Advantages of temporary staff

  • Most business owners will be familiar with the feeling that they have to be expert in a range of different fields.  When it comes to some very specific tasks – technology, accounting or design tasks – it can pay to have an expert in.  Freelancers and temporary workers offer you the chance to complete short term projects which require expertise quickly and efficiently. 
  • The hiring process can be complex and time consuming.  In the case of temporary workers it can be useful to use an employment agency.  If you’re hiring because you’re going through a busy period this can make life much easier, as you’ll probably not have the time to manage the recruitment process yourself.  Obviously an agency should be expert in finding the right candidate which should also save time for you. 
  • Temporary workers do not normally fall under the same legislation as permanent, meaning that they are not entitled to standard employment benefits.  This can be useful for small firms who are not able to meet all the commitments required.  This can offer a cost saving and it also makes the hiring and firing process more efficient.

The downsides

  • Perhaps the biggest drawback for small firms when hiring temporary workers is that they will have little investment in the success of your firm.  Permanent workers, particularly in small firms, will be as keen to see their long term source of income be a success.  Temporary workers are nearly always focussed on where and when the next job is coming from.  The exception is normally in the area of expert freelancers – they make a living by offering you the best quality work and it’s equally to their advantage to put in maximum effort.
  • Hiring via an agency is great but it may mean you have absolutely no involvement in the process.  This can be a disadvantage for the smallest firms as one thing that will be crucial is hiring a worker who you can get on with.  An agency won’t be able to take this factor into account and there’s nothing like a bad working relationship to ruin your day/week/month.  Obviously it’s possible to get rid of the ‘wrong’ temporary worker but finding the right worker in the first place saves time and money!
  • When hiring a new employee there is normally a period in which you’ll need to provide some intensive training and/or micro-manage them.  With short term contracts the micro-managing period can last for the whole time they are employed by you.  This ultimately doesn’t equal much of a time saving.  With longer term workers, once the training and the settling in period is complete, you’ll be free to get on with your own work. 

The choice between hiring permanent or temporary workers will depend on a number of factors.  Seasonal highs and lows are common in many industries and temporary workers will almost certainly be essential.  Expertise gaps that require short term contracts are often best filled with freelance professionals.  For small firms building a good relationship with their employees is perhaps more crucial than in larger firms so it’s essential to be clear on the roles, opportunities and prospects when taking on temporary, freelance or permanent staff. Payroll software such as QuickBooks can be useful when taking on temporary or freelance staff.  While it may not be necessary for short term contracts if business booms with additional employees having payroll software in place may allow you to quickly turn temps to permanent employees, helping your firm to continue to grow. 

Author
Carlo Pandian is a freelance business blogger and writes about accountancy, finance and technology covering everything from tutorials on QuickBooks Online accounting software to tax tips. He loves speaking at conferences on how internet and social media can help small businesses succeed.