There is always a type of lethargic view on temporary jobs with majority of companies often viewing temporary workers or employees as less important than full time employees. However, during recent years more and more organizations are turning to short-term associates or workers for carrying on their business activities. According to the American Staffing Association (ASA), about 2.91 million people are employed by staffing agencies everyday and U.S. staffing agencies or firms hire about 11.5 million temporary and contract employees over the course of a year.
It is estimated that about half of the employees being recruited by the staffing agency are for temporary positions. Hiring temporary workers through staffing agencies is saving their client companies’ time and money. The staffing agencies providing temporary staffing services not only takes care of unemployment benefits and workers compensation of the concerned temporary employee/worker but also conducts background checks, drug tests and approved reference checks of the employee before placing them at their client organizations’ work places. The temporary jobs at times may turn into a full time position in case the employer is fully satisfied with the temp workers/employees’ performances.
The temporary staffing agencies incur huge business expenses in the form of payroll that they are required to pay to the temporary workers or employees in the form of salaries or wages. However, they minimize these expenses by factoring their invoices through Invoice Factoring Companies who help these agencies in turning their net 30, 45 or 60 days invoices into immediate cash. The factoring proposition is helping temporary staffing agencies in expanding their business operations without feeling the cash crunch. By choosing the right invoice factoring company, the temporary staffing agencies are having the following benefits:
- Invoice factoring alleviates pressure on meeting payroll for temporary staffed employees.
- Opens up cash resources for doing other business activities
- The concerned staffing agency is not required to borrow and create debt for the company or agency.
The recent health care law could prove to be a boon for temporary staffing agencies as employers may outsource jobs to escape from the complex requirements of medical insurance. The law is also prompting larger organizations to use temporary staffing agencies. By requiring the employer to provide coverage only for those who put in at least thirty hours a week, the health care act is creating incentive for companies to hire more temporary workers/employees instead of permanent employees or workers.