Staffing agencies in El Paso: a small market of very large temp branches

This report is for El Paso employers choosing an agency, job seekers sizing up the local agencies, and B2B sellers who sell to staffing firms.

El Paso staffing agencies in Census data

The figures cover the El Paso, TX Metro Area (CBSA 21340), which in the Census data is El Paso County, and two industry codes: NAICS 56131 (Employment Placement Agencies and Executive Search Services) and NAICS 56132 (Temporary Help Services). Source: US Census Bureau, County Business Patterns 2023.

Both rows are from the Census metro file. The placement and search employee figure carries a moderate-noise flag (changed by 2% to 5% for confidentiality). Of the 18 offices, 12 are placement agencies and 6 are executive search.

Why 64 temp branches employ 5,690 people

Under the Census definition, the workers a temp agency supplies are its own employees, so the 5,690 in temp help are mostly temps on assignment in warehouses, factories, call centers and offices. Texas law treats the temp firm the same way for unemployment tax: a temporary help firm is the employer of the temporary employees it provides (Labor Code 201.029). The result is a market of few, large branches: 89 employees per temp location, against 23 per placement or search office.

Size

"Not published" means the Census Bureau withheld the cell for the two codes combined. For temp help it publishes everything below 500, and the one location with 500 or more is the total less those classes.

What the count doesn't show: a national firm with two El Paso branches counts twice, self-employed recruiters aren't included, employment is the week of March 12, and professional employer organizations (NAICS 561330: 7 locations, 317 employees) are counted separately. SEC EDGAR lists no publicly traded staffing firm based in El Paso.

Agency types and what they cost

Worked example: what the markup pays for

Illustrative example. The company, pay rate, markup, state unemployment and workers' compensation costs are invented; the federal tax rates are the IRS's.

Franklin Mountain Logistics (franklinmtn.example) is quoted $18.90 an hour for a warehouse temp paid $14.00: a 35% markup, or $4.90 an hour. Before deciding the agency is overcharging, it breaks the $4.90 down:

Two lessons for the buyer. First, about a third of the markup is fixed cost the agency can't cut, so a quote far below the market usually means thin insurance or no recruiting. Second, ask for the agency's markup on overtime hours: if it charges 35% on time-and-a-half pay, the dollar margin rises by half on every overtime hour.

Texas and New Mexico rules to check

• Labor halls. Texas Labor Code chapter 92 applies to firms that supply unskilled day labor from a labor hall. The hall must offer restrooms, drinking water, enough seating and access to snacks and meals (92.024). The firm can't charge workers for safety equipment or uniforms the job requires, or for cashing their pay, and can only deduct what law requires or a same-period cash advance (92.025). Skilled temp agencies and firms without a hall are exempt (92.012).
• Injury coverage is optional. Texas employers may choose whether to carry workers' compensation (406.002), so get the agency's certificate before workers start.
• PEO licensing. Professional employer organizations need a TDLR license. The state's license data lists 8 PEO licenses with an El Paso County business address, out of 502 statewide.
• The state line. Texas uses the federal $7.25 minimum wage; New Mexico's is $12.00 (US Department of Labor state table). If your site is in Santa Teresa or Sunland Park, New Mexico rules apply to the temps who work there, whichever side the agency's office is on.

How to vet an El Paso agency

1. Ask where its workers work. If it places in New Mexico too, ask how it handles New Mexico payroll and wage rules.
2. Get the certificate of workers' compensation (or a written statement that it doesn't carry it) and general liability.
3. Ask for the markup on regular and overtime hours, and the conversion schedule.
4. Visit the branch or hall if you're hiring day labor, and check the facilities chapter 92 requires.
5. Read reviews on ClearlyRated and call two clients.

Looking for work? Legitimate agencies are paid by employers, not job seekers. Workforce Solutions Borderplex, the public workforce board, posts hot jobs and runs hiring events at no charge.

Selling to El Paso staffing agencies

The whole market is a list you can work by hand: 64 temp branches, 18 of them with 100 or more employees, and 18 placement and search offices. The big temp branches buy screening, onboarding, timekeeping, safety equipment, transport and workers' compensation insurance; where crews are bilingual, they also buy training and onboarding materials in Spanish and English. Start from the ClearlyRated and ASA listings, then read job postings to see which branches hire for which industries. Bebop can build the same list from a plain-language description and explain why each agency fits.

Subject: Bilingual safety onboarding for [client] starts

Hi [first name],

[Agency] is hiring [number] warehouse associates for sites in [area] this month.

We run 45-minute safety orientations in Spanish and English, at your branch or the client's dock, with sign-in sheets your clients can audit.

Could we run one for your next start group, free, to see if it saves your team time?

[Your name]

Local sources

Next step: compare a much larger Texas market in the report on staffing agencies in San Antonio.