When to Hire a Temporary vs Full-Time Employee
It is a question that naturally occurs to each and every business owner at some point in their company’s lifespan: Do I hire a Temporary/Contract Employee or is it time to consider a Full-Time Employee for our current needs?
Unfortunately, the answer isn’t as simple as it once was.
Today’s labor economy is more transparent, more flat and more competitive than ever before.
With an increase in the amount of highly qualified professionals with Bachelors (and Masters…) degrees and several years “real work” experience under their belts currently available in the labor pool many business owners and human resource managers are taking a second look at the time tested balance of employees versus contractors. This fundamental change to the way that businesses shall be structured going forward, whereas comps previously were 70/30 percent full-time to temporary/contract workers, Daytona Employment proposes it shall be closer to 30/70 (respectively) in the future.
Temporary/Contract Employees allow a business to remain flexible, even nimble, by scaling a workforce up and down based upon how much work actually needs to get done. You may not need every seat in the company to be filled every single day. Call in a Graphic Designer when you need a new logo or some basic website design work done. Bring in some telemarketers to execute a client appointment setting campaign. As your business continues to grow and change, you will find that having specific needs that extend outside your full-time workforce’s areas of expertise, that bringing a temporary/contract specialist is often more time and cost effective solution.
Specifically here in the United States, where National Unemployment Averages are hovering around 9.5% – 12.5%, it means that a significantly higher percentage of available professionals would be interested in testing this type of “as-needed” work scheduling. A company’s annual Workforce ISN’T around for the company’s annual Holiday Party. Which isn’t all that bad really, when you consider what happened that one time, with that one guy…you know who!
If an Employer needs work done fast, spending a long recruiting cycle for a full-time employee simply doesn’t work. By the time you made it through the job posting, the resume flood, the screening, the screening, the scheduling, the screening, the interviewing, the screening, etc. etc. you have already lost forward progress. When hiring a temporary/contractor, you’ll likely move more quickly through the entire process within a matter of hours or days, not weeks.
One of the additional benefits for an Employer is that having better employees available, for shorter amounts of time and for similar/lower costs, without the extra burden of continued health benefits, workers compensation insurance, or Long-Term Care. Benefits combined it means a significant savings to the Employer’s bottom line and will help to ease already tight margins due to the Great Recession. Who knows, we might actually start making money again soon!?
Oh, and if you were worrying about that Employee you are considering “letting go” back into the available workforce…don’t. No really, Don’t.
Here’s why; If an individual is keenly aware of their own unique skill sets, their capabilities and their proficiencies with technology then that individual can perform their own specific job…any where…any time… They are now in the business of themselves (see John/Jane, Inc.) and should recognize that they don’t need to strap themselves to the same desk, same office or even the same industry to do their job. They just need to know when someone needs THEIR job done and that is willing to pay THEIR price.
And as long as a free market system exists, people with money will give it to people with time (and desired skill). Now it is just a matter of determining what amount of money will get what amount of time from these highly qualified and experienced professionals. That’s where we come in!
By working with an Employment Agency like Daytona Employment an EMPLOYER can manage this NEW FT/Temp ratio more efficiently while reducing the exposure to Workers Compensation, and both State and Federal Unemployment Taxes. By working with Daytona Employment an EMPLOYEE can still have access to benefits such as Health & Life Insurance, Dental Coverage, etc. are provided through our own Payroll Administration provider (at employee’s cost).
So back to the original question: Do I hire a Temporary/Contract Employee or is it time to consider a Full-Time Employee for our current needs?
Tags: Daytona Employment, Payroll Services, Staffing, Temporary Employees, What employers can do, Workforce Planning
This entry was posted on Monday, January 3rd, 2011 at 12:30 pm and is filed under Daytona Employment, Employer-Focused, Payroll/HR Outsourcing, Staffing & Recruiting. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.