Every coin has two sides. There are always two shades of the same color. Similarly, even the 'Staffing Industry' has its pros and cons. For the last few years, temporary workers have been getting hired by organizations as they strengthen the services that they provide.
There's a lot of advantages for the temp workers, as they don't have to fully commit themselves and lose precious time in their lives, and also they have the flexibility to switch their roles. But what does all of this mean, from an organization's perspective? Let's dig in to find out.
1) Higher Wages
When temporary workers are hired, they cost more than the permanent workers, for the hours they contribute. This payment is a mixture of the employee's and staffing agency's rates. Hence, it is usually higher than normal.
Since companies do not provide any extra perk to the temporary workers, they have to somehow compensate by increasing their hourly pay rate plus need to set up reserves for dryer times.
2) Lack of Teamwork
Even though the temporary and permanent workers carry out their duties under the same roof, there can be an underlying alienation, that prevents both parties from working efficiently as a team. Temp workers do come in handy but they do not always add substantial value to the entire team.
The fact that temp workers have more freedom, and get paid more, can also cause a rift between the long term workers and the temp workers. An invisible tension may evolve between these two types of workers, which can affect work tremendously.
3) Lack of Commitment
Because of the short-term nature of their job, temp workers not always show commitment. Which depending on the work, is natural given the fact that they do not participate and aren't much involved in given tasks, compared to the permanent employees.
But this depends on a lot of factors like the overall work, work ethics of a temp, how he/she is treated on the job, and if there are any doors open for long term work. The behavior is subject to a lot of other factors as well, but most often, it is noticed that not all temp workers give their 100% to a gig.
4) Relying On Agencies
Who decides where the temp workers will fit? The staffing agencies. They are the mediators between the organization and the workers and make communication between them possible.
Even if they make the work easier, organizations have to heavily depend upon these agencies to do the screening to notice the problem employees. However, an organization can always put a master vendor in place who will act and screen on behalf of the organization for the appropriate employee thus minimizing the risks. Another option is demanding a copy of the background check done on the individual who is about to get hired.
1) Reduces Benefits Requirement
Unlike permanent workers, temp workers have more freedom, but less additional benefits. Full-time employees are eligible for benefits, but temp workers are not. They are not entitled to any type of bonuses, insurance, or other amenities. So, the cost gets cut down but the temp workers work on the same level as the full-time workers.
The benefits are often provided to the temp workers by the agencies that they are placed by. So, the organization doesn't have to bear this cost.
Permanent employees could be absent for multiple reasons. When they take leaves or go on vacations, temp workers usually fill up their roles for a short time. The contract can be drafted in a way that suits the length of the permanent employee's vacation.
And thanks to the existence of staffing agencies, these temp workers can be hired within the blink of an eye.
3) Trial & Error
The duration of the temp workers' contract in an organization can be treated as an evaluation period. Skills and talent can be analyzed without committing to permanent employment. If one temp is working out, you may consider hiring him/her as a permanent employee, and if she/she isn't working out, you can look for another. It's that easy and convenient!
Every manager has made a bad hiring decision at some point, which might have cost the company a lot of money, and productivity. So, hiring temp workers is an excellent way to pre-screen them, to see how beneficial they will be to the company.
4) Time & Money
When a company leaves the responsibility of hiring temp workers to external agencies, they save money that would have been spent on advertisements, background checks, and training. And the most significant drawback is that it would cost the company a lot of precious time. So, this is where the staffing industry comes to the rescue with a cape on! When a company relies on them for hiring their staff, they will reduce all of these extra unwanted costs. The agencies tend to find the perfect match for your company, and they do it quickly.
Another point which should be mentioned is that part-time employees are paid at an hourly rate, rather than salary, with no additional perks or company benefits. Short-term use of temp workers will save you money, but long-term use will cost you more.
The bottom line...
Like all industries, the staffing industry and the usage of temp workers has it's drawbacks, but considering the growth in their recruitment, it is quite self-explanatory that the pros often outweigh the cons. But we have to sit tight and see how this market further evolves.
Want a seamless workforce management experience? Give Stafflist a try!