The Pros and Cons of Hiring Temporary Employees

by Patricia Schaefer

Temporary workers play an important role in many companies. Are they right for your small business? Check out these pros and cons of hiring a temp.

temporary workers
Image source: Photospin.com

Depending on the season of the year and whose statistics you look, there are about 2 million individuals who work at temporary jobs each day in the United States. 

The use of temporary help has enjoyed an upward growth ever since entrepreneur William Russell Kelly opened the first temporary staffing agency in 1946. Today Kelly Services has long done away with its “Kelly Girl” clerical temp image. Like most present-day agencies, its positions are no longer limited to secretaries and file clerks. Temp workers currently possess a myriad of other titles including: accountants, financial officers, assembly-line workers, nurses, doctors, scientists, lawyers and information technology professionals. 

Would your business benefit from temporary help? 

To find out, check out these pros and cons of hiring a temp.  You may just find that this hiring arrangement is something that is well-suited for your business right now or something that you’ll want to seriously consider in the future. 

RELATED: 7 Inexpensive Ways to Retain Employees in Your Small Business

Pros

Enables your business to adjust more easily and quickly to workload fluctuations
Temporary help agencies can quickly provide your business with qualified staff.  Some common reasons companies hire temps:

  • Employee absences:  illness, vacation, maternity or disability leave, sudden departure
  • Unexpected or temporary demands:  special projects, seasonal or peak periods, employee shortages

Maintains staffing flexibility
With the popularity and staying power of flexible work arrangements, employers need to stay current with the needs of today’s work force.  Temporary work is just one of the ways that businesses can offer flexibility and at the same time better meet their own needs.

Representative Denise Ridenour of renowned Kelly Services foresees that “the employment pool will increasingly include a mix of temporary and full-time employees.  The result is a more efficient workplace, a more flexible job market, and greater opportunities for both employers and employees.  Additionally, improving productivity enhances a company’s bottom line and employee job security.”



Can evaluate worker without commitment
Based on your evaluation or preferences, you can employ a temp for a designated short term or, if desired, offer a full-time position to a worker who suits your business.  Some businesses employ temporary workers as an excellent and cost-efficient way to recruit and test the abilities of new workers before signing them on full-time. Other companies will repeatedly use the services of a temp worker who has proven to be a company asset. Hiring a temp can also be a good way to continue getting work done while you search for the perfect candidate for a particular job. If unsatisfied with a temp’s work performance, all you need do is contact the temp agency and they will take care of the rest.

Can save time and money
The cost of hiring temp workers is often cheaper than the cost of hiring permanent employees with benefits. In the short term, it is generally more cost-efficient to hire a temp.   For jobs that are expected to last six months or longer, it may pay to hire a full-time employee.   

RELATED:  How To Find and Hire Employees (a Business Know-How® book)

When you employ an agency, it – not you – becomes the temp worker’s employer.   The agency is responsible for and bears the financial burden of recruiting, screening, testing and hiring wo

rkers; payroll expenses and paperwork; payroll and withholding taxes; unemployment and workers’ compensation insurance; and any employee benefits they may wish to provide.  Some agencies even provide training such as software application tutorials.

RELATED: What to Do When a Valuable Employee Quits

Can lead to a long-term positive relationship with staffing agency 
Temporary employees can provide specialized skills to all types of industries. Temporary help agency workers are now employed in virtually every industry. Traditionally, companies sought temporary workers for lower-skilled positions. Today temporary workers increasingly include highly skilled individuals with a wide range of educational backgrounds and work experience. These individuals can tackle critical one-time projects that are limited in time and scope. In the field of Law alone, recent years have seen a dramatic growth and acceptance of hiring lawyers on a temporary basis.

When you find a temp agency that provides timely and quality service and referrals, and is experienced and accommodating, you may want to work with them exclusively.  A good relationship with your temp staffing provider will go a long way toward meeting your company needs. 

Cons

Training Needs
Every time a temp starts a new work assignment – no matter how skilled or unskilled – a certain amount of training is required in order for them to perform their assigned tasks to suit the specific needs of that company. Of course, if the same temp is brought back again, this might not be required.

Morale Issues
Morale and employee relations problems can arise when you have temps working alongside permanent employees for months, doing the same work and putting in the same hours, but not receiving the same benefits afforded their permanent employee coworkers.

RELATED: 5 Simple Things That Will Make Your Employees Happier

Safety Issues
Certain types of jobs are inherently dangerous and require careful safety training.  Studies show that frequency and severity rates of on-the-job injuries are significantly higher with temporary workers.  No matter what a temp’s experience is, care must be taken to see that dangerous tasks are performed safely.  Never assume a temporary worker is fully prepared to work unsupervised until you have taken the time to see that they can safely perform their work tasks.  

Legal Concerns
Recent court decisions have highlighted the fact that businesses must be careful how they contract for temporary staff.  There must be no doubt about the workers’ status and about the lack of eligibility for the benefits of permanent employees.  And treat temp workers with the same respect and care you would for your permanent staff.

The question of reliability

Some surveys of employers have found an assumption that temporary workers are generally less reliable than their permanent employee counterparts. Is this myth or reality? 

Joe Broschak, Assistant Professor of Organizational Behavior at the University of Illinois at Urbana-Champaign, shared some of his findings about a particular study of temporary workers:  “On average, these temporary workers displayed better performance relative to goals compared to their full-time counterparts.”  For those temps later hired as full-time employees, Broschak reported that “they continued to become better workers after becoming permanent.”

Choosing a reputable staffing agency – and establishing a good employer/staffing agency relationship and communications – are key elements to finding reliable workers, say Ridenour and Broschak.  Furthermore, Ridenour pointed to the rise of “free agents” to 22% of the U.S. workforce, comprised in part by termporary workers, and increasingly possessing impressive credentials:  “As more and more employees choose to work as free agents, the actual professional and education qualifications of free agents help dispel the myth that temporary workers are less reliable.”

* * *

When choosing a temp agency for the first time, you will need to spend some time selecting one that meets your particular needs. Take a look in your local Yellow Pages for the names of some agencies in your area.  Check out their websites to find out how long they’ve been in business, their “mission statement” and the types of workers and services they provide.  Some agencies focus on a particular line of work; i.e., accounting/finance or healthcare.

Ridenour suggests that businesses consider asking the following questions in order to choose the right staffing company:  What type of staffing help do you need?  How was your first interaction with the companies you contacted?  Is the company a member of the American Staffing Association?  Will the company do a presentation for you and your management team?  How well run is the organization?  How does the company recruit and retain its qualified and reliable workforce?  How are potential staffing company employees screened and tested?  Does the company fully understand your needs?  And, Does the company carry workers’ compensation for its employees? 

© 2016 Attard Communications, Inc. All Rights Reserved. May not be reproduced, reprinted or redistributed without written permission from Attard Communications, Inc.

About the author:
Patricia Schaefer is a staff writer for Business Know-How. She can be reached by email at pschaefer@businessknowhow.com 

 

 
Free small business newsletter
 
Get great business ideas and advice like this sent to you in email twice a week.
 
Subscribe to the free Business Know-How newsletter. 
 
Enter your primary email address below

 

Follow Us and Share