LUTZ BUSINESS INSIGHTS
do i need a temporary hire or full-time employee?
jason orme, client relations manager
What Is a Temporary Hire?
A temporary hire or temp worker is hired on a temporary basis to help meet a need or handle pressing work that cannot be managed by the current staff. These workers are meant to help pick up the slack left behind by the permanent workforce when business picks up or when the amount of work available becomes too large to manage. For example, it is common to see temporary workers brought in to work retail jobs during the holiday season when traffic flow is much higher than during other times of the year.
Benefits of a Temporary Hire
It is pretty easy to see the benefits of hiring a temporary worker, which includes:
1. Flexibility With Scheduling
There is greater flexibility with scheduling a temporary hire as they are not on the same structured hours required by a full-time employee. They are there to fill your needs when you need them, whether for a month, a quarter, at 20 hours a week, etc.
2. Reduced Starting Salary
Many temporary hires are brought in at a lower cost per hour compared to the full-time hires as part of the agreement allowing them to work for you.
3. No Guarantee Of Benefits
Temporary workers do not necessarily need to have benefits offered to them as part of their employment agreement. This can add savings to the bottom line.
While these benefits can help strengthen your company’s productivity and financial position, there are situations when hiring a temporary worker is not necessarily the best option.
Limitations of a Temporary Hire
There are always downsides to any potential business decision. The choice to hire temporary workers instead of full-time employees comes with its own set of risks as well.
1. Temporary Employees Report Feeling Isolated
Some temporary workers say that they feel isolated in their work and not respected by their co-workers. Failure to provide a welcoming and accepting culture could limit the value obtained from hiring temporary workers.
2. Temporary Workers Feel Emboldened to Leave More Easily
Temporary workers have fewer tie-ins to their employer and may find it easier to quit their job than someone hired full-time. Because they may not have company-provided healthcare or other benefits, it is fair to see why temps might be more apt to leave.
3. They Are Not as Trained as Full-Time Employees
Temporary workers may come into the job without the training and experience that the full-time workforce already has. It is likely to take some time to get these workers caught up to speed.
Each situation needs to be reviewed carefully before deciding which kind of worker is most ideal for your specific employment needs.
Does a Direct Hire Make More Sense?
Opting to make a direct hire can make a lot of sense depending on the company’s needs. With a direct hire, companies can promote their own perks and benefits packages. Temporary or temp-to-hire employees, on the other hand, receive monetary and insurance benefits from the staffing agency.
Perks and benefits are likely to help you attract the best and most loyal candidates to your job. That said, keep in mind that you will have less flexibility with a direct hire’s salary. They are likely to be more expensive than a temp candidate. If you have the budget to make a direct hire, then chances are it is the right choice for you, but make sure you give proper consideration to both options.
Converting A Temporary Employee to Full-Time Hire
The temp-to-hire model is something that has really caught on in recent years throughout the corporate world. What hiring managers are noticing is that the best candidates for their open positions are the people who have been working alongside them this entire time.
Instead of starting with an outside hire, many firms are now choosing to bring some of their temporary staff over to a full-time role. Each company has different time frames in terms of how long an individual remains in a temporary role before they are considered for a permanent position. Still, generally, this period is enough time for the company to review the candidate’s qualifications and make sure they are a good fit with the culture and team.
This method is often less expensive than hiring another individual as much of the training for the role is already completed during the temporary hire period. Thus, it makes fiscal sense to select this option in many cases.
Employment Market Outlook
It is impossible to say what the employment market will look like going forward, but we do know that there is a massive demand for labor at the moment. In fact, the number of available job openings currently outpaces the number of people looking for work. This has put added pressure on hiring managers to get the job done right. They have to be more flexible both with their expectations and demands from potential hires. A lot of the power has shifted over into the hands of workers for the first time in a long time, and many workers know it. Given this, now may be the best time to look at temporary hire options, but always keep the door open to bringing temporary workers over into full-time status.
Whether you are looking to hire temporary staff or a full-time employee, Lutz Talent can help you find the best candidates. If you have any questions, please feel free to contact us. You can also learn more by reading related articles on our blog or even check out our current opportunities to see what jobs we have available.
ABOUT THE AUTHOR
JASON ORME + CLIENT RELATIONS MANAGER
Jason Orme is a Client Relations Manager at Lutz Talent with over seven years of experience. He is responsible for helping business leaders find the best long-term talent to reach their business goals.
AREAS OF FOCUS
- Accounting and Finance Industry
AFFILIATIONS AND CREDENTIALS
- Institute for Internal Auditors - Aksarben Chapter, Member
- Association for Corporate Growth - Nebraska Chapter, Member
- BSBA, Public & Private Accounting, Northwest Missouri State University, Maryville, MO
- BSBA, Corporate Finance, Northwest Missouri State University, Maryville, MO
- MBA, Northwest Missouri State University, Maryville, MO
- Omaha Ducks Unlimited Chapter, Chairman
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