Reality Check: Why Temp Agencies Exist (And Why They Hire Felons)
Temp agencies exist to solve a problem for companies: they need workers fast without commitment. A warehouse needs 50 extra bodies for holiday season. A manufacturer needs to cover a production surge. A logistics company needs to test workers before hiring them permanently.
This guide is written for people who need income quickly, are willing to work, and want to avoid getting stuck in low-wage churn.
Temp agencies fill this gap. They maintain a pool of available workers, handle payroll and insurance, and absorb the risk if someone doesn’t work out. The client company gets labor without the commitment.
Why temp agencies hire people with records:
They shift risk to numbers. Temp agencies know 30–40% of workers will quit or get terminated within the first month. They don’t need perfect candidates — they need volume. If you show up and perform basic tasks, you’re already in the top 50%.
They get paid per placement. More workers placed = more money. They can’t afford to reject everyone with a record. Their business model depends on constant worker flow.
For people in reentry, this creates opportunity: Temp agencies are often the fastest path to a paycheck. You can apply Monday and start working Wednesday. Background checks are often minimal. Drug tests are standard but quick.
The trap: temp work can become a cycle. You work a week, get laid off, find another temp job, repeat. You never build stable employment history. You never get benefits. You never access training or promotions.
This guide exists to help you use temp agencies strategically — as a 60–90 day bridge to permanent work, not as a lifestyle.
How Temp Agency Hiring Actually Works in 2026
Two-stage background checks: The temp agency runs one background check. The client company (where you actually work) may run another. Sometimes the agency check is minimal but the client check is thorough. Other times it’s reversed.
Always ask: “Does the client company run their own background check? What’s their policy on felonies?” Don’t assume passing the agency screening means you’re cleared for the assignment.
Insurance and risk shifting: Temp agencies carry workers’ compensation insurance and liability coverage for all their temps. This allows client companies to hire risky workers without increasing their own insurance costs. If something goes wrong, the agency absorbs the liability.
This works in your favor: Companies will hire you as a temp who wouldn’t hire you as a permanent employee because the temp agency takes the insurance risk.
Turnover economics: Temp agencies expect massive churn. Their business model accounts for 40–60% of workers quitting or being terminated within 30 days. They hire aggressively because they know most people won’t last.
What this means for you: Your record matters less than your reliability. If you show up on time and complete basic tasks for 30 days, you’re immediately more valuable than half the workforce.
Pay structure (critical):
- Agency pays you $15–$18/hr
- Client pays agency $22–$30/hr
- Agency keeps the difference (markup)
You’re making less than permanent employees doing the same job. This is the cost of fast access. Use it short-term, not long-term.
The Temp-to-Perm Strategy (60–90 Day Rule)
Most companies use temp agencies as extended interviews. They hire temps, observe performance for 60–90 days, then convert good workers to permanent employees.
How to use this:
Week 1–2: Show up on time every day. Do exactly what you’re told. Don’t call out. Learn names of supervisors.
Week 3–4: Volunteer for extra shifts or overtime. Show initiative (but don’t try to redesign processes — just work hard).
Day 30: Ask your temp agency rep: “What’s the conversion rate at this site? When do people typically go permanent?”
Day 60: Ask your on-site supervisor (not the agency): “I’m interested in becoming a permanent employee here. What’s the process?”
Day 90: If there’s no conversion path or timeline, start applying to direct-hire jobs using your temp experience on your resume.
Some companies legally limit temp conversions to avoid benefit obligations. If conversion is blocked by policy, performance alone won’t change that.
Hard rule: Never stay temp for more than 90 days at one site without a clear conversion plan. If they haven’t converted you by 90 days, they’re unlikely to ever do it. You’re being used as disposable labor.
Red Flags (Leave Immediately)
- “We don’t convert temps to permanent”
- “Maybe in 6 months” (repeated multiple times)
- Temps have been there 1–2 years with no conversion
- High turnover of temps every few weeks
If you see these signs, you’re in a churn situation. Use the experience to apply elsewhere.
Good Temp Jobs vs Bad Temp Jobs
Not all temp assignments are equal. Some lead to permanent work and skill development. Others are survival-only dead ends.
Good Temp Assignments (Use These)
Warehouse and logistics: Order picking, dock loading, forklift operation. These roles often convert to permanent ($16–$22/hr permanent vs $15–$18/hr temp). High conversion rates because turnover is costly for warehouses.
Manufacturing (light assembly): Repetitive production work. Conversion rates vary but often lead to union manufacturing jobs with benefits.
Forklift operator temp roles: Once you’re certified (often agency-provided), you become more valuable. Companies want to retain certified operators. Conversion rate is higher.
Yard jockey / logistics support: Moving trailers, loading coordination. These roles expose you to transportation/logistics careers. Companies invest in converting reliable workers.
Why these are good: Clear skill development. Measurable performance. Companies need consistent workers. Conversion paths exist.
Bad Temp Assignments (Avoid or Escape Fast)
Day labor / general labor churn: You show up at 6am, get assigned to a random job site, work 8 hours, come back tomorrow for a different site. No skill development. No conversion path. Pure survival mode.
Event staffing: Concerts, festivals, one-time events. Fun but no progression. You’re disposable by design.
Seasonal retail (temp-only): Hired for Black Friday through Christmas, terminated in January. No permanent conversion, just churn.
Call centers (churn factories): High-volume, high-turnover, metrics-obsessed. Conversion rates are low because companies prefer constant temp refresh to avoid paying benefits.
Pattern to avoid: If the temp assignment is explicitly temporary (seasonal, event-based, project-specific), there’s no conversion path. Use only if desperate, exit immediately when better options appear.
The Daily Pay Trap (PeopleReady / Labor Ready Warning)
Daily pay staffing agencies (PeopleReady, Labor Ready, Labormax) let you get paid at the end of each shift via debit card or check. This sounds great when you’re broke. It’s a trap for most people.
How it works:
- You show up at 5am or 6am
- They assign you to a random job site (construction cleanup, warehouse overflow, moving jobs)
- You work 8–10 hours
- You get paid $100–$140 that day
- Repeat tomorrow
Why it’s a trap:
No consistent employer: You work at different sites constantly. You never build employment history with one company. No references. No promotion path.
No skill development: You’re doing unskilled general labor. No forklift training. No equipment operation. No advancement.
Lower pay: Daily pay jobs typically pay $12–$16/hr vs $16–$22/hr for stable temp assignments.
Fee extraction: Daily pay services charge fees (debit card fees, cash-out fees) that eat 3–10% of your earnings.
Exhaustion cycle: You work hard physical labor every day with no days off because you need daily income. You burn out fast. Injuries increase.
Who daily pay works for: People in absolute crisis who need $100 TODAY to avoid eviction or buy food. It’s survival-only, not progress.
Daily pay agencies are optimized for employer convenience, not worker progress.
Hard rule: If you use daily pay agencies, set a 2-week limit. Use the first paycheck to stabilize, then immediately apply to standard temp agencies or direct-hire warehouse jobs. Do not let daily pay become a lifestyle.
Drug Testing, Attendance, and AI Monitoring (2026 Reality)
Drug testing is universal: Expect pre-assignment urine tests (5-panel or 10-panel). Marijuana is still disqualifying even in legal states for most industrial temp work. Some agencies do random testing for ongoing assignments.
Failing a drug test blacklists you at that agency. You won’t just lose one assignment — you’ll be marked as ineligible for all future assignments with that agency. Some agencies share data. Be clean before you apply.
Attendance is tracked digitally: In 2026, most temp agencies use apps (TempWorks, Bullhorn, WorkMarket) that track:
- Clock-in/clock-out times
- No-shows and late arrivals
- Performance ratings from client supervisors
Your attendance record follows you within the agency system. Three no-shows often = permanent blacklist.
AI monitoring at worksites: Many temp assignments now involve AI-monitored environments:
- Warehouse cameras tracking productivity
- Safety violation detection systems
- Digital task management (tablets, scanners)
What this means: Your performance is measurable and documented. This is protective — if you show up and hit basic metrics, the data proves your reliability. But it’s also unforgiving — rule-breaking gets caught fast.
For people on probation/parole: AI monitoring helps you prove compliance. Request performance reports from your temp agency to show parole officers documented employment and good behavior.
How to Use Temp Work to Upgrade Skills
Temp agencies are platforms for accessing training and certifications that increase your income.
Forklift Certification
Many warehouse temp assignments will certify you for free if you show reliability for 30–60 days.
Strategy:
- Get hired for general warehouse temp work ($15–$17/hr)
- Work consistently for 30 days
- Ask your agency rep: “Are there forklift positions available? Will the client or agency provide certification?”
- Get certified (usually free if agency/client provides it)
- Move into forklift temp roles ($18–$24/hr)
- Leverage certification to apply for permanent forklift jobs elsewhere
See our Forklift Certification Guide for full details on getting certified and using it strategically.
Yard Jockey / Logistics Exposure
Some temp assignments place you in logistics support roles — coordinating trailers, working with yard jockeys, assisting with dispatch.
Why this matters: Exposure to logistics operations helps you transition into yard jockey roles (non-CDL, $20–$26/hr) or CDL-sponsored training programs.
Strategy: If assigned to a logistics/transportation site, ask supervisors about yard jockey or driver training programs. Many companies promote from within.
See our Yard Jockey Guide for paths from temp work into transportation.
Trades Entry Points
Some temp agencies place workers in construction support or trades helper roles. This is your entry point into apprenticeships.
What to watch for:
- Electrical, plumbing, or HVAC companies using temp labor for material handling or site cleanup
- Skilled trade contractors hiring temp helpers for short projects
Strategy: Prove reliability, express interest in learning the trade, ask about apprenticeship opportunities. Some companies hire their best temps as apprentices.
See our Trades Pillar for full guidance on entering skilled trades.
When to Leave a Temp Agency (Clear Exit Signals)
Exit immediately if:
No conversion path by day 90: If you’ve been at the same assignment for 90 days with no permanent offer or timeline, leave. Apply to direct-hire jobs using your temp experience.
Repeated short assignments (1–2 weeks each): If you’re constantly rotating between different sites every 1–2 weeks, you’re in a churn cycle. Find a stable assignment or leave the agency.
Safety violations or exploitation: If you’re asked to work without PPE, in unsafe conditions, or perform tasks you weren’t trained for, refuse and report to the agency. If the agency doesn’t act, leave.
Pay below $15/hr with no upward path: If you’re making $12–$14/hr with no raises or promotions after 60 days, you’re being exploited. Warehouse direct-hire starts at $16–$18/hr. Leave.
Constant schedule changes with no notice: If the agency or client changes your schedule daily with no notice, making probation/parole reporting or childcare impossible, this isn’t sustainable. Find more stable work.
Positive Exit Strategy
Once you’ve worked 60–90 days at a temp assignment:
- Update your resume with the temp experience (list the CLIENT company name, not the temp agency)
- Get a reference from your on-site supervisor (not the agency)
- Apply to direct-hire jobs at similar companies using your proven experience
- Leverage forklift certification, equipment training, or logistics exposure into better roles
You’re not quitting — you’re graduating. Temp work served its purpose (fast income, work history, skill development). Now use it as leverage for permanent employment.
Who Temp Work Is Best / Worst For
Good fit if:
- You need income within 48 hours
- You have gaps in employment history and need to rebuild work records
- You’re in early reentry and need to prove stability for probation/parole
- You want to test different industries before committing
- You’re using it strategically as a 60–90 day bridge to permanent work
Bad fit if:
- You have a stable job already (don’t quit for temp work)
- You need benefits immediately (health insurance, paid time off)
- You can’t handle uncertainty (assignment changes, schedule variability)
- You’re prone to job-hopping and temp work will reinforce bad patterns
- You need predictable income for budgeting (temp hours can vary week-to-week)
Bottom Line + Next Steps
Temp agencies are tools. Use them to get income fast, build work history, and access training — then exit into permanent jobs.
Never stay temp longer than 90 days at one assignment without a conversion plan. If they won’t convert you, they’re using you as disposable labor.
Daily pay jobs are survival-only. Use them for 1–2 weeks maximum to stabilize, then move to standard temp agencies or direct-hire work.
Always ask about background policies per assignment. Passing the agency check doesn’t guarantee client acceptance.
Do not quit a current job until you have a confirmed start date. Temp work can fall through. Protect your existing income.
Action Checklist
☐ Apply to 3–5 standard temp agencies (Randstad, Adecco, Spherion, Manpower, Robert Half for warehouse/industrial)
☐ Avoid daily pay agencies unless in absolute crisis (use 2-week max limit)
☐ Ask upfront: “What’s the conversion rate at your best client sites? How long does it take?”
☐ Target warehouse, manufacturing, or logistics assignments (higher conversion rates than retail or events)
☐ Request forklift or equipment training after 30–60 days of reliable performance
☐ At day 60, ask on-site supervisors about permanent opportunities
☐ Exit by day 90 if no conversion path exists — use experience to apply for direct-hire jobs
☐ If placed in warehouse work, immediately read our Warehouse & Logistics Guide to plan your exit before week 3.
Temp work buys you time and builds credibility. Use it strategically, not as a permanent solution.
Related: See our Warehouse & Logistics Guide for permanent warehouse paths, Forklift Certification for skill upgrades, or Yard Jockey Jobs for transportation entry points.