The trend of hiring temporary employees dates back to the post World War-II period when companies such as Manpower and Kelly Girl Service started the practice of leasing out office workers on a short-term basis. Since then, the temporary hiring industry has grown by leaps and bounds. According to an estimate temporary workers, today constitute more than 2 percent of America’s workforce. Over the years, a steep rise in the demand for temp workers has resulted in the rise of several temporary employment agencies offering talent acquisition solutions. So, why are more companies headhunting for temp employees? We attempt to unravel the mystery.
1.Cost Saving
The U.S. Bureau of Labor Statistics estimates the cost of a new (permanent) employee to be more than $57,000 including wage, benefits, and taxes. You can save on these costs by hiring temp workers, as the temporary employment agency will hire the employee under their workmen's and unemployment compensation claim and provide any other benefits such as insurance. The agency will also bear recruitment screening, testing and hiring costs.
2. Flexibility
Temp workers can fill in for permanent employees on leave. Further, if you have a short-term project and want helping hands without committing too much, look for temp employees. For seasonal businesses, hiring temp employees can help meet fluctuation in demand without incurring extra costs. If, for instance, you own an umbrella manufacturing unit, you can hire temp employees during the rainy season (when the demand is at its peak). Temp employees with a specific skill set can be helpful in executing projects with special requirements.
3. Increased Employee Morale
Hiring temp employees can have a positive impact on employee morale, especially if they are working double shifts, and on weekends due to manpower shortage. Some typical scenarios when your existing workforce has to take added responsibilities are a rise in demand during the busiest business cycles and employee turnover. Employee burnout, stress, and anxiety can be some adverse outcomes of increased workload. Hiring temp employees during such temporary phases can help improve your workforce productivity and keep your employees happy and motivated.
4. Networking Opportunities
In the corporate world, word of mouth can make or break a company. With social media becoming more popular with every passing day, individuals have an even broader stage to share their experiences working with a company. Temp workers who had a delightful experience working with your company will share positive reviews and feedback within their circle, which can help boost your brand’s value. This can also open up your company to more clients and business partners.
Temp Hiring Comes With Permanent Benefits
Hiring temp employees comes with some benefits, which is why almost all major companies today are stressing about maintaining a mix of permanent and temp workforce. Hiring temp employees also helps create an internal pool of talent that you can tap to retain employees who you think will be the perfect fit for your workplace. If you too wish to reap the benefits discussed in this post, hire a reputable staffing agency offering temp talent acquisition solutions.