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Temp to Hire – Why Small Business Can Benefit From Temporary Labor

In Business on May 6, 2013 at 4:27 pm

 

Small businesses often believe that direct hire situations are ideal. However, that might not always be the case.

Temporary employees have many names… temps, contingent labor, consultants, and contractors. These employees have already proven proficiency in their respective fields and can usually assume a role with little to no training. Aside from this, there are many other reasons a small business should consider relying on the expertise of a reputable staffing firm.

Temporary Replacement

One reason that businesses elect to hire temporary employees is to assume positions of permanent employees who are out for extended periods. This may be vacation, maternity leave, personal issues, temporary disability, or illness. A skilled, pre-screened employee can help to ensure productivity is not lost during the original employee’s absent.

Fluctuating Needs

Temporary workers are often utilized in positions that require staffing flexibility. This may be the case for special projects, seasonally fluctuating businesses, unforeseen economic cycles, or a temporary increase in workload. The major advantage in this situation is that temp workers can be deployed quickly to assist in a number of unforeseen situations.

Evaluation

Many companies, especially those that rely heavily on information technology personnel, use specialized staffing agencies. This offers them the opportunity to choose from a number of potential full-time employees that have already proven that they possess the skills needed to fit the position. These temp-to-hire positions allow the firm the opportunity to evaluate the potential employee’s fit with the company.

Cost savings

A good staffing firm will have a pool of qualified candidates. This helps to eliminate the business’ long search for employees with the right skills. And, since the agency handles all aspects of payroll and taxes, the small business enjoys both time and financial savings. Additionally, the staffing agency will provide and administer benefits and offer training in areas the candidate may need assistance.

Access to experience

A quality staffing firm will have connections to individuals who may otherwise not be in the market for a new position. And, many will offer a finder’s fee to encourage recommendations by peers. An industry-specific staffing firm will also have a complete database of pre-screened resumes and can match employers to candidates quickly.

Overall, the decision to hire directly or utilize the services of a staffing firm is up to each small business owner. Some claim that the high initial expense negates any possible cost savings but in the long run, most businesses do see the advantage of outsourcing their hiring practices. In many cases, this eliminates the need for human resources department and can also mean the business can avoid negative confrontation in the event of termination.

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