When Should You Hire Temporary Employees?

Today’s small business owner is as busy as ever doing everything possible to keep the business moving forward. They are working hard to attract new business, reduce costs and become a market and industry leader. But because of that, the small business owner often doesn’t have time – or the expertise – in interviewing, hiring and recruiting top talent.

Need to Hire? Post Jobs for Free

Even though the right staff is crucial to business success – most small business owners get into business to run the business – and are not well-versed in managing staff needs. Others have very small HR teams, or even handle those functions themselves without a dedicated HR staff.

But no small business owner can do it alone. So where could today’s small business owners turn to when they face hiring challenges?

The temporary staffing and recruiting industry is a great place to start. According to the American Staffing Association (ASA), there are about 17,000 staffing and recruiting companies in the U.S., which altogether operate around 35,000 offices. Why should small businesses consider working with a staffing company? According to the ASA, staffing companies offer a wide range of employment-related services, predominantly:

Temporary and contract staffing
Recruiting and permanent placement
Outsourcing and outplacement
Human resource consulting

Here is a look at 9 ways small businesses can benefit from hiring temporary workers:

There are many reasons employers can benefit from working with a staffing agency. One of them is something every business owner wants: More time. Here

More time to focus on the business. “Staffing agencies have a pool of qualified and screened candidates for positions that can cut the cost of down time and the additional burden on the other employees in the organization,” says Wendy Benning Swanson, President and CEO of Verum Staffing, a Twin Cities-based staffing agency specializing in contract, contract to hire and direct placement of scientific professionals. “In small companies, there is often not an HR person, so management is doing their own recruiting. Then they have to spend time screening resumes, calling people in for interviews and interviewing a large number of people. The value of a staffing agency is that they will send you one to two qualified resumes that have already been screened saving you time.”
Hiring temporary help can also save money. According to the U.S. Bureau of Labor Statistics, the average direct cost for a new employee is $57,967.88 including basic wages, benefits, and taxes. Add in overtime during the vacancy of the position, recruiting and advertising costs, screening and testing costs, and this number can grow even higher, points out Benning Swanson. A staffing agency will be hiring the individual under their unemployment and worker’s compensation claims which could decrease the cost of overhead due to injury claims and turnover and then you will be able to really see if someone is a fit before you bring them on to your team.
Flexibility: If you have people that are out on vacation or maternity leave, a staffing agency can be a resource to find someone that could fill in for your employees when they are gone, says Benning Swanson. Or, if you have a project that is due and you need some additional help, but you don’t want to hire somebody full-time or on a permanent basis, a staffing agency would be able to find a contractor that has the skills and abilities you need.
Try before you buy: Before you decide to bring someone onto your team and make a large investment in time and resources, give them a chance to prove themselves. Many hires do not live up to the employers expectations. Most staffing agencies will offer to replace the individual or they would have some sort of guarantee if the employee doesn’t work out. And those who do work out could turn into good employees who you decide to keep on full-time. It’s a win-win.
Payroll/benefits and retirement: Many staffing firms offer health care benefits and retirement to employees. They also handle payroll and all administrative work. As a small business owner, you can focus on growing your business while the staffing firm can focus on handling your business. With the Affordable Care Act changes, it’s hard for many small business owners to understand all of the legalities of Obamacare. Staffing firms can take that off your plate and provide assistance.
Seasonal help: Do you have peak times where you need more staff and other times where you need to reduce staff? Are you a retailer who is busy during the holiday season? A manufacturer who suddenly landed a new contract? Do you need more help during summer months? A temporary staffing company can help solve those hiring needs and staff for peak times.
Motivated employees: Today’s contract or temporary worker is motivated to continually show they can do the job for each and every company they work for. You won’t get the disgruntled staffer who is coasting. They could bring in a needed a boost to existing staff morale. Bringing in extra help when needed also motivates permanent employees because it takes the burden off them – and shows management understands the need to staff up when busy.
Networking opportunities: Any temporary employee who has a good experience with your company is going to share that experience with their network. A positive experience with your business is going to spread fast and it can help promote the company brand and reputation. People like to work where others have had success and with social media, that positive experience will spread fast. In addition, each temporary employee brings a unique network of past professional colleagues and experiences. Sharing those experiences could open up your company to new clients, vendors, suppliers and business partners.
Less stress: With less to worry about – any small business owner is only going to be less stressed and that only reflects one’s personal health – but also could trickle down to the rest of staff who come to work in a happier, healthier work environment.