As an employer, it might not always be easy for you to know what is the best option between a hiring full-time employee or hiring a temporary employee. Depending on the type of business you are running or the stage you are in, the best option for you might vary.
When do you know you should hire a temp employee?
You are still in the startup phase
During your startup phase, it is very important for you to focus on saving money and remembering that cash is king. Hiring a full-time employee might cost you a lot of money considering basic wages, benefits and taxes. Plus, there are training and recruiting costs. Hiring a temp employee in this stage will allow you to save money. A staffing agency will be hiring the individual under their unemployment and worker’s compensation claims which could decrease your overall cost while giving you the time to really see if this temp employee is the right fit for your team. Before you decide to bring someone onto your team and make a large investment in time and resources, it is important to give them time to prove themselves.
The job that needs to be done does not require a full-time employee
The most successful entrepreneurs and employers are not the ones who necessarily started on a big budget, but the ones who took the time to understand how their business and money worked. Knowing your business and its different needs will allow you to make the right choices when it comes to deciding which type of employee works best for this particular role and season. Sometimes, you will realize that an employee does not need to be in the office 5 days a week from 9 to 5. Certain roles, especially when it comes to creative projects, allow you to hire temp employees who will help you complete a certain task for a limited period of time. A common mistakes employers make is failing to identify the roles that do not require a full-time employee but could be executed by a freelancer.
You are going through a rough financial stage
Every business goes through rough stages that forces them to change strategy and reconsider certain things. Sometimes, laying off some full-time employees might be the solution but keep in mind that downsizing can have a negative effect on your business’ image and on stock market prices. It is best to find alternatives that will help you keep your employees while still focusing on cutting operating costs. This is where temporary employment comes in handy. Hiring temp employees will allow you to cut back on costs and get back on your feet.
When you are unsure of the direction your business is taking
Sometimes, the vision is not clear and that is ok. The important thing is not to make any important long term decisions or investments during that period. While you are still figuring out the direction your business should take, it is bets to hire temp employees. This will give you the flexibility you need to try out different strategies until you find what works for you.
When you need additional help but cannot hire an employee full-time
If you need additional help for a project that is due, but don’t want to hire somebody full-time, a staffing agency would be able to find a contractor that has the skills and abilities you need! You could also consider hiring an intern to get the job done.
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Ann-Sophie Ovile, Writer, Short Stints