Big and small companies alike hire temporary employees. Among economic reasons and work availability, there are others like time and space. Temporary employees sometimes seem like the perfect solution. But temporary hire services might not always prove more efficient than direct hire services. Though temporary hires are cheaper, permanent hires will prove better in the long run.
There are pros in hiring a temporary employee. Like, you can hire a couple of employees based the work flow you have. Once the work flow reduces, you no longer have to keep them on the pay roll. Similarly, your company does not have to provide benefits for a temporary employee. Medical benefits and paid vacations are some areas where the company can save. A call to whether permanently employ that person does not have to be made immediately. If you are satisfied with the performance, you can always offer a permanent position.
But with these, come some cons too. Usually, companies hire temporary services through a temp agency. The screening process that the agency employs might be very different from yours. The temporary hires might not be as qualified or efficient in a particular field as you want. Some companies usually like to take inexperienced people and train them according to the needs of the company. If that is what your company is looking to do, then start looking for direct hire services.
Being a temporary employee doesn’t seem all that beneficial either. If you are a temporary employee, you will receive very little benefits if not none. Health insurance, retirement funds and paid vacations cannot be claimed.
The lack of benefits is not the only turn off. The salary usually paid to temp hires are low. The salary paid to a permanent hire performing the same services as a temp hire will be considerably higher.
Temporary employment is not as stable as permanent employment. Risk of termination and unemployment is much higher. If a company starts cutting down employees, the temps are the first ones to go. These are some of the reasons why temporary hires leave their position as soon as they get a permanent position.