also be entitled to short leave of absence for urgent, unexpected or personal situations. This leave can last from a few hours to a few days, and the employer continues to pay salary during the leave. Vacation pay is also an important part of the cost and must be included in advance.
Some years there are also more holidays to be paid to employees than other years, these are also included in the calculation.
Social Charge and Pension
As an employer, you pay various social charges, including premiums for the Sickness Insurance Act (ZW), Unemployment Insurance Act (WW), Disability Insurance Act (WAO), Work and Income according to Labour Capacity Act (WIA), and childcare contributions. It also includes health insurance (Zvw) and pension (STIPP Plus pension).
For example, another premium is the Occupational Disability Fund (Aof) premium, which is made up of two rates depending on the size of the employer. For the Sickness Benefits Act, there is a differentiated premium Werkhervattingskas (Whk), which depends on the risk.
CBA Obligations
An important part of a temporary employment agency's cost is its collective bargaining obligations. These obligations ensure that we can offer our employees fair working conditions and meet legal requirements. Here are some of the most important collective bargaining obligations that affect the cost price:
- Sustainable Employability: Many collective bargaining agreements include a percentage to be set aside for the sustainable employability of employees. This budget is used for training and development so that employees can improve their skills and increase their employability. This not only promotes the employee's career development, but also ensures that companies have well-trained and motivated employees.
- Social Fund: Most collective bargaining agreements require contributions to a social fund. This fund supports various initiatives aimed at employee welfare, such as career guidance, working conditions and reintegration projects. These contributions are mandatory and are used to provide collective benefits to all employees covered by the particular collective bargaining agreement.
- Pension plan: Participating in a pension plan is often an obligation under the collective bargaining agreement. The cost of this plan, including employer contributions, is significant and must be included in the costing. A good pension plan is essential for the long-term financial security of employees.
- Senior Days: Additional days off (senior days) may be required for older workers. These extra days off are designed to ease the workload for older workers and promote their health and employability.
Administrative Reservations
In addition, there are administrative reserves such as a percentage for disability, vacancy risk and transition compensation. These reservations are necessary to ensure that we are prepared for any risks and liabilities that may arise during the employment contract.
Phase
For each Phase A, B or C, different obligations and cost prices hang on the agency. These are also included in the calculation. In Phase A, for example, workers have a temporary contract and fewer rights, while in Phase B and C the rights and costs increase because workers are then entitled to a permanent contract and more social securities, for example.
More info on phase counts, cost prices and obligations of an employment agency can be found on the website of the collective bargaining agreement to which we are affiliated; About the ABU - ABU
Conclusion
As you can see, the cost of a staffing agency is made up of many components that all contribute to the final rate. This ensures that we as a staffing agency can offer our services in a responsible manner while meeting all legal and collective bargaining obligations. Understanding these costs helps appreciate the value we provide as a staffing agency, not only for employees, but also for clients.
At Twente Personeelsdiensten , we continue to do our best to maintain competitive prices and be transparent about our cost structure. This way, both our clients and employees are not confronted with surprises. In addition, clients really know that they have a reliable and socially responsible partner in Twente Personeelsdiensten .
