Sooner or later, your business may have to consider using a staffing company for temps or hiring full or part time employees. The process for deciding what is best may not be easy or quick. Many businesses use the understandable criteria based on revenue. You can think of revenues in terms of money saved, which is typical, or projected profits.
In reality, the equation will include all factors:
- Reduced expenses
- Higher production levels with reduced expenses, and…
- List of additional savings and benefits.
As you know, everything comes with pros and cons, and today we will take a closer look at hiring employees and using a temporary staffing agency.
Full-Time Employees – Are They Ideal?
Full-time employees will generally have a stronger and vested interest in the business in which they are employed. The degree to which this occurs will vary because some people will always be more committed, loyal, and appreciative than others. Every employee also knows they are expendable and can be fired. Down economic years have shown just how insecure employment can be. Obviously this is a powerful motivator and losing one’s job can have devastating consequences.
All businesses have an opportunity to invest in full-time employees. Like any other investment, nothing is certain but the chance of a positive ROI exists. Almost any employee can become a valuable asset in the future. You may or may not see signs of this early on, and this just adds to the uncertainty and hope that each employee demonstrates a high level of performance.
One of the primary reasons for hiring a temporary worker is they cost less for the client business. You are likely aware of the areas where you can save by using temp workers. But just a few obvious areas are in taxes and expenses paid for retirement. Similar savings are realized with various types of insurance you will not have to provide to temporary workers.
One of the more unusual situations arises with troublesome and difficult employees. For most companies, the first step with discipline can be verbal warnings, and then it progresses to written, etc. The process can be lengthy and involved depending on circumstances. Of course we have all seen news stories of employees suing former employers for perceived infractions or discrimination.
Temporary Staffing Agencies – Why Are They So Popular?
The pros of using a staffing agency are many and significant. The client company can see savings in both money and time. For example, the hiring process can be completely outsourced. No need to interview, screen applicants, and all the other tasks. In the area of liability, this is reduced because the client company is usually not the employee of record. If the client company wants to fire or lay-off a temp worker, this is easily done with a quick phone call to their staffing company.
Using temporary employees is an ideal way to “try before you buy,” so to speak. Each temp worker can be monitored and assessed for performance and overall positive indicators of success. Then the company can decide to hire permanently or keep extending the contract, as desired.
Any time you are using a temp staffing company you are taking some risks. There have been accounts of client companies receiving lower quality workers. This obviously is not supposed to happen, and it can be prevented by hiring directly. Temporary workers can exhibit an attitude that encompasses instability or similar qualities. They know very well what their status is, and that can result in a less motivated worker. You can almost forget about a high degree of loyalty from every temporary worker.
There is a balance that has to be found and accepted when you’re considering between hiring full-time or using outsourced temporary workers. Another important point concerns the particular positions being outsourced. Some of the points made in this article will be different or changed in the event of hiring professional temp employees.
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If you would like to discuss the pros and cons of permanent vs. temporary hiring, Flexicrew can help. Give us a call Today.