You might have heard a lot about the temporary workforce lately. It’s not just your perception that this group of workers is growing. There’s a shift in Canada towards temporary workers, with temp work growing more than three times faster than the pace of permanent employment.
Why the shift? Contract workers offer employers myriad advantages that can make them more competitive and more profitable, which is critical to success. Business owners are coming to realize just how much they can benefit from hiring temp workers.
If you’re looking to improve your company, make hiring temporary workers part of your core business strategy in 2016. Here are the benefits you’ll reap by doing so.
Temporary workers offer employers more adaptability in a bumpy economy. Being able to bring on more workers or scale back the workforce to respond to the ebbs and flows of demand is highly desirable to business owners. They are able to easily adjust to changes in workload and the economy whenever needed, without having to commit to payroll costs or having to lay off loyal employees.
2. Gaining Specialized Skills
Companies may not have all of the specialized skills that they need in house. They might not possess the required talents internally for special projects or new ventures, leaving them with a skills gap. Temporary workers aren’t low-level admin-type workers. They are highly skilled, experienced professionals with expertise in their industries. And they can bring valuable skills to their temporary jobs, by completing special projects and supporting permanent workers in their roles.
3. Filling Short-Term and Long-Term Absences
Temp workers can offer you the support you need on either a short-term or long-term basis. Instead of having to deal with reduced productivity and overworked employees when someone calls in sick, leaves your employ suddenly, or must be out due to an emergency, you can bring in temp workers in a pinch to ensure optimal productivity until you find a more permanent solution.
In addition, during times of extended leave, such as maternity or medical leave, sabbatical, or military duty, temporary workers can be a valuable resource. They offer the convenience of a smooth transition without the disruption of business activities.
4. Reduce Overhead Costs
Companies must reduce their overhead in order to increase profitability. Temp workers can be extremely cost effective in this regard. The staffing agency will be responsible for undertaking the recruitment, screening, testing, and hiring of these workers, so you can reduce your recruiting and hiring costs. Staffing agencies also ensure temps are trained for the job, so you can reduce your training costs. And as the staffing firms are the ones handling payroll, you don’t have to worry about paying taxes, unemployment, WSIB, benefits, or other payroll expenses. Generally, you only pay for the hours worked.
5. Try before You Buy
It’s a common story that every employer has faced: you spend weeks, if not months, on the hiring process to find a new employee, only to realize, after training, that it’s not the right fit, leading to high employee turnover. And you have to restart the hiring process all over again. Temp work offers employers the opportunity to evaluate the new workers in action, without the financial commitment of a permanent job offer. It also offers the workers the chance to evaluate if the company and the job is right for them as well. This can lead to more successful, long-term hires.
After analyzing your business needs, you might realize that supplementing your permanent workforce with temporary workers is a strategic process that you can benefit from. Though temporary work isn’t always the solution, it can be the preferred and ideal option in many cases, leading to myriad benefits.