How do I see how many of a staffing agency’s placements turn into permanent hires?

Start by asking how the agency tracks this. Some record every temp-to-perm move and others only learn of it when a client mentions it. Request a list of placements with start date, end date, outcome and any conversion fee billed. Check a few against invoices.

Then read the client agreements for the conversion terms. They may describe a fee, a period of continued billing or a buyout. Ask how often clients follow them, and how often the agency has had to chase a fee. Ask whether any clients hired workers directly without telling the agency, and what was done about it.

Finally, think about what the pattern means. Some agencies want conversions because they bring larger fees, while others rely on steady temp billings, and the best model differs by business. Ask the seller what they prefer and why. Have your accountant review how conversion income appears in the books, and your lawyer review the wording of the terms. Ask what the agency tells temps about the chance of a permanent offer, because mixed messages can harm both reputation and retention.

Key takeaways

• Ask for placement records with outcomes, and check a few against invoices.
• Read the conversion terms in client agreements and ask how often they are followed.
• Find out whether direct hires by clients ever went unreported.
• Ask what temps are told about the chance of a permanent offer.