Technological innovation has fundamentally changed how companies plan their workforces.
Businesses are still on the hunt for proven, reliable talent, but a profound emphasis has been placed on shifting how they go about sourcing, structuring, and overseeing talent.
Similarly, we’re seeing new work models breaking through on the horizon, moving fluidly into the mainstream, each accompanied by its own array of challenges and underlying assumptions.
Given these changes, it's hardly unexpected to see temporary work arrangements becoming standard practice in today's work environment. At a glance, temporary staffing offers an efficient solution that works for all parties involved.
For employers, competitive pressures have increased demands for flexibility, with work being redefined to make optimal use of temporary workers and independent contractors. Using temporary workers offers businesses a chance to be resilient, whether as a response to the absence of regular workers or because of volatile demand for their products.
And when it comes to temporary workers, many seek to strike a better balance between their work commitments and personal lives; others are driven to chart their own career paths by selecting projects or roles that help them cultivate a distinctive skill set. Engaging in temporary employment can introduce them to a diverse range of challenges and rewards, paving the way for continuous learning and skill development. This leads to finding purpose and fulfillment in work.
Even though there is a lot of rationale driving the widespread adoption of temporary staffing, there are plenty of generalizations and unfounded assumptions surrounding the practice. Many enterprises and workers are indeed cautious, weighing the pros and cons before deciding whether to pursue this path.
In this post, we explore the complexities of temporary staffing and its implications for your workforce, debunk common misconceptions, and provide some helpful guidelines on how you can make the most of it.
Understanding Temporary Staffing
Temporary work is an umbrella term that covers several different forms of employment arrangements, including fixed-term employment, on-call employment (workers called into an organization on an ad-hoc basis), and temporary agency employment.
The forms and types of temporary employment vary across countries and industries according to employment regulations and labor use needs and strategies.
One key feature of temporary employment, evident from its name, is that these workers are usually hired for a specific duration. This can include fixed-term contracts, project-based assignments, or seasonal and casual work, such as day labor.
There are various categories of temp workers, each with distinct characteristics and roles:
- Freelancers: Freelancers are self-employed professionals who offer their services to different clients. They have the freedom to choose the projects they want to work on and often set their own schedules. Freelancers work in various fields such as writing, graphic design, and programming.
- Independent contractors: Independent contractors perform specific tasks for a company without being its regular employees. They typically have specialized skills and handle their own taxes and insurance. Examples include consultants, IT specialists, and construction workers.
- Substitute workers: Substitute workers step in for regular employees when they're on vacation or sick leave. They usually have similar qualifications to the person they're replacing. You often find substitutes in teaching, nursing, and administrative roles.
- Seasonal workers: Seasonal workers are hired during times of high demand in specific industries, such as retail during holidays, farming during harvest season, and tourism during peak travel times.
- Temporary agency workers: These individuals are employed by an agency and sent to work for different companies temporarily. They might have short-term contracts or work on specific projects. The agency handles their pay and benefits, and they can be assigned to different companies as needed.
- Temporary workers: Temporary workers provide flexibility for employers and are a cost-effective solution for short-term needs. Temporary roles can also offer workers worthwhile experience, skill development, and potential pathways to permanent employment.
The Role of Staffing Agencies in Temporary Employment
A staffing or placement agency typically maintains a list of qualified, pre-screened workers who are ready to start at short notice.
Employers pay the temp agency for each candidate they provide, and then the agency pays the candidates an hourly wage. Candidates may also negotiate contracts based on their availability, wage expectations, and the type of work they provide to the employer. Organizations that hire candidates through a temp agency typically don't deal with payroll, hiring, firing, or benefits.
So, whenever there's a need for rapid adjustments to your staffing level—perhaps due to changes in the external economic environment—you can reach out to a staffing agency, and they’d be able to recruit potential hires much faster than you could on your own.
Other reasons why you’d want to partner with a staffing agency include:
- The knowledge and expertise possessed by hiring professionals who are well-versed in recruiting methods are often superior to that of a company's HR team. This is primarily because recruiting is the primary focus of hiring agencies, whereas your internal HR department may already be overloaded with tasks.
- Hiring temporary agency workers can lead to significant cost savings by reducing liabilities such as holiday pay, maternity cover, and sick pay entitlements. However, the precise amount of savings may vary depending on the country and welfare regulations.
- By tapping into a staffing agency’s resources, you can also reduce fixed costs associated with labor hiring and recruitment. Outsourcing certain functions like advertising and interviewing allows you to eliminate non-core competencies, freeing up you and your HR team to focus on what you do best.
- Hiring temporary agency workers can serve as a cost-effective method for screening potential permanent employees and evaluating their performance on the job. In simpler terms, recruiting permanent staff from a pool of temporary agency workers allows you to "try them out for fit" before making a long-term commitment. This framework may be particularly appealing to firms operating in tight labor markets where qualified workers are scarce.
Temporary Staffing by the Numbers
1. Nearly 3 Million Temp & Contract Workers Are Employed Weekly
With approximately 16 million employees benefiting from staffing opportunities each year, as per the American Staffing Association, the industry serves as a crucial piece of the nation's economy. Notably, nearly 3 million temporary and contract workers are engaged by staffing companies on an average week, underscoring the significant demand for flexible employment arrangements.
One of the most striking statistics is the versatility of temporary staffing across different occupations and sectors. From industrial roles to office-clerical positions, professional-managerial jobs, and even healthcare and IT roles, temporary employees contribute to virtually every aspect of the workforce.
2. 70% of Temporary Employees Consider a Second Job for Extra Income
In the face of today's economic hurdles, the need for extra income has surged, as evidenced by a whopping 70% of adults in the United States now considering a second job to bolster their finances.
This upsurge mirrors the mounting pressure brought on by rising living expenses. Yet, the concept of juggling multiple jobs isn't limited to just students and entry-level workers anymore—it's extending its reach further.
More and more people are finding temporary gigs appealing because they provide the flexibility to earn extra income without the constraints of a full-time role.
3. 90% of Temp Jobs Improve Employability
Interestingly, temporary staffing can open doors to better career opportunities. 9/10 employees find their career prospects soar after doing temporary work. These positions offer more than just a job—they're a gateway to gaining valuable expertise, expanding networks, and boosting resumes.
Learn More: 5 Essential Temp Staffing Stats For Industry Insight
Although temporary work is surging, there are still significant hurdles to overcome. Without careful attention, you could find yourself among the 62% of employers grappling to access candidates with the necessary skills.
Relying solely on traditional hiring methods may no longer suffice. This is where talent-sourcing strategies and technology come into play. By leveraging the digital tools available today, you can effectively find and hire the right temp workers for your needs.
Temporary staff management tools like Workstaff provide practical staffing solutions to help easily manage flexible and temp staff, saving you hours in planning, scheduling, and executing.
The Pros and Cons of Temporary Staffing
Temp workers can fill an array of roles across various industries, from crunching numbers in accounting to providing care in nursing, tackling tech challenges in information technology, and powering production lines in manufacturing, among countless others.
While hiring temp staff isn't a universal remedy for every business case, it holds significant potential benefits for many. Take a moment to weigh the pros and cons, and determine if adding temporary staff to your team fits into your strategy.
Pros of Temporary Staffing
Flexibility for Employers and Employees
Managing fluctuating staffing needs is an inevitability, but one that can have enormous repercussions. There’s no doubt that employees will suddenly call in sick, they’ll take their time off for vacation, or they’ll go on leave if they need to. Sometimes workers quit without notice. Whatever the reason, you need help—now.
This is when you can turn to a staffing firm for help in hiring temporary staff. Just send over a request and you’ll have a replacement worker in no time—for as little or as long as you need them.
From a worker's perspective, temporary positions offer the freedom to embark on distinct career journeys, strike a satisfying work-life balance, and uncover hidden passions along the road.
Cost-Effectiveness and Reduced Hiring Risks
When you only need a bit of help every once in a while, your labor needs might not warrant you hiring another permanent worker. Instead of paying full-time wages for an employee you won’t always need, hire a temp to ensure that you’re not paying for wasted hours.
You won’t have to offer the same benefits to temp workers as you do to your salaried employees, such as health insurance, vacation time, or WSIB. You won’t have to spend as much money on overtime, either. And you won’t even have to pay for the time it takes to administer their payroll, fill out their HR paperwork, or deal with compliance issues. The staffing software will do all that and more.
Opportunity To Evaluate Work Before Permanent Hire
With a temporary worker, you can “test drive” before you make an investment.
An agency staffer generally comes with a few strings attached, so you can assess a person’s abilities, personality, and fit with your company before committing to a long-term working relationship. And if they aren’t a good fit, ask for a replacement — it’s that simple.
Cons of Temporary Staffing
Potential For Lack Of Job Security And Benefits For Employees
The transient nature of temporary work can indeed lead to feelings of uncertainty about the future on the part of the worker, which can undoubtedly be unsettling and stressful. Additionally, due to the absence of benefits like health insurance or retirement plans, temporary workers may find themselves lacking the necessary support and security for their well-being and future financial stability. These insecurities go beyond financial necessities but also affect mental health, as individuals grapple with the challenges of navigating their careers without the safety net provided by permanent positions.
Possible Challenges in Team Cohesion and Company Culture
Using temporary workers might affect the degree of collaboration and teamwork within your team. Your permanent workers might not want to invest their time into getting to know your temps if they’re only going to be around for a short while. This can make it difficult for your temps and permanent staff to build camaraderie, bond, and collaborate.
Long-established teams may cease to function entirely because trust hasn’t been forged with recently added workers.
Legal Concerns
If hiring temporary staffers, you have to make sure that you’re careful about their work statuses and follow the letter of the law when it comes to payment, their assigned duties, and the way you treat them. Otherwise, you could end up facing legal action for worker misclassification. That’s why it’s always recommended to hire temp workers through a temporary staffing agency, instead of on your own, to reduce these legal concerns.
Best Practices for Leveraging Temporary Staffing
Employing temporary workers can help you adjust quickly and efficiently to any workload fluctuations you face.
However, there are still many pitfalls to avoid. Companies that solely reap the rewards of hiring temporary staff without investing in essential practices and tools will hit rough waters later on.
That’s why you need to implement holistic best practices that justify and maximize your decision to hire temporary staff.
Partnering With Reputable Staffing Agencies
There’s really no true substitute for working with staffing agencies.
They offer the fastest, broadest access to all the available talent pools, with an understanding of different specialties and insights. They know client firms expect reliable staffing solutions and that finding the right personnel to see the job through to its successful conclusion is necessary, if not non-negotiable.
A staffing agency can help at every step of the process, even advising on the specifics of which tasks and aptitudes need to be specified in the job description.
You can complement agency recruiting with tools like Workstaff, which optimizes your temporary work assignments even after the staffer is deployed. Workstaff’s software provides efficient check-in and check-out procedures, shift management systems, and a centralized messaging app, making for a smooth scheduling, tracking, and communication process with temporary workers.
All documentation is archived and easily accessed by all parties so that the employer-temp relationship is well-maintained from start to finish. Temporary recruitment software can even be used to process all payroll functions relating to temporary staff.
Clear Communication of Job Roles and Expectations
Temporary staffers, often working on short contracts, may feel uncertain about their roles or the company's expectations. Regular communication can allay these fears and create a more positive working environment.
Determine exactly what you want temporary employees to accomplish and convey those requirements to the staffing firm. Document the tasks to be performed, the required know-how, and the performance standards you expect to be met.
Similarly, keeping the lines of communication open with temporary staff is essential. That’s why it’s advisable to establish a go-to communication system or point of contact to keep them in the loop and vice versa. The Workstaff mobile employee communication app, for example, can streamline communication through a centralized hub for 1-to-1 messaging, team conversations, and mass broadcasting.
Ensuring Proper Onboarding and Training for Temporary Staff
Just because someone is with you for a short time doesn’t mean you can skimp on proper onboarding and training.
A well-prepared temp is a productive temp, so equip your temporary staff with the necessary tools and knowledge to hit the ground running. Keep the training concise and to the point to encourage knowledge retention. If possible, train them in the language, vocabulary, and level they can best understand, and you may even incorporate visual, entertaining content to hold their attention.
Workers who are with you temporarily may not be as emotionally invested in seeking clarification of their duties when they have a question. Having a “buddy” close by to keep an eye out and provide quick answers is a huge advantage to keeping temporary employees on task and track.
Consider using automation to help you create complete schedules based on location, positions, or remuneration. Workstaff’s time tracking features go the extra mile and allow temps to clock in and out from their mobile phones, while pre-filled timesheets and accurate time tracking ensure that payroll is always spot-on. Having this level of efficiency means your temporary staff can really dive into their training without getting bogged down by administrative tasks while they're here.
Compliance With Labor Laws and Regulations
Before hiring temporary workers, it’s a good idea to thoroughly familiarize yourself with the specific labor laws relevant to temporary employment in your region or industry. Keeping an eye on things like minimum wage requirements, overtime regulations, and proper classification of workers can save you headaches down the road. Additionally, don't forget to double-check any paperwork or contracts you provide to temporary employees to ensure they're in line with legal standards.
Partner with a reputable staffing agency to leverage their expertise and resources to navigate legal requirements promptly. Staffing agencies typically stay up-to-date with changes in labor laws and regulations, reducing your organization's risk of non-compliance. You can also consider staffing software like Workstaff to simplify tasks like payroll processing, tax withholding, and employee classification, relieving your team of administrative burdens and minimizing legal risks.
Debunking 5 Common Myths About Temporary Staffing
Temporary employment often falls prey to various myths and assumptions, propagating misconceptions about its nature and value. But these assumptions are often exaggerated and don't always hold.
Here are the most common myths debunked:
Myth 1: Temporary Workers Are Less Skilled
One of the assumptions surrounding the temporary employment debate is that part-time and temporary workers are engaged almost entirely in low-wage, less-skilled occupations.
Temporary payrolls, in fact, reflect significant occupational and educational diversity.
According to a comprehensive study by the American Staffing Association, nearly 50% of temporary workers have some form of higher education, and many have advanced skills honed through years of experience in many different industries. These workers often undergo rigorous screening processes by staffing agencies, ensuring they meet the necessary qualifications for the job.
From an incentive standpoint, temporary employment isn't merely a stepping stone; it's a pathway for continuous learning and professional growth. Many temporary workers capitalize on these opportunities to acquire valuable experience, develop new competencies, and expand their professional networks. So, next time you encounter skepticism about the capabilities of temporary workers, remember: skill knows no job title or employment status.
Myth 2: Temporary Staffing is More Expensive
While the hourly rates for temporary staff might appear higher than those of permanent employees, you need to account for the total cost of employment as well. With permanent employees, you have to factor in additional expenses such as benefits (healthcare, retirement plans), paid time off, sick leave, and sometimes training costs. Temporary staff generally don't receive these benefits, which can make the total cost lower for short-term projects or seasonal work.
Employing temporary staff can also reduce administrative burdens such as payroll processing, tax filings, and HR management. Temporary staffing agencies often handle these tasks, saving businesses time and money associated with HR overhead.
Myth 3: Temporary Workers Are Not Reliable
Temporary workers are every bit as reliable as their full-time counterparts, and often, they bring a unique level of dedication and flexibility to the table.
In fact, temporary workers often go above and beyond precisely because they understand the importance of making a positive impression in a limited timeframe. They're driven to prove themselves quickly, showcasing their acumen and adaptability from day one.
No two temp workers are the same, but depending on the roles they were hired for, they could very well bring multifaceted experiences from different industries and workplaces. This versatility can inject fresh perspectives and innovative solutions into your projects, thereby improving your productivity and creativity.
Myth 4: Temporary Work is “Killing” The Full-Time Job Model
The predictions of dramatic growth in part-time and temporary jobs are largely accompanied by sensationalized accounts of corporate downsizing and warnings that traditional jobs are headed for extinction. But although large-scale layoffs at giant companies like Amazon, Nike, and Google make news, recent studies indicate that those fears may be unfounded and that the traditional model of work will indeed persevere into the future.
Rather than "killing" the full-time job structure, temporary work complements it by filling gaps, supporting project-based initiatives, and providing an option for individuals to enter or re-enter the workforce. Temporary work is not about replacing full-time positions; it's about offering additional options and opportunities for both employers and workers.
For employers, temporary work offers a low-risk way to assess a candidate's fit for a permanent role before making a long-term commitment. And, for employees, temporary assignments can create beneficial capabilities, experience, and networking opportunities with potential employers.
It's not about dismantling the full-time job model but rather adapting to a precarious market, scaling up and down as needed.
Myth 5: Temporary Staffing Is Only For Short-term Needs
While temporary staffing is commonly associated with short-term projects or seasonal peaks, its utility has proven to extend far beyond immediate staffing needs.
In a Career Builder study 64% of those looking to hire temps plan to transition them into permanent roles. Several employment opportunities have opened across technology, e-commerce, retail, banking, and finance, nearly guaranteeing that temp employment transforms into a sustainable, long-term strategy.
And, as we have seen, temporary employment represents an extensive range of positions across different fields, many of which are not tied to seasonal ups and downs at all. Whether it's implementing a new technology, launching a marketing campaign, or conducting research, you can call upon temporary staff or contractors to bring their expert knowledge and experience to the table on an ad-hoc basis.
Myth 6: Temporary Staffing is Only For Large Corporations
Temporary staffing isn't exclusively tailored for large corporations; it's a versatile resource accessible to businesses of all sizes.
Whether you're running a small startup or managing a family-owned business, temporary staffing offers a strategic solution to meet your fluctuating workforce needs. Imagine you're a local cafe owner gearing up for a bustling summer season. Temporary staffing allows you to effortlessly scale your team to accommodate the influx of customers without the burden of permanent hires.
Similarly, if you're a boutique design firm taking on a short-term project, temporary staffing provides access to specialized talent without the long-term commitment. So, it’s best to dispel the notion that temporary staffing is reserved solely for corporate giants. It's a dynamic tool that empowers businesses of all sizes to adapt, grow, and succeed in today’s reality.
Conclusion
With sweeping changes in the world, it has become the norm for professionals to navigate through multiple companies over their careers. Even industries once known for steadfast loyalty to employees are witnessing this shift. This transformation has altered the mindset of countless workers. Instead of seeking out permanent positions, many now opt for the fluidity and flexibility of temporary or contract work. They're building their careers on their terms, embracing the unpredictable yet thrilling nature of today's workforce.
For growing companies, they acquire the talent they need at a given moment, and for employees, they’re able to pick up powerful new points of expertise that they can take with them to their next gig. As a contract employee, having an expanded toolkit developed by working for innovative businesses makes you a more significant asset to the business where you decide to work next.
True flexibility will require a new mindset.
Temporary staffing supports employers — regardless of their size — to compete in the market over the long term, and it gives employees some choice in how flexibility is implemented in their teams, whether it’s through the project at hand, the hours worked, or the payroll structures.
Employers need to listen, set goals, and provide resources to make temporary staffing possible, whether temps need to choose flexible working that suits their needs while communicating with their agencies and colleagues to ensure that project requirements are met.
In most cases, the staffing agency provides the much-needed scaffolding — matching workers to suitable positions, taking care of payroll and shift scheduling, and handling taxes and compliance. All employers and employees need to do is organize their work around it.
In today's world, technology actually accomplishes many of these tasks, supported by the wide range of products on the market.
For example, Workstaff offers a suite of tools that let employers optimize their staffing levels according to their needs while doing the same for temporary workers. Their software lets businesses manage flexible and temp staff at lightning speed, saving them hours in planning, scheduling, and executing. Essentially, you can promptly know who’s available to work by publishing shifts to your entire bank of staff or a select few, depending on your needs.
Workstaff’s Time Tracking App maximizes your team's productivity, as temps can clock in and out from their mobile phones, while pre-filled timesheets and accurate time tracking ensure that payroll is always spot-on. You can even use features like geo-location and in-person QR code scanning to improve trust.
The best part is that its payroll features automatically compile approved time entries and comprehensive remuneration details for workers assigned to shifts. Workstaff keeps you informed of any inconsistencies or missing data in your pay runs, allowing you to take immediate action.
With a generous free tier and feature-packed paid plans that include advanced productivity tools, Workstaff has something for everyone. Contact us today to get started.
