Is Hiring Temporary Employees a Good Idea?

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Since the first temporary hiring service opened in 1945, companies have used temporary workers to meet staffing needs. Temp agencies have expanded beyond secretaries and filing clerks to now include almost every kind of job imaginable. From coders to warehouse workers and medical professionals, the temporary workforce has grown to millions. With increasing costs, government-mandated health care, benefits, and searching for qualified people, it can be hard to know if you should hire temporary help. So, is hiring temporary employees a good idea? We will cover the pros and cons of temporary workers here.

Pros

Increased Flexibility

In industries such as warehousing, retail, and logistics, there are peaks and valleys in their business. There are times when they need lots of hands and others when they don’t. Having temporary help keeps your operation flexible. During your peak season, you can increase your staff to meet the increased demands. When you then enter a slow period, you can eliminate non-essential employees.

Evaluation of Talent

A temporary assignment can act as an extended job interview. Bring in some temporary workers and evaluate them and their job performance. You will get a good idea if they are the right fit for the position without having to hire them. If they are a good fit, then you can offer them a full-time position. If not, then move on to the next candidate.

Save Time and Money

When you bring on a temporary employee, you are not their employer—the temp agency is. The temp agency will set the wage and you’ll negotiate a price with them. Within this arrangement, temporary workers often get a lower wage. This is due in large part to more lacks skill requirements. Plus, the company saves money on administrative costs, wages, and insurance coverage.

Cons

Constantly Training New Employees

Using temporary workers and having a revolving door of people coming in and out means that you have to train them—constantly. Every time a new face comes in, the company must ensure that a new employee learns all the necessary skills for the job; this is essential to avoid injury and error. For example, learning to drive a forklift is one skill that, without the proper training, can result in several mistakes. And fixing these mistakes will take time. As such, having new people all the time will slow down the operation until you get them up to speed.

Low Morale Among Workers

Morale among workers can suffer when temporary workers and full-time company employees are working together. Day after day, the workers do the same job and work the same hours, but one typically does it for less money and no benefits. Everyone is aware of the arrangement even though they may not openly speak about it. Permanent employees may look down on the temps and avoid speaking to them or engaging in any way. Temp workers will work hard in the hopes the company offers them a full-time position; however, if this doesn’t occur after many months, their production may slip or they’ll move on. Then you are back to square one.

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