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The Benefits The Temp Labor Force Provides To Companies Today

Posted by Jeff Pelliccio on Nov 22, 2016 9:00:00 AM

In ICS insights

For small business owners, finding a qualified and efficient labor force is always an issue. Some workers are trained but unwilling to follow clear direction; others can follow direction but are untrained. The possibility of finding a labor force that is completely ready to take on any task is not the norm.

The temp labor force is becoming an advantage in the market. There are many benefits to having this type of support and that is why it is becoming more and more popular.

Cost Effective For The Bottom Line

The biggest advantage of a temp labor force is financial. Although employers have to manage overtime pay and workers’ compensation, they eliminate medical and dental costs. These are usually some of the largest costs within a business’ workforce structure. The fact that temp workers do not require these is a huge benefit. The money spent on the premiums to sustain these can be better channeled into business development and long-term growth. To counteract, some employers elevate hourly pay upon hire to compensate which is fine with temporary workers. The reality is that in the new business world, some workers are making temp work their priority career choice. They like the flexibility of hours and the idea of changing jobs to avoid boredom. Overall it creates a win-win situation for employer and employee.

Sourcing The Right Talent

Some employers enjoy using their temp labor force as a means of sourcing long-term positions. Extending a full-time, long-term contract ultimately costs money. It involves the normal pay costs along with medical and dental. It also involved maintaining that contract for a specified amount of time. What if that employee does not work out the way the employer anticipated? What if their contributions are not what was anticipated? This is where an employer is out of luck and has to maintain the full terms of the contract. If the employee was hired on a temp labor force basis, the game is changed. In this instance, the employer can use the temp hire situation as a testing period where they are assessing the worker’s performance to ensure they are truly a good fit for the position. This can save money because the employer can see exactly how the worker performs and either hire them on full-time or move them out of the organization’s work force. This trial period can sometimes be well worth the continued search for talent.

Eliminating (Or Diminishing) Training Costs

One thing that hiring creates is an inevitable training cost. Just think of hiring a new worker. There is time needed to get that person on-board, acclimated to the company, and knowledgeable about their position’s duties. If they do not work out, then that time and effort spent training them is lost. With a temp work force though, the time for training is usually drastically diminished. The employer can make it a point to target exactly what experience they need the temp worker to already possess. Most temp workers are used to stepping into a new business and hitting the ground running. They know how to bring the right skills to the right position. This is where the diminished training costs end up saving more. Just like workers’ comp and overtime, cutting back on training costs is a much-desired aspect of running a business. What business owner doesn’t want to find ways of making their business operate more efficiently?

Flexibility

The reality is that flexibility also is a huge part of hiring on a temp basis. The temp work force is one that can easily be scheduled round-the-clock. For warehouse and manufacturing businesses this is a godsend. Plus, temp workers are accustomed to working different shifts and on an as-needed basis. They are usually looking for the flexibility the job affords and build their personal lives around it. Flexibility also makes it easy for an employer to scale down or ramp up workforce based on seasonality or changes in demand. Temp workers know how demand works and employers love that. The expectations on both sides are realistic and well documented to avoid any confusion.

Having a good temp work force can be a highly effective way to managing a business. It cuts down on potentially large costs and makes a business run more efficiently. Just ask any business owner and they will likely tell you stories about how the temp work force is an integral part of their business model. 

To learn more about how the temp work force can benefit your business by diversifying your workforce and increasing output, contact ICS today.