Are you looking to grow your business, expand into new markets or meet seasonal demand without adding permanent staff? Then the use of temporary labor may be right for you. These workers can help your business get through peaks and valleys in demand while reducing risk and strain on your HR team. Working with contingent employees does not have to burden resources or the environment. It can help businesses expand capacity when needed, mitigate risks from investing in fixed capital that cannot be redeployed when demand drops, or support only where the opportunities are the best. This article will help you understand what temporary labor is, why you need it and how to apply for it.
What Is Temporary Labor?
Temporary employees are people who work on an as-needed basis. They are often called contingent workers because employers do not have to provide benefits. Temporary work may be offered by an agency that onboards and manages temp workers, or it may be provided directly by an organization that has work to be done for which it needs staffing flexibility. Temporary workers may work for an agency that provides staff to clients on demand. Examples include nurses, physicians, technical, industrial, and professional personnel. Temping may also be a way for professionals to bridge the gap between jobs or meet other needs in their lives, such as providing care for dependent family members or earning extra cash.
There are several types of temporary work: – Short-term – a few weeks to a couple of years: These positions are often found in fields with seasonal demand, such as healthcare, education, and events. – Contract work – typically lasting between three and 36 months: These assignments are used in cases where the client needs a specific skill set, but not permanently. – Long-term – one to five years or more: Government agencies, businesses, and non-profit organizations may use long-term temporary labor in Vancouver to fill recruitment gaps.
Pros of Using Temporary Labor
– Flexibility: If your business needs to expand or contract, then hiring temporary labor allows you to adjust your staffing needs quickly. It also allows you to experiment with new products and services without the commitment of hiring a full-time team member. – Cost-effective: Hiring a temporary worker can cost as little as 10% to 20% of what it would take to hire a full-time employee. This means you can experiment with new products or services, then decide if they’re worth investing in. – Reduced risk: If you hire a full-time employee whose skill set isn’t a perfect fit, you’re stuck with them for a long time. With a temporary worker, however, you can experiment with different skill sets and let them go if they’re not a fit for your company.
Cons of Using Temporary Labor
– Reduced training: When you hire a full-time employee, one of the advantages is you can train them in your company’s ways of doing things. You don’t have that option with a temporary worker, making it harder to implement consistent processes. – No benefits: While it’s tempting to hire temporary workers to avoid paying benefits, you might regret it if your company loses money and you don’t have any backup. – Temporary workers may not be a good fit: Hiring a temporary worker lets you try different skill sets. However, if you aren’t careful, you could wind up with a team that’s a patchwork of skills that don’t fit well together. You’ll need to be cautious that you don’t hire a mix of workers that doesn’t gel or have the skills you need for the long term.
How to hire temporary workers
If hiring a temporary worker, ensure you understand the differences between hiring a contractor and an employee. If you hire an employee, you will be responsible for paying their taxes and providing benefits. They also may be eligible for unemployment. Contractors are accountable for their taxes and often do not qualify for benefits. When hiring a contractor, ensure they are properly documented as an independent contractor. This can help you avoid penalties and lawsuits if the worker decides to sue you. You can also start your hiring process by posting a job description. When recruiting, you’ll want to be sure you screen applicants properly to make sure you hire the right person for the job.
Tips for working with temp agencies
– The best way to ensure you work with a good temp agency is to start with a strong RFP (Request for Proposal) that outlines the type of workers you need and the type of service you expect from the agency. Then, check references and ask for client references. – If you’re hiring for an onsite position, visit the agency. If hiring for a remote position, ensure you understand the agency’s screening process. You also should check references for any agencies you’re considering. – If hiring many workers, be careful when choosing an agency. Bigger agencies can be a good choice, but they also may be more rigid and less flexible. Smaller agencies can be a great choice if your project is more complicated. – It’s also important to remember that agencies don’t have to be enemies. You can work with them to get the best talent for your company.
Temporary labor is used when a business can’t afford to hire full-time employees or needs to expand its workforce but doesn’t have the capital to do it. There are many benefits to using temporary labor, including flexibility in staffing, reduction in costs, and the ability to reduce risk. You can hire temporary workers by posting a job description or starting with a Request for Proposal. You can also find an agency to help you find temporary workers. Now that you know what temporary labor is, why you need it and how to apply for it, you can ensure your business is ready for any expansion or contraction in demand.