Can your business benefit from temp agencies?
According to the U.S. Bureau of Labor Statistics, the employment services industry in the U.S. is expected to continue to grow as more businesses look at hiring seasonal and temporary workers. This area is expected to increase 19 percent, which is an 8 percent increase over all other industries. This means more businesses of every size will be looking at hiring temporary help.
Meantime, a report Down Under shows some concern over the ability of temp workers to gain a regular foothold in the job market.
Speaking on research from a Productivity Commissionpaper, one Australian union expressed fears that many temp employees will not get a fair shake at receiving long-term employment.
According to a spokesperson for the Australian Council of Trade Unions (ACTU), many Australian temp workers have problems being able to secure a mortgage and make plans for later in life. With concerns for both temp workers and businesses looking to hire them, the latter must ask if a temp agency is right for them.
Among the pros and cons of hiring temp workers >>>
A company that hires temporary workers can reduce the tenure if they do not have enough work to keep them busy or extend it if they get more work than planned. When you hire an employee, you have to pay them even if they are not busy or lay them off, which can be a costly and unattractive option.
The small business can also request a replacement of the temporary worker if they are not performing satisfactorily. Replacing an employee can be more complicated.
Less paperwork and time commitment
When a business goes through a temp agency for workers, they do not have the responsibility of the paperwork involved with hiring an employee. They don't have to pay the taxes and other contributions on the person to the different agencies. They simply pay a flat rate and the agency figures out where it goes and when.
The agency is also responsible for doing background checks and interviews to ensure the person is qualified. The down side of this for the business is they have limited control in choosing who works for them, except in the case that one person doesn't meet their needs or expectations.
This can be both a benefit and a disadvantage. On the one hand, you are not paying a person year-round if you only need them certain times of the year. However, you are probably paying them about 30% more than you would if they were hired directly. Another issue is in the cost of training. You will have to train a new person every time you ask for someone from the temp agency. This can become a drain on resources.
Lack of commitment
Because the temporary worker is not invested in your company, they may not have the same level of commitment as you would see with a direct hire. However, if they know you are seeking a temporary to permanent person, they may work extra hard to prove themselves. This could help you find a full-time staff member without additional recruiting and hiring.
Using temp agencies is not for every business, but it can benefit any company that has certain short-term needs.
It can provide the assistance they require in busy times without obligating them to a permanent solution. It can also allow them to concentrate on other aspects of the business instead of the HR tasks that come with hiring an employee, including billing clients, assisting with marketing tasks, and promoting the company via social media.
To decide if your business could benefit from using a temp agency, you will have to calculate if the benefits outweigh the disadvantages.
About the author
Joyce Morse is an author who writes on a variety of topics, including SEO and mobile credit card processing.
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