Most companies don’t realize that the cost of hiring temporary employees, typically referred to as ‘temps,’ is often cheaper than hiring permanent employees.
Temporary agencies take on the work and bear the expenses of advertising, interviewing, qualifying, assessing skills, reference checking the individuals. Once the agency finds the ‘right fit’ among the talent pool, the agency becomes the temporary worker’s employer. As the employer, they then absorb the financial and administrative responsibility of processing payroll and paperwork, collecting tax forms, paying tax liabilities, workers compensation and other insurances. They also offer certain additional benefits depending on the agency and the assignment.
Temporary workers have become an integral part to today’s workforce. They help organizations leverage resources during times of growth, special projects, fill in for employee leaves. Temps can be hired to perform operational functions in all areas of the organization including but not limited to accounting, finance, general administration, human resources, legal, marketing, warehouse.
Mona Bijoor, founder and chief executive of Joor, a New York-based company that connects retailers and brands. As Sarah Max reports for The New York Times, Bijoor’s company launched a contract work program last year. The company hired seven people to work in data operations. Each received two days of training and then had a 30-day trial period, at the end of which three of the seven were hired as full-time employees. This structure helped Joor quickly staff a number of positions when they needed immediate resources. It gave them the opportunity to train, evaluate and make the best hire.
David Rusenko, chief executive and co-founder of Weebly, a company that hosts websites, also believes that the structure of temporary arrangements has significant value for employers in the recruiting process. Some employers are wary of extending a permanent offer after only conducting an interview. Through conducting a trial period, employers see first-hand how the employees work and fit into the company culture. In addition, if it turns out to not be a good match, temporary arrangements are easier to end than letting go of a permanent employee.
Matt Mullenweg, founder and chief executive of Automattic, which created WordPress, suggests that positions in support and design, along with developers, lend themselves best to a temp-to-perm approach. So, as you can see, today’s temporary workforce has a myriad of skills. Long gone are the days where temporary employees were strictly thought of as “secretaries” – a term reflective of the times. A staffing agency can help you implement a strategy that works for the needs of your organization.
The best approach in finding the right vendor is to interview various agencies and partner with one that best understands your goals and needs.
Lynette Vallecillo is the founder of Hire Initiatives (WBE/MBE/DBE) with a successful and noted 20-year career in human resources specializing in staffing management. Known for her tenacity, passion, and effectiveness, Lynette builds and manages long-term client relationships that repeatedly develop into strategic partnerships.