Why You Should Hire Temporary Employees
To satisfy your customers, small business owners must decide whether to hire additional workers temporarily to cover increased demands, or recruit more permanent workers. Different factors determine which one is right for your business, such as time, cost, and job responsibilities.
Although both seasonal and permanent workers can be beneficial, you should determine which one is right for your business. In this post, we’ll explain the differences between the two types of employees, and provide the benefits that temporary workers can bring.
The Differences Between Seasonal and Permanent Workers
While many business owners hire seasonal workers to meet growing customer demand, they can also be recruited to fill a vacancy until a full-time employee is hired. The term is sometimes used interchangeably with temporary employees, and they can be hired when you need someone to cover during a maternity or disability leave.
Typically, seasonal or temporary employees are recruited through a staffing firm. They aren’t direct employees of your company, although they report to your place of business and complete tasks. Due to this, the temporary staffing firm will charge a fee above the hourly wage paid to the worker.
Hiring permanent workers means your business incurs the costs of recruitment and onboarding, even though these individuals are working for you for a limited time. You directly hire them to work on a temporary basis when extra work is available.
In comparison, when hiring a seasonal worker through a temp agency, you aren’t responsible for employee labor costs such as taxes, workers compensation, and unemployment benefits. However, hiring permanent workers directly means labor laws apply. Additionally, you’re responsible for providing certain benefits like Social Security and unemployment benefits.
When you consider the costs of paying salaries and taxes to hire permanent workers that will not remain on staff very long, you may want to utilize a temp agency.
Benefits to Having Temporary Workers
There are many benefits to having seasonal or permanent workers on your staff. Keep reading to find out which benefits matter most to your business!
Provides a Flexible Workforce
Seasonal workers allow you to fulfill ever-changing staffing needs. Adjusting the size of your workforce becomes easier since you don’t have to take time to post job openings, review resumes, and interview potential candidates. You simply add or deduct support as needed without making painful layoffs or paying full-time salaries.
When temporary help is needed for a short time, it isn’t worth hiring permanent workers that you must let go in a month or two.
Boosts Employee Morale
Overworked employees usually aren’t very productive. In addition, if your employees feel overburdened, it’ll wreak havoc on employee morale. Due to this, it can be pivotal that you hire additional help when it is needed.
If you ignore that your business is understaffed, you could begin to see a higher turnover rate. Seasonal workers take the pressure off, keeping employees happy and motivated.
Avoid Overtime Pay
When your business has increased demand, full-time employees might work more hours, which requires you to provide them with overtime pay. To avoid this, seasonal employees can work during busy times, which will likely lower your payroll costs.
Find Specialized Help
In the past, seasonal workers were only considered to fill jobs that required minimum skills. Today, with advances in technology and economic changes, the market is flooded with experienced workers who have many diverse skills.
From marketing and legal services to web design, you can save a lot of money by hiring temporary workers for one-time projects. Whether you’re opening a new retail location or want to redesign your website, you can use a staffing firm to find top talent.
Employers are finding that using seasonal workers with a specific skill set is also a good way to determine if they’re a good fit for the company. This is something to consider if you have seasonal needs that could develop into a permanent position.
Bottom line, seasonal workers can benefit your company without majorly increasing your labor costs. Of course, permanent workers also bring many benefits to a company. Their permanent status offers assurance that tasks will be completed without delay. Your decision on which one to hire depends on your business’s current and future needs. Hopefully, after reading this post, you have a better idea of how to decide!
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.