Manage HR Magazine

Abner Lawrence

Temporary Staffing has various key advantages, such as a reduction in costs, reduced hiring risks, and higher affordability.

Currently, there are roughly 5 million more jobs available than workers (Bureau of Labor Statistics). In order to address this enduring labor shortage, employers have turned to temporary staffing agencies.

Employment in temporary staffing has increased by 343,000 people year-over-year. There is no doubt that temporary staffing companies provide valuable support to companies with this much growth.

The following are four foundational benefits of working with a temporary staffing agency: flexibility, cost-effectiveness, access to a larger talent pool, and hiring options:

Adaptability: Managing fluctuations in the workforce is easy with temporary staffing. If organizations need extra staff for a special project or busy season, or if an employee is sick or on leave, a staffing agency can help. Staffing agencies usually have a pool of temporary workers ready to step in at a moment's notice. Companies get help when they need it. When organizations no longer require support, the same applies. The workforce will be more efficient when the organization can cancel temporary staffing quickly, sometimes within a day's notice, when the temporary staffing needs end.

Having access to a larger talent pool: With a larger talent pool, organizations will have more options for on-call staffing. Recruitment agencies utilize a variety of resources to source top talent, including job boards, resume databases, social media communities, school partnerships, referrals, and applicant tracking systems. Recruiters carefully screen, interview, and hire the best candidates. Companies can also hire temporary employees who match their company's specific skillset and culture through staffing agencies.

A cost-effective solution: The use of temporary staffing is a cost-effective way to meet short-term staffing needs. It is only the organization's responsibility to pay the employee for hours he or she works. The cost of hiring an employee includes the employee's wages plus federal and state unemployment taxes, FICA/Medicare, workers' compensation insurance, employee benefits, and training.

Temp-to-Hire and Contract-to-Hire options available: Most companies treat a temporary employee as if they were on a "working interview," with a full-time position potentially available on the other side of the assignment or contract. The company may extend an offer to the employee if they work well within the company. The staffing agency will replace the temporary employee if they aren't right for the role. It is very costly to make hiring mistakes. According to the US Department of Labor, bad hires can cost up to 30 percent of an employee's first year's wages. When companies hire temporary staff, they don't have to worry about expensive recruitment or overhead costs because they can work with several candidates before making a decision.