4 Ways Hiring Temporary Employees Saves Your Company Money

On average, more than three million temporary and contract employees work for America’s staffing companies per week. During the course of a year, America’s staffing companies hire more than 15 million temporary and contract employees. Why are temporary placements becoming so popular? Because hiring temporary employees saves companies time and money.

Here are four reasons why:

 

1. Improving Employee Work/Life Balance

Hiring a temporary employee to assist your permanent employees can limit the amount of overtime they work. The additional workload will eventually take a toll on their performance and increase their vulnerability to becoming burned out. By lightening their workload through the aid of temporary employees, you promote a healthier work/life balance for your employees.

 

2. Overhead Savings

Permanent, full-time employees add overhead. Payroll expenses, the cost of training, workers’ compensation, unemployment fees—the costs add up in a hurry. However, when you staff your team with temporary employees instead of hiring permanent ones, the recruiting agency you partner with shoulders the cost, providing you with significant savings on your overhead costs.

 

3. Focusing on the Business, Not on Hiring

Many small companies don’t have a dedicated HR department or hiring manager in charge of recruiting, interviewing, and hiring. If they do, sometimes they only have one person handling all the hiring responsibilities. If that person goes on vacation or becomes busy with operational tasks or key projects, hiring needs can get ignored or delayed. This can create a poor candidate experience, reflecting negatively on the company and resulting in qualified candidates looking elsewhere.

 

In other cases, managers or company owners are tasked with recruiting, interviewing, and hiring. When they are tasked with overseeing hiring, a task that they are typically responsible for, they spend less time on growing the business and completing their work.

 

Hiring a staffing agency to handle hiring needs eliminates all of these potential scenarios and can help employers focus on the business, while the staffing agency focuses on the recruiting. It’s a win-win.

4. Eliminating the Cost of Making a Bad Hire

People who don’t recruit, interview, and hire for a living, tend to rush the hiring process so that they can get back to their normal work responsibilities, which can lead to regretful hires. Hiring mistakes are very costly for employers. In fact, the Society for Human Resource Management (SHRM) estimates the cost of a bad hire to be as much as $240,000.

 

When a company hires a temporary employee, the company can work with the staffing agency to terminate or extend the relationship at any time. Employee not working out? No costly litigation or lawsuit here—the staffing firm can quickly find a replacement because they have a qualified list of candidates in the pipeline, again reducing time to find a new hire.

 

Hiring temporary employees saves time and money and is a smart business decision. These four reasons are a sample of the value temporary employees can bring to companies.

 

Are you ready to hire temporary employees to solve your staffing needs? Contact Atlantic Group today.

 

Meet the Author and Team:

 

 

Dan Soi | Partner | Atlantic Group
1281 E. Main Street, 2nd Floor | Stamford, CT 06902
Direct: 203.274.8205 | Email: dsoi@atlantic-grp.com