The Pros and Cons of Temporary Staffing

Traditionally, using temporary staffing has been associated with larger businesses who may have large workforce fluctuations or may need specialized recruiting. However, even small businesses can benefit in the right situations and may actually save money in the long run.

Whether you’re stocking up on staff for a special project or looking to hire the right talent without gambling on a bad hire, temporary staffing and temporary to hire may be a way to quickly get exactly who you need, when you need them, without the time and expense of traditional hiring practices.

Here are some pros and cons of using temporary staffing:

It provides flexibility in an increasing economy
Small businesses must adapt quickly to changing work fluctuations, but after the recent economic crisis, there is still a reluctance to commit to full-time staff. To meet the demands of growth as it ebbs and flows requires people, and bringing workers on without a long term commitment can be very flexible and cost effective.

Find the best people for long term placements
Finding employees that are the right fit for your workplace is always a challenge, making a bad hire can be costly. Through temporary staffing, or temp to hire, allows businesses to evaluate employees over days, weeks and even months. This “try it before you buy it” practice can be a very effective way to put right people in place.

It can save you money
In the short term, the cost of hiring a temporary employee is usually far more cost effective than committing to a permanent employee because the temporary staffing company carries the burden of payroll, sick pay, vacation pay and health benefits. However, the cost may be higher for longer term assignments than hiring a traditional employee, so always get the best advice on what’s right for any particular situation.

It can reduce your unemployment liability
Since the temporary staffing company is the employer of record, when an assignment ends, or if the employee doesn’t work out, you will not face unemployment claims. When a change in an employee’s assignment is required, you can simply let your representative know, and that employee will become the responsibility of the staffing company.

Some things to consider:

• What are the training requirements for the position you are hiring? Significant training requirements may make short term assignments more difficult and costly.
• Will your current staff work well with the new “temps”? Make sure you prepare them for the new hire and that they understand the long-term strategy.
• Are you aware of “joint liability”? In California, temporary staffing companies and their clients are held jointly liable for temporary workers. You will still need to ensure compliance with wage and hour law, and basic HR issues, the staffing company will help with this.

Temporary staffing may or may not be right for your business, but as the economy grows, every business will need good people. Growing businesses should consider temporary staffing but if you’re not sure, contact the experts at Infinium HR and we help you decide if its right for your business.