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The Ins and Outs of Hiring Temporary Employees

Written by Salary.com Staff

May 15, 2024

The Ins and Outs of Hiring Temporary Employees Hero

Hiring temporary employees can be tricky. But for many businesses, bringing on extra help for a short period makes good financial sense. The key is going into the process with eyes wide open to the pros and cons. Read on as this article explores the ins and outs of hiring temporary workers.

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What Are Temporary Employees?

Temporary workers, also known as temps, are short-term employees. More often, companies hire temporary workers during peak season or busy days. This helps companies meet labor demands without a permanent commitment. Companies often use agencies to hire temporary workers for vacant roles.

Temp agencies screen candidates. They find workers with the right skills, experience, and qualifications for temporary jobs. Companies can find temps with experience in administration, customer service, accounting, and more. Temp workers receive training to gain skills and on-the-job experience beneficial to both the company and the worker.

Using temporary employees allows companies flexibility in staffing. They can quickly hire extra help when workloads rise, or regular staff are absent. When the need for extra support decreases, the company can end the temporary workers' assignments easily. This flexibility helps control costs as the company only pays for temporary staff when necessary.

Hiring temporary workers requires minimal commitment from the company. They do not have to provide benefits, paid time off, or long-term job security. Temp agencies handle insurance, payroll, and admin for workers. Companies can end a temporary worker's assignment at any time without penalty. This allows maximum flexibility and control over staffing costs.

Temporary employees offer flexibility. They provide access to skilled workers without long-term commitments to companies and help meet short-term staffing needs cost-effectively.

Pros of Hiring Temporary Workers

Temporary employees provide companies with a lot of flexibility and benefits. Here are some:

Cost-Effective

Hiring temporary workers is often more budget-friendly than hiring permanent ones. Companies only pay temporary workers for their actual hours worked. This lets companies adjust quickly without long-term costs. Besides that, it allows businesses to save money as well, especially when workload is unpredictable or seasonal.

Fill Gaps Quickly

Companies cannot avoid the sudden resignation of employees. This can cause unexpected gaps that may affect some projects. Temporary workers are great for filling unexpected gaps or short-term projects. Instead of long hiring processes for permanent roles, companies can immediately hire qualified temps. They can start right away, which prevents disruptions.

Flexibility

Temporary workers provide companies with more flexibility. Businesses can easily increase or decrease the number of temps based on their needs. When workloads decrease or projects end, they can simply end the temporary assignments. Companies can adjust staffing quickly as demand changes, without permanent commitments.

Temporary workers are great for saving money, quick hiring, and flexibility. They're perfect for short-term needs, while permanent workers are best for long-term jobs. Hiring temp workers has lots of benefits, so companies must think about it.

Cons of Using Temporary Employees

Hiring temporary employees sounds easy. But hiring them can cause some challenges for the company as well. While temporary employees can fill important staffing needs, there are some downsides to be aware of.

Lack of Loyalty and Commitment

Temp workers usually do short-term jobs knowing they'll end soon. They typically lack loyalty to the company since they know they have limited time. They may not go the extra mile or care deeply about the success of projects and tasks. They may skip challenging projects since they won't be there to finish them. On the other hand, permanent employees work to help the company for a long time. They usually feel more invested in the company's future and growth.

Training Investment

It can take significant time and money to properly train temporary employees. By the time they are up to speed, their contract may be ending. The company then must start over and train another. This constant cycle of hiring and training can reduce productivity and increase costs.

Hidden Costs

At first glance, temporary employees may seem more budget-friendly since the company is not paying for benefits. But there are hidden costs due to high turnover and frequent hiring. It takes time and resources to find, interview, and train new temps regularly. And when they make mistakes, it can cost the company money. Hiring temporary workers is suitable for short-term projects or sudden gaps. But hiring more temporary workers than permanent ones can cost more.

Temporary workers are useful, but companies need to be realistic. They offer flexibility and special skills but may not be as loyal or committed as permanent ones. Knowing this, businesses can hire temps well while remaining reliant on permanent workers for most jobs.

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Finding and Selecting the Right Temporary Staff

Temporary workers fill temporary roles. But that doesn’t mean just hiring anyone for the job. Hiring temporary employees requires careful consideration. Managers need to find those with the right skills and qualifications. Here are a few tips to get the right people:

Clearly Define Your Needs

Determine why you need temporary help and how long you'll need them. Job descriptions are crucial. Before you hire, be clear on what skills, experience, and availability you need for the temporary role. Clearly state the job needs, duties, pay, and how long the temp job will last. It is important to cast a wide net as well to reach qualified applicants. Post listings on general job sites like Indeed, Monster, and Craigslist, as well as industry-specific sites. Clearly defining the scope and duration of the work will help find good candidates.

Check References and Qualifications

The work may be temporary, but it remains crucial to check candidates’ references and qualifications. Do this before inviting top candidates for interviews. Make sure they have the necessary skills, experience, and work ethic to get the job done. Call past employers to verify employment dates and job responsibilities. Check that any required licenses or certifications are up to date. Don’t assume temporary means you can lower the standards.

Selecting Applicants

Take time to review resumes before deciding who to interview. During interviews, ask about relevant experience, skills, work ethic, and motivation for temporary work. Seek flexible candidates who adapt well and perform strongly in temp roles. Compare candidates to job requirements. Prefer overqualified to underqualified for temporary roles. Select those with relevant experience, quick learning, and transferable skills.

Consider Flexibility

Temporary workers often appreciate flexibility, both in their contract terms and work arrangements. Companies can offer flexible hours or other non-monetary benefits suitable for temp workers. This can attract more skilled and suitable workers. A competitive salary can help to secure a candidate for the temporary role.

Communicate Expectations Clearly

Once you've selected temporary employees, clearly communicate your expectations. Make sure they understand their job duties, deadlines, and performance standards. Clear guidance from the start sets up temporary work for success.

Companies can find top temporary employees for short-term needs with a thorough selection process.

Rules to Handling Temporary Employees

There are a few important rules to keep in mind after hiring temporary employees. After a thorough screening, managing them well is also a must.

Clear Contract

Just like job descriptions, employee contracts are critical. Contracts for temporary and permanent employees are different. But both contracts must be clear. Employers need to clearly define compensation and the length of employment of temp workers. And since this is a temporary role, job requirements are slightly different. A clear contract sets the expectations of both the temp workers and the employer, which helps avoid confusion regarding company benefits set for permanent employees.

Pay Competitively

Offer competitive pay for the position. While the work may be temporary, good candidates have options. Paying below industry standards will make finding and keeping good temporary workers difficult. Providing full employee benefits to temp workers is not required. But companies can provide benefits like paid time off or bonuses when possible. Competitive pay and good benefits will motivate temporary workers and yield better results.

Provide Adequate Training

Since this is a temporary role, some companies overlook training. This can cause problems in the long run. Temps may only be in the role for a short period but still require proper onboarding and training. Take the time to thoroughly explain the job expectations, company policies, and safety procedures. Monitor new temps closely to ensure they understand their tasks and responsibilities. Close monitoring and feedback will help ensure strong performance and outcomes. Though only temporary, they are representatives of the company. Proper training will set them up for success in the role.

Set Clear Rules and Boundaries

Some company rules don’t apply to temporary workers. And some rules are only for temporary workers. Define work hours, schedules, dress code, and policies upfront. Explain things like internet, phone, and technology use guidelines. Be very clear in communicating what is and isn't appropriate. Provide constant supervision and feedback, especially for the first few weeks. Temporary workers must be held to the same standards as permanent staff regardless.

By following these rules, you'll find the best temporary workers. More than that, this will also help get them ready for the job and encourage them to do good work during their short time with the company. Though temporary, investing in the hiring and onboarding process is worth the effort.

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Conclusion

Temporary workers are a big help to most companies. Hiring temporary workers helps companies meet short-term needs without the long-term expenses of full-time staff. They provide flexibility during busy times and may become great permanent hires as well. Just find qualified candidates, set clear expectations, train them well, and follow labor laws.  Remember, treat them well, pay them right, and make them feel like they belong, and you will get the best out of your temporary employees.

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