The demand for temporary staffing services has grown exponentially ever since the entrepreneur William Russell Kelly opened the first temporary staffing agency in 1946. The temporary workers or employees are working in various job positions that were not dreamt of previously. The following merits and demerits of hiring temporary employees have been discussed for the awareness of the readers.
Merits of hiring temporary employees-
1. Enhancing business flexibility: Hiring temporary employees is giving organizations flexibility in terms of finishing off their projects and work demands at the time of emergencies without hiring permanent employees and in time of employee shortages.
2. Huge savings: The cost of hiring temporary employees or workers is much cheaper when compared with the cost of hiring permanent employees. In short-term, it is more cost efficient to hire a temporary employee for jobs that are expected to last for less than six months or lesser.
3. Covering wide industries: Temporary employees or workers are needed for every organization or industrial sector irrespective of their businesses. Temporary workers are now able to tackle critical one-time projects that are limited in time and scope.
Demerits of hiring temporary employees-
1. Cost of training: Training temporary workers or employees may invoke huge costs and when the training is completed, it is unsure whether the temporary workers or employees would do complete justice to their jobs. This may be due to their lack of professional qualifications or work experiences that need a long-term commitment for the jobs delegated on them.
2. Safety issues: Hiring temporary workers at times bring in the safety concerns related with the work. The employer may not take enough safety precautions due to the temporary commitments of the job or organizations may not have enough budgets to cater on to their safety needs. Nevertheless, studies had shown that the frequency and severity rates of on the job injuries and accidents are higher with temporary workers.
3. Legal demands: Due to the temporary nature of the jobs, majority of organizations do not follow the legal requirements or procedures needed for hiring temporary workers or employees. These may relate to employee benefits, social security or other issues pertaining to insurance, gratuity etc. In such cases, there may be frequent legal disputes or demands arising between the employer and the employee causing unnecessary production delays and recurring costs.Thus, these are some of the demerits of hiring temporary workers.