After the recession, you bring temps or full-time employees?
Human Capital Solutions LLC
March 4th, 2021
"Temporary workers are a growing part of American business. According to statistics there are around 17 million people that work for companies as temps"
While the last recession due to Covid-19 and resulting economic uncertainty initially significantly increased the ranks of temporary workers.
There are many reasons why it is wise to hire a temp instead of a full-time employee. Here are some of the reasons why:
The flexibility to keep staffing levels optimal as your company needs change. Temps help reduce overall staffing costs, because their presence can keep your regular employees fully productive, but not overworked.
Staffing agencies can quickly help your company to adjust more easily to workload fluctuations and provide qualified temporary staff.
Here are some of the common reasons:
Unexpected production demands: New projects, seasonal or peak periods, employee shortages
Employee absences: maternity leave, vacation, illness, or sudden departure.
In some cases, the cost of bringing temp workers is often cheaper than the cost of hiring full-time employees with benefits. In the short term, it is generally more cost-efficient to bring temps. There’s a rule of thumb that the cost is typically 1.25 to 1.4 times the salary, depending on certain variables. So, if you pay someone a salary of $35,000, your actual costs likely will range from $43,750 to $49,000. Some added employment costs are mandatory, while others are a little harder to pin down.
When you work with an staffing agency, they take the responsibility of the legal & financial burden of recruiting, screening, testing, hiring workers, payroll expenses, paperwork, taxes, unemployment and workers’ compensation insurance; and any employee benefits that they provide.