Why would a company hire a temporary worker rather than a permanent one

Why would a company hire a temporary worker rather than permanent one.

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.

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.

The Pros and Cons of Hiring Temporary Employees

Pros

Enables 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.   

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.

References

Aiken, L. S., & West, S. G.(1991). Multiple regression: Testing and interpreting interactions. Newbury Park, CA: Sage

Davis-Blake, A., & Uzzi,B. (1993). Determinants of employment externalisation: A study of temporary workers and independent contractors. Administrative Science Quarterly, 38 , 195

Davis-Blake, A., & Uzzi, B. (1993). Determinants of employment externalisation: A study of temporary workers

Hackman, J. R., & Oldham, G. R. (1975). Development of a job diagnostic survey. Journal of Applied Psychology,60 , 159/170