As many as two million individuals look for temporary employment each day. Consider the benefits and risks of hiring temporary employees as you decide if this option is right for your company.
Benefits of Hiring Temporary Employees
Save Money
In general, temporary employees are cheaper to employ than permanent ones. You typically avoid some hiring costs and are not required to provide the same benefit packages, which can reduce short-term payroll expenses.
Quickly Fill Open Positions
Vacations, maternity or disability leaves, sudden staff departures, or busy seasons can strain your workforce and affect quality or safety. Temporary employees can help handle the workload and keep operations running while you look for permanent staff.
Part Ways Easily
Terminating a permanent employee often requires following formal procedures and legal considerations. Releasing a temporary employee is generally simpler, allowing you to continue searching for the right long-term candidate without prolonged administrative steps.
Fill Permanent Positions
Temporary employees can be excellent candidates for permanent roles. They are already familiar with the job, coworkers, and procedures, which can shorten the adjustment period if you choose to hire them full time.
Risks of Hiring Temporary Employees
Training Takes Time
Unless a temporary employee has worked for you before, they will need onboarding on company procedures and the specific job. Training takes time and may pull supervisors or key staff away from other duties, which can affect project timelines.
Safety Concerns
Safety incidents can increase when new or short-term workers are on a site. A temporary employee might make a mistake that jeopardizes others, so supervisors should monitor new workers closely until they demonstrate safe performance.
Decreased Morale
Temporary workers often do not receive the same benefits as permanent staff. If temps work slowly or make mistakes, production and morale can suffer among permanent employees who must cover or correct work.
Legal Recourse
A worker's status and eligibility for benefits must be monitored carefully, and temporary staff should be treated respectfully and consistently to avoid disputes. Employers may also want to review insurance options for staffing operations, such as Temporary Services Program Insurance, to understand potential protections.
Temporary employees can benefit your company, but they also carry risks. Be informed with the facts about temporary employees as you make the right choice for your company. Employers should also consider specialty coverages that may apply to temporary staffing, for example Temporary Help Agencies Insurance and specific liability concerns such as Hired and Non-Owned Auto (HNOA) Insurance for Temporary Staffing Agencies.
Frequently Asked Questions
How quickly can temporary employees be hired?
Temporary employees can often be placed within days to weeks, depending on the role and the staffing provider's pool of candidates.
Do temporary employees need the same training as permanent staff?
Yes, temporary workers typically require job-specific and safety training before they can perform tasks independently.
Can a temporary employee become permanent?
Yes; many companies convert temporary workers to permanent employees after a trial period if the fit and performance are good.
What risks should employers insure against when using temporary staff?
Employers should consider general liability, workers' compensation, and staffing-specific coverages that address liability and auto exposure for temporary placements.