The Inside Scoop on Temp Work: Hiring Hacks You Should Know

The staffing industry has significantly grown over the last decade, reaching 650 billion in revenue in 2022.¹ Today, more and more agencies are established and flourishing.

Working with staffing agencies is a strategic decision that can enhance your workforce management. If you’re not hiring temporary employees, you might be missing out on why businesses continue to work with agencies that offer temporary staffing. In this blog, we’ll share the challenges, benefits, and best practices in temporary workforce solutions.

5 Areas You Need to Focus on When Hiring Temporary Workers

Hiring contractors may be a little different from employing permanent staff. It also comes with new challenges. Here are a few things you need to look out for to ensure smooth and successful temporary staffing solutions:

1 .Consistency and Quality

Temporary workers are usually hired to cover for limited job openings due to a permanent employee’s extended leave, or to perform a short-term project. This method risks employing workers who are not very knowledgeable in the tasks they need to accomplish.

Additionally, your existing teams already have their own processes in place. It would require the new temp to learn and adapt these systems before they can perform their tasks with maximum efficiency.

This can be remedied if a hired contract worker is a great match for the tasks and responsibilities they take on, especially if they have had previous experience.

2. Legal Considerations

Permanent and temporary workers do similar jobs, but under varying conditions and regulations. It would help you to learn the difference between W2 (permanent) and 1099 (contractor) forms prior to hiring. Also, you correctly identify their worker classification and understand the varying labor laws that apply to each classification. This will ensure that you’re compliant with the state, federal, and local laws, and prevent any legal risks in the future.

3. Higher Turnover Rates

Temporary workers have more flexibility with their contracts as they are not considered full-time company employees. By definition, temporary workers are only contracted to work for a specific period of time, and will eventually need to be replaced. Consider whether high turnover rates may potentially disrupt your business. Also look at the resources you may need to find another individual to fill the role.

4. Ease of Communication

Managing communication and expectations between the company, the staffing agency, and temporary workers can be complex and may lead to misunderstandings or conflicts. For example, if the work tasks or compensation and benefits are not communicated clearly among the three parties, the contract worker may feel confused and frustrated, leading to poor work performance.

5. Cost Considerations

The initial cost of partnering with a staffing firm can be challenging to most companies. In some cases, it could even be higher than direct hiring due to staffing agency fees, the cost of onboarding and training contract workers, and a higher hourly rate for specialized roles. But as we’ll discuss further down, these costs pay off in the long run.

7 Ways a Staffing Partner Can Help

While there are different challenges to hiring temporary employees, the fact still remains. More and more companies are trusting staffing firms to find qualified individuals for their businesses. Here are some reasons for that:

1. Flexibility

One of the most apparent benefits of a temporary workforce is the ability to scale a business up or down. With traditional employment, it becomes difficult to simply reduce your company size. Aside from risking legal consequences, you probably will need to offer a hefty termination fee to many employees. And it’s never an easy decision to let employees go.

With a staffing firm, you’ll have the answer to the changing market demands, economic fluctuations, and possible crises. An agile workforce will help you manage seasonal demands and uncertainties more effectively while keeping your business operational and robust.

2. Cost Efficiency

It’s true that the initial cost of partnering with a staffing firm is a huge factor in deciding whether to employ contractors or not. However, it will pay off in the long run. Here are a few costs you’ll save when you work with a staffing firm:

Overhead costs. The staffing firm takes charge of benefits, payroll, and compliance. This minimizes costs on administrative expenses and HR resources.
Training and onboarding costs. Candidates from staffing agencies are pre-screened and qualified for their positions, saving resources spent on training and onboarding.
Benefits and liability. Staffing firms often manage insurance, workers’ compensation, and other liabilities, reducing risk and the burden on your business.
Advertising fees. The staffing firm handles recruitment and advertising to attract talent, reducing resources spent on posting job ads and marketing.

3. Access to a Large Talent Pool

Staffing firms boast a large talent pool. All of these individuals are carefully vetted to ensure they’re qualified to fill your open jobs. Unlike traditional hiring platforms, staffing firms are more likely to find the right person. With various skills and expertise levels, you’ll be able to quickly fill your positions.

Access to a Specific Niche

Another benefit of working with a staffing agency is having access to specialized talent and expertise. A good staffing company will have people with specific knowledge in certain industries. This ensures that you get the right people you need who are experts at what they do.

4. Reduced Hiring Time

LinkedIn says it could take up to four months to fill a position, depending on the role and industry.² Not only does this slow down operations, but it also affects the morale of your teams, who need to add extra load to their daily responsibilities. Since staffing firms already have a large pool available, it becomes easier to fill open roles. It also reduces the time used to vet and interview job seekers.

Reduced Bad Hire Costs

Another factor that can significantly impact your business is hiring the wrong person. Due to the time it takes to fill an open role, you might overlook factors like cultural fit and overall commitment of your candidates.

This can result in bad hires, and according to Business.com, it could cost you as high as 30 percent of the individual’s yearly salary.3 If that person is earning $40,000, you risk losing $12,000 for a single employee alone.

Staffing firms primarily focus on quality and ensure their recommendations will fit within the company and stay for a long time.

5. Expertise in Compliance

Legal compliance is a huge factor in employment. One mistake could strain your company financially and potentially damage its reputation. Staffing firms, however, are experts when it comes to different laws and regulations. It’s their responsibility to ensure that you perform your duties as an employer without risking your image and losing money.

6. Trial Period for Candidates

Staffing firms like Hughes Resources offer temp-to-hire solutions to give clients time to decide whether to employ an individual permanently. During this time, you can evaluate a candidate’s performance, skills, cultural fit, and learning ability before considering them for a permanent role.

This flexibility ensures that you reduce the chances of onboarding a bad hire. Also, it gives the contractor the time to assess whether he wants to continue his employment with you. Overall, both parties can effectively analyze the compatibility before making a long-term commitment.

7. Focus on Core Business Operations

Outsourcing your workforce benefits your business by managing your finances, gaining flexibility, accessing a larger or specialized talent pool, and assessing qualified candidates. However, most of all, it allows you to focus on your core business functions.

By reducing your overall business cost, you can allocate funds to your business’s core functions and revenue-generating sources. This allows your company to become more profitable. It also opens other opportunities, such as investment in growth initiatives, stock acquisitions, expanding your product line, or entering new markets.

Additionally, you’ll have more time to focus on these efforts and grow your business more efficiently instead of worrying about tax regulations, labor laws, employee classification, benefits administration, and workplace safety standards.

Outsourcing your hiring process and seeking temporary employees allows you to focus on your primary business activities while ensuring you have the right workforce in place.

ACCESS TOP-NOTCH STAFFING SERVICES WITH HUGHES RESOURCES

We understand the pain of managing a business, especially given the current workforce demands and the economy’s ever-changing landscape. That is why we at Hughes Resources dedicate our efforts to finding the right candidates for our clients.

Let us empower your business by employing one of our qualified candidates today. We offer talent in industrial, clerical, and professional fields. Call us today to learn more.

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