Staffing Agency

Warehouse and Operations as a Career

Welcome back to Warehouse and Operations as a Career. How has your week been? Productive, Challenging, Informative, Positive, and Safe is my answer! I hope each of you feel the same way. However, I’ve read about, and spoken with a few people that, well, I’m going to say haven’t had such a positive experience this week. I’ve heard from or read about struggles with or opinions about staffing agencies from present associates, people seeking employment and an agency’s sales person on what they heard from a prospective client, and to be quite honest, I’m scratching my head a little. I came to the conclusion that maybe these individuals are looking at only the top layer of the staffing organizations out there, so today I thought we’d peel back several more layers and see what’s underneath the skin!

I’m Marty and I’ll share a bit on the Staffing Agency today, or at least a few of my own opinions as they relate to our light industrial positions and how they are used in our industry!

Whether you’re working in a warehouse, on a production line, in a manufacturing facility or in a distribution center, there’s a good chance you’ve encountered staffing agencies, either as a worker or a manager. But where did these agencies come from, and how have they evolved over the years?

Let’s start by exploring the origins of staffing agencies in the light industrial field, how they’ve grown into an integral part of the industry and discuss the pros and cons of seeking work through them. Let’s get started.

Staffing agencies, sometimes referred to as employment agencies, have been around for over a hundred years, but their real growth took off in the mid-20th century, meaning the 1940’s and 1960’s. Their primary function has always been to connect employers with temporary workers, filling immediate labor needs. In the light industrial sectors like warehousing, manufacturing, and distribution, the demand for temporary labor has long been tied to economic shifts, seasonal demands, and fluctuations in production or shipping volumes.

The earliest staffing agencies were quite different from what we know today. Many of the first agencies, which appeared in the late 1800s and early 1900s, were focused on clerical, domestic, or agricultural labor. However, with the rise of industrialization, new opportunities were created, particularly in manufacturing and warehousing, where large numbers of workers were needed for assembly lines, packaging, and shipping tasks.

Around the 1940’s, 50’s, and 60’s, the temporary staffing industry started gaining momentum. Agencies began specializing in light industrial labor, offering a flexible workforce that could be scaled up or down depending on the needs of the employer. This was especially critical for companies in industries with fluctuating demand, like retail or manufacturing, where peak seasons required a sudden influx of labor.

Fast forward to today, and staffing agencies have become a fixture in the light industrial sectors. In warehousing, manufacturing, production, and distribution, they are essential partners to employers. Staffing agencies help fill positions like forklift operators, pickers, packers, assemblers, and general laborers. From small operations to large distribution centers, companies rely on these agencies to provide a flexible and cost-effective workforce.

Today’s staffing agencies often provide much more than just temporary workers. They handle background checks, drug screenings, and onboarding processes. Many agencies even offer training to ensure their workers are prepared for the specific tasks required in various roles. They also provide workers with the chance to gain valuable experience in different industries, which can be especially helpful for someone just entering the workforce or changing careers.

In the context of light industrial work, staffing agencies are particularly valuable because they help companies navigate those unpredictable labor needs. Many warehouses or manufacturing plants experience sudden surges in production, whether due to seasonal spikes, new contracts, or urgent shipments. Instead of maintaining a large, full-time staff that may not be needed year-round, companies can rely on staffing agencies to supply labor when demand is high.

For job seekers, especially those in the light industrial sectors, I feel staffing agencies can provide several benefits to us.

Access to Immediate Employment: One of the biggest draws of staffing agencies is their ability to place people in jobs quickly. In some cases, you can be working the very next day after signing up with an agency. This is especially helpful for people who need to start earning immediately.

And many times, they offer a variety of opportunities for us. Staffing agencies often have relationships with multiple employers, which means they can offer a variety of positions. For someone who’s unsure about which sector they want to work in, whether it’s warehousing, manufacturing, or production, agencies can provide the chance to try different roles. Agency salespeople offer the try it before you buy it thought to their customers, well, I think we, as employees, can also try the company or industry before we commit to it as well!

Here’s another big Pro for working with agencies, temporary work can be an ideal solution for people who need flexibility. Whether you’re looking for part-time work, temporary assignments, or a full-time position with the possibility of being hired permanently, staffing agencies often offer a wide range of options.

Many staffing agencies provide what’s known as “temp-to-hire” opportunities. This means that if you perform well during your temporary assignment, you could be offered a permanent position. In fact, like I alluded to a minute ago, many companies use staffing agencies as a way to “try out” workers before offering them a full-time role.

I think another big advantage to working with different companies through a staffing agency can help us job seekers build a wide range of skills and contacts. This can be valuable for anyone looking to gain experience or break into a new field.

While staffing agencies offer many benefits for us, there are also some downsides to consider also. Nothing is all roses right?

Lack of Job Security, one of the most significant drawbacks is the temporary nature of the work. While some assignments may last months, others might only be for a few days or weeks. This lack of stability can make it challenging to plan for the future or feel secure in our employment. Not a bad thing if that’s what we want I guess.

While full-time employees typically will or could receive benefits like health insurance, paid time off, and retirement plans, temporary workers often do not. Some staffing agencies offer limited benefits, but they usually aren’t as comprehensive as those provided by direct employers and their cost could be supported 100% by us, the employee.

And in many cases, temporary workers are paid less than permanent employees doing the same job. However, for some of us, the opportunity to gain experience or find immediate work outweighs the lower pay. I think the lower pay is part of that “try before I buy thought process” and, as employers, its important to factor in the markup percentage they’ll be paying on top of the wages. All of which covers the loss potential, cost of peripheral expenses, admin costs, taxes and such. All that could be its own episode actually! Where was I before that rabbit hole, let’s see…Oh

And unpredictable schedules, since many light industrial roles are tied to fluctuating production and shipping schedules, temporary workers may find themselves with inconsistent hours. One week you might work full-time hours, while the next, you could only be called in for a few days. This is pretty common if your assignment is with a 3pl facility.

And there may be limited career growth for us within the assignment and while staffing agencies can provide valuable experience to and for us, there’s often little room for advancement within the agency itself. To move up in your career, you may need to seek permanent positions or specialized roles outside the temporary staffing system.

With all that being said, Staffing agencies have become an essential part of the light industrial sectors, from warehousing to manufacturing and distribution. For employers, they offer a flexible, cost-effective way to meet fluctuating labor demands. For workers, they provide quick access to employment and the opportunity to gain experience in various industries.

However, like anything else, there are pros and cons. While staffing agencies can open doors, especially for temporary or entry-level roles, as job seekers we must be aware of the challenges, such as lack of benefits and job security and what they can actually provide. It’s important to remember they are under contract with their customers. That payrates, hiring qualifications, experience requirements, are given to them by that customer. The agencies have very little flexibility in many cases.

As the industry continues to evolve, staffing agencies will undoubtedly remain a key player in connecting us workers with employers and vice versa in the fast-paced world of light industrial operations.

Thank you for joining me on Warehouse and Operations as a Career the podcast today, and I hope we have helped to better explain staffing to you. If you’ve ever worked with a staffing agency or have any stories about your experience, I’d love to hear from you. Reach out on social media using @whseops on our Facebook and X pages or our Instagram @WAOCpodcast, and let’s keep the conversation going. And we love getting email as well using [e-mail]. Until next time, stay safe, stay focused, and keep moving forward.