Temporary staffing, also widely referred to as temping, is a method of employment that is becoming more and more prevalent. It is basically the hiring process where workers or staff are hired on a temporary basis or contract – for a specific project or for a specific duration. Temporary staffing is generally an agreement between three different parties. In other words, the temporary staffing solution is provided to the client or the main company, and the payroll for the temporary workers is handled by the third-party Company or vendor.
There are two very distinct ways in which temporary staffing works. The most prevalent model on which it works is the percentage salary basis. The temping agency gets a percentage anywhere between 10% and 20%. This is besides the monthly fee that is paid to the company for each of their employees placed. To sum it up, temporary staffs are directly working for the client company but their payroll services are handled by the temping agency (third-party vendor).
Why do companies use temporary staffing?
Temporary is becoming increasingly popular among industries and businesses of different scales. It is proving to be quite useful and beneficial as well. Here are a few reasons as to why companies should opt for temporary staffing:
1. Makes the business more flexible to changes and alterations –
There is no saying that an urgent demand or need for an employee that specializes in a particular department or a workforce, wouldn’t arise. Hiring temporary staff gives the company the biggest advantage of staying flexible and versatile. In case of special projects or urgent work, or if one or more employees do not turn up but need to be replaced urgently, companies can always resort to temporary staffing. It helps them make sure that they do not end up compromising on their work.
2. Power dynamic always stays with the employer –
The thing about temporary staffing is that the control always remains with the employer. If you feel that an employee is not committed enough or is unable to deliver the expected results, you can always find a replacement for them. Also, by temporary staffing, you give the employee a fair chance to prove that he or she deserves the position or no. You can always put them on a trial period and based on their performance you can decide whether or not you want to hire them as full-time employees.
3. Businesses can save up on a lot of time and money –
One of the biggest yet most underrated advantages of temporary staffing is that it is a really economical and cost-effective method of filling in gaps or positions. Companies generally have to pay a lump sum to permanent employees and then provide them with the appropriate benefits to keep them around.
But, in the case of a temporary staffing solution, all that is eliminated. Generally, you would go through an agency that specializes in temporary staffing. This means that all the duties and responsibilities like training, checking, prepping, and paying of remuneration is the responsibility of the third-party agency.
4. Specialization –
Sometimes, projects or situations may arise where a company might need a specialized employee who can take care of those particular needs or demands. They might not have someone who specializes in that field which is why they would have to go out and look for an employee who can take care of that. This is where hiring temporary employees or temporary staffing comes in handy.
Usually, you would have to go through the entire selection process and hire a permanent employee even if it means costing you a lot more than you would have to if the employee was engaged on a temporary contract basis. With temporary staffing, you can check the criteria and then hire an employee who specializes in that particular work.
5. Avoid legal issues –
Employment laws are almost always changing and it becomes tedious to keep up with the ever-changing laws. Also, non-compliance can leave you with a heavy penalty. Businesses have their own goals and targets to focus on. However, temporary staffing and going for an agency that specializes in that means that you do not have to keep tabs on the latest employment laws. The third-party or the vendors will ensure that all the latest employment laws are complied with. This comes in handy during audits.
6. Building of connections –
Building network connections can come in handy when running a business. The goal is to expand and acquire more contacts. Hiring a staffing agency to provide you with temporary staffing solutions can not only help you find specialized employees to help you out with certain projects or specialized tasks but also help you build connections that can help the company grow or develop. Building important network connections is really important and that becomes easy with the help of professional temporary staffing agencies.
7. Overtime –
If your company is understaffed then you have to make up for the loss in productivity by paying the existing employees to work overtime. Paying the employees for overtime wages is a costly affair. Also, there are additional but less direct costs involved in the entire process that makes it a not-so-economical affair for the business.
On the other hand, opting for temporary staffing by hiring the services of a third-party vendor actually helps you cut back on a lot of these costs. Overworked employees tend to be more irritable and less productive. With temporary staffing, you can totally rid yourself of this problem.
8. Interviewing and advertising can be bypassed –
The thing about hiring by the usual process is that there are layers to it. You will need to advertise to get traction and once you get enough employees applying for the position you will have to devote time and resources to screening them and filtering through the entire list of applicants to find who is appropriate for the job. However, if you go for a temporary staffing solution, you will get the employees who specialize in that sector of the job.
Are temporary staffing agencies helpful?
In the earlier days, people would have to opt for permanent workers for a particular position or a job even if that was for a temporary period of time. This means that it would end up costing the firm a lot more. This led to the need for a staffing agency that takes care of all the temping needs of the client company. Temporary staffing agencies are extremely important and helpful these days. Let’s take a look at how:
- The moment you hire a staffing agency, you can just declare your criteria, and the staffing agency will undertake the headache of finding someone who fits that profile. The company no longer has to devote time and resources to interviewing people and reviewing applications. The staffing agency does it for them.
- Payroll services are not exactly really convenient as a process. It may sound quite elementary but there are dimensions to it. A company ideally should be focusing on achieving its daily goals and targets, rather than paying its employees. They should have a wing that takes care of it for them. With staffing agencies, the client company doesn’t have to pay the employees personally. The staffing agency takes care of that.
- Tailor-suited candidates – More often than not, a project may come up that requires a special set of skills. In situations like these, companies are better off hiring staffing agencies that can provide them with one or more employees with previous experience and adequate training in handling jobs like that. This means that the productivity of the client company never goes down and the costs to be borne are quite economical as well.
- Evolving demands – The business is ever-growing and unless the workforce has a leader or someone the rest can look up to, the business will never be able to perform the way it would want to. That is why temporary staffing through a staffing agency can really provide helpful temporary staffing solution. They can help you find the right employee for the job and then, if necessary, you can turn them into a permanent employee. This gives the client company huge leverage as to how flexible the workforce of the company can be.
What are the challenges of staffing nowadays?
Like all things, temping or Temporary staffing services also come with a few disadvantages/challenges that one must always keep in mind before opting for it.
Some temping agencies offer their services at an unbelievably low rate. This happens mostly when the company or the agency is bypassing statutory remittances or other government regulations. This means that staffing without conducting a proper background check can also drag your company into a lot of trouble.
Sometimes the temporary staff hired, is not legally permitted to work in the country or be a part of the active workforce. Hiring someone like that can drag the firm into a lot of legal consequences which could be quite costly to bear.
Billing mistakes are common as well. The temporary staff may charge you or the company with a bill that is inaccurate. This means that the companies would have to sort it out between themselves and the employee as well. This means redrafting the entire payroll for the employee or employees and it is a costly affair.
Another big challenge that most firms face today with Temporary staffing companies is misleading information regarding performance. It is not uncommon that the productivity of the company drops rapidly after temporary staffing because their productivity levels are so low that the entire process becomes counter-productive. Proper screening and testing should be conducted before temporary staffing is opted for to avoid situations like these.
The importance of Temp staffing importance in start-ups
Start-ups are companies with a budget that is not as expansive as other companies. Since it is an idea turned into reality, in most cases, the capital is not a lot. Hiring permanent employees and providing them with the benefits (as per employment laws) can be a costly affair. That is why most start-ups these days opt for Temporary staffing agencies.
This way, they can call in employees on a need-per-basis. Furthermore, since the resources are limited, by temping, start-ups can cut back on costs and can employ essential resources towards the development of ideas and the realization of the same, instead of dealing with the latest payroll regulations, tax compliances with regards to payment of salary, etc. These are taken care of by the third-party companies that provide the services in the first place.
Temping or temporary staffing is the single greatest solution to the problem of urgent hiring in the corporate sector. It is a facility that has allowed numerous companies to save up on costs and resources that otherwise would have been wasted. We have sufficiently elaborated on the topic so that the readers can make an informed decision as to whether they want to go for temporary staffing or no.