Improving Your Business Cash Flow

There's a lot of solid reasons for hiring temporary employees through a temp agency. They're cost effective, versatile, and great for filling in needed areas of your workforce. However, you may reach a point where you want to take on a temporary employee permanently. You may even hire temps with the hope you can sign someone on permanently. Here's what you should consider before doing so.

1. How Much Can a Temporary Employee Cost Over Time?

Temporary employees can represent a cost effective solution in the short term. You will only have them for the length of a project or some other defined timeframe. Problems can occur if you hire a temp and realize you've come to rely on them. You train them, onboard them, and develop a comfortable rapport with them.

That project or length of time will turn into another project, or additional time. The longer you keep someone as a temporary employee, the more you will pay for the service. After some time, the funds you pay out to the staffing agency could easily cover what you would pay to hire the temporary employee permanently, with benefits.

2. Does the Temporary Employee Fit In With Your Company Culture?

It's great to have temporary employees who do an excellent job. But, doing a good job while temporary doesn't mean the temporary employee fits in well with your company culture. If the temp isn't a natural fit with your company's goals and ways of doing business, then it's best to let the temp perform well and move on.

By contrast, if the temporary employee seems to not only perform well, but also "gets" the company culture, you should consider a permanent hire. Talent is one thing, but talent that shares your organization's vision is something worth keeping. Of course, this also means you must ascertain if your temporary employee truly wants to stay on with you.

3. Is It Necessary You Add a New Permanent Employee to Your Roster?

You can hire temporary employees for any reason. If the temp accommodates that specific need admirably, then you may feel you should keep them around. At that point, you must consider the future. Is there more, and constant, work available to justify the making the temp a permanent hire?

Remember, a good staffing agency will try to send you temp workers specifically suited to your needs. You should expect the temp to perform well. You must weigh the costs of a new hire, as well as the need of the business for a new hire.

For example, consider if you hire a temp to fill in for someone on a long vacation. The temp performs well, and now you feel you should keep him or her. When your permanent worker returns from vacation, you may find you don't have the budget or workload to sustain another person.

Even if you don't have the budget to make a permanent hire, there's no reason you shouldn't take advantage of skilled temporary workers as often as you need them. Partner with a staffing agency, like BIRK Staffing & Technical Services, that recruits workers with experience in your industry. Let the temporary employee do their job, then evaluate your ongoing staffing needs.