Hiring Temporary Employees: Read This First

Rieva Lesonsky

Monday, October 15th, 2012

When your small business needs extra hands on deck during busy times, are you relying more and more on temporary employees to fill the bill? You’re not alone. NBCnews recently reported that the trend toward temporary employment is becoming a permanent feature of the U.S. economic landscape.

The number of temporary employees has increased by more than 40 percent since 2009, to about 2.53 million Americans, according to figures cited in the article, which focuses on bigger companies hiring temps, then letting them go when needed so they can operate “lean and mean.”

That system may work for major corporations (if not for the temporary employees), but how do temporary workers work out for small businesses? If you’re considering hiring temps, here are some factors to consider:

  • Cost. Carefully consider the cost of hiring temporary workers, keeping in mind that some of their wages go to the temp agency. Know the going rate for the jobs you are hiring for in your area, and consider whether bringing on a part-timer (with no benefits) might be cheaper than hiring a temp.
  • Convenience. Of course, sometimes (like when a sudden crunch hits your business) it may be worth spending extra money to have a temp agency find a qualified worker for you, handle payroll and paperwork and otherwise take hassles off your hands.
  • Training. Know how much training the position requires. Is it the type of job where a qualified temp can be shown their desk, given a computer and immediately get to work? Or will it require learning your specific systems and processes? Consider whether the time needed to get temps up to speed outweighs the convenience they offer.
  • Quality. Working with a temporary agency you trust is important. I’ve had situations where temps showed up one day and disappeared the next. When you’ve got deadlines to meet and your temps drop the ball, you may wish you had a regular employee to pick up the slack.
  • Your employees. Are your regular employees spending too much of their time training, initiating and helping struggling temps? Be careful bitterness doesn’t build if employees feel they’re putting in extra time but getting nothing in return. Relying too heavily on temps can also leave your team feeling like there’s no room for advancement at the company.
  • Your customers. If your business is relationship-focused or your customers require lots of hand-holding, putting temps in customer-facing positions can send the wrong message. An inexperienced temp who handles one key client the wrong way can cost you far more than you saved by hiring him or her.

I may sound like I’m badmouthing the temporary employee concept. Far from it—I have relied on temps many times. And I understand small business owners’ reluctance to hire full-time workers they might have to let go.

Temps can be a great way for a small business to staff up or down on an as-needed basis. But if you expect temps to be a panacea for your staffing and budget woes, you might need to look more closely at all your options.

Do you use temps in your business? How is it working out for you?

Courtesy: Small Biz Trends

About Rieva Lesonsky

Rieva Lesonsky, founder and CEO of GrowBiz Media, is a widely recognized small-business expert and author of the bestselling book Start Your Own Business. Former Editorial Director of Entrepreneur Magazine, Rieva has been meeting with, consulting to and speaking to America’s SMBs—and the big corporations that want to reach them—for over 25 years. This experience has given her an inside perspective on what entrepreneurs want, how to connect with them, and how to help them grow successful businesses. Rieva has worked with B-to-B marketers including American Express, Dell, State Farm and many others, and with organizations including ASBDC, SCORE and the SBA, to market to and educate entrepreneurs.