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Tips on Using Temporary LaborThe Advantages and Disadvantages of Using a Temp Agency
Often businesses can find themselves in need of temporary help. Using labor from a temp agency can be the solution. Here are some pros and cons of using temp labor.
Labor shortages can be a small business owner’s worst nightmare. Often such a shortage can hit at the worst time. Any number of reasons can cause such problems. You land a new contract with an important client but the contract is going to stretch your existing resources to the limit. Such a contract might make it hard to keep up with existing business. How do you handle such a situation? Using temporary labor supplied by a service may or may not be the answer. The Advantages of Temporay EmployeesTo determine whether using temporary labor for your business is feasible you need to understand what the advantages and disadvantages are. Let’s start with the advantages. To start with you should try to find an agency that you think you can work with. The right agency can provide you with some real advantages depending on your business. Many agencies actually specialize in providing employees to certain industries. An example would be if you need an accountant. There are agencies that provide nothing but accountants. Many handle only workers for manual labor. Most likely you can find an agency suited to your needs. The Agency Does the Work for YouWhen you use temporary labor you should be getting an employee that has already been screened and interviewed by the temp agency. If you work closely with the same agency they should be able to get a feel for what type of employees you are looking for. This also saves you time having to go through the normal hiring process. Now you might ask yourself what if you are not satisfied with the employee. Well the solution to that is simple. Ask them to send out someone else. You are not required to use anyone they send you. Other Advantages of Temporary LaborThere are a couple of other advantages to using a temp agency. One is the ability to let go the employee when you no longer need them. All you have to do is make a call and the agency will handle the employee. The other advantage is the ease with which payroll is handled. That’s because the agency handles the employee’s payroll. They deal with all the taxes as well as the benefits the employee might be receiving. All you have to do is pay the bill. The Downside to Using Temporay LaborSo what is the downside of hiring temporary employees? The main problem actually comes from what happens when you find an employee you’d like to keep. Most temp agencies require their workers to sign a contract. Most are either three or six months in duration. The contract keeps the worker from jumping ship if they are offered a job. This gives the company that is using the employee usually only two choices. One is to buy out the contract. This can often cost the company thousands of dollars. It's how the agency is able to still make its money on the worker. The other option is to keep the worker on until the employee’s contract runs out. Either way your business will pay a price. It’s up to you to decide whether the employee is worth the price. Do Your HomeworkHiring temporary labor may or may not be right for your company. But it can often be a good way to handle short term labor needs. You should of course do your homework first. Contacting agencies in your area is often the best way to accomplish this. The results you can judge for yourself.
The copyright of the article Tips on Using Temporary Labor in Human Resources Management is owned by Cash Justin Miller. Permission to republish Tips on Using Temporary Labor in print or online must be granted by the author in writing.
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