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In an increasingly complex and dynamic business environment, companies need to become more flexible in their approach towards staffing. Temporary staffing is one of the key tools available to business organizations to manage the business operations with greater efficiency and cost-effectiveness. The flow of orders may not be consistent throughout the year for most businesses. Many businesses are seasonal in nature, which means that the pressure of work is high during the peak season and low during the off-peak season.
The most effective way to achieve high productivity with minimum staffing overheads in such conditions is to maintain an optimal combination of permanent and temporary workers. Temporary workers are hired for a specific period to meet the excess work demands during that period. Once the work pressure is relaxed and orders have been delivered as per deadlines, the organization may relieve the temporary staff to reduce its operational costs.
Increased Production Capacity
Temporary staffing solutions help to enhance the overall production and delivery capacity of the business. If the organization has an opportunity to receive large orders that must be executed and delivered within a tight deadline, it can quickly hire temporary workers to support its existing permanent workforce. This allows the organization to maximize its production output and revenues, and make full utilization of the available business opportunities.
Lower Costs of Production
Permanent employees are usually costlier for a business because they must be paid a fixed amount of salary or wages, irrespective of the extent of work performed. In a low season, permanent employees continue to receive the same pay even though they may not have as much work to do. Temporary employees, on the other hand, are typically hired when the business season is at its peak. They are usually relieved of duty when the season is over. Furthermore, they may not receive the same perquisites and benefits as the permanent employees, and this reduces the overall employee costs further.
Hiring Workers with Specialized Skills
One of the advantages of temporary staffing is that it allows a business organization to hire workers with specialized skills that may be required to execute a particular customer’s order. Such skills may not be necessary in the ordinary course of the company’s business. Therefore, the company need not refuse an opportunity to receive an order, and it can successfully deliver the order with the help of temporary workers with a specialized skill.
Lower Administrative Overheads
Temporary workers may be the employees of a third party staffing agency. Such an agency is usually responsible for maintaining the payroll, leave, health insurance, workers’ compensation, and other human resource issues relating to such employees. This may help to reduce the administrative burden and overheads of the business organization significantly. As per the American Staffing Association, 9.7 million temporary workers are hired by U.S. staffing companies each year due to the inherent benefits of this system for business and industry.
Lower Motivation of Temporary Employees
One of the downsides of temporary staffing solutions is that it becomes difficult to motivate temporary workers to perform to the best of their ability. Temporary workers are aware that they may not receive any special incentives, promotions, or recognition within the company of their temporary status. Therefore, the productivity goals of the organization may be compromised to an extent because of the lower enthusiasm of temporary workers to deliver a good performance.
Dependence on the Staffing Firm
Temporary employees are usually hired through professional staffing firms that employ such workers on their payroll. This makes a business organization heavily dependent on the credibility of the temporary staffing firm to supply good workers. Companies are usually not in a position to conduct a screening process for such workers, and they have to rely on the assurance of the staffing firm to provide honest and efficient workers.
Interpersonal Conflicts in the Organization
Temporary employees are not attuned to the environment and work culture of the organization. Therefore, the chances of conflict between permanent employees and temporary workers may be higher. It may be more challenging to achieve cohesive teamwork when there is a mix of permanent and temporary employees for a particular task.
Risk of Leaking Privileged Information
The business organization is exposed to an obvious risk of temporary workers getting access to privileged information about the business operations. Such workers may learn new skills and techniques that are exclusively developed within the organization. They may also receive access to sensitive or valuable information about product costing, pricing, and other strategies that are critical to the business in a competitive market.
Temporary workers are usually covered under the same minimum wage laws as the permanent employees of an organization. Furthermore, the temporary staffing agencies add a considerable profit margin for themselves in terms of a fee or commission on each worker they supply. Therefore, a business organization must perform a careful cost-benefit analysis before deciding on hiring temporary employees.
The need for temporary staffing solutions has grown in recent years due to an increased price pressure and stiff competition in the global economy. However, all the pros and cons of opting for such hiring arrangement must be evaluated objectively before a business hires temporary workers. The needs of each business may vary, and this system may be more suited for some businesses than others.
Often in business it's grow or die, and the small business owner who does not manage to grow along with demand often finds that demand dwindling, and the business dying out. Growth costs though, especially when it comes to labor. Temporary staffing can help to alleviate some of that cost in the short run however, but only if used appropriately.
Hiring a well-trained worker, who's ready to begin work immediately, and immediately adds value to your business from the first day is a rarity. Instead, you'll find that new employees cost time and money to train in their new tasks, regardless of experience. Both time and money tends to delay expansion though, and when you need growth to take advantage of the marketplace, you need that perfect worker now rather than after a manger finishes with training. That's where temporary staff comes in handy.
You can hire temporary staff that is fully trained to handle the job at hand. Though initially more expensive in salary than a new hire, this training translates into instant value added. Whether you're looking for machinists who know the manufacturing machines you use inside or out, or programmers who code in their sleep, temporary staffing can get you precisely what you need, immediately. Further information is available on temps at Business.com, just click on the available links.
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