Job markets are improving post-recession, but slowly. We remain cautious when it comes to spending, but for many businesses, even slight growth spurs the need for additional workforce. On the one hand, adding staff may be required to fulfil contracts or orders or manage new relationships and agreements. But on the other hand, hiring staff is costly as a well as a major undertaking and responsibility.
Taking the leap in making a full-time hire, understanding the commitment, time and resources that this will require, is enough to keep any manager or business owner awake at night. The silver lining of this delicate situation is that, unlike other areas of business, when it comes to staffing, sometimes a temporary “band-aid” solution is actually best.
It is not always on the tip of the tongue for HR or management, but hiring temporary workers makes a great deal of sense, and the trend is slowly turning. Temporary work can serve as an effective way to bridge the gap in uncertain economic times for both employees and employers.
Some recent statistics reveal that temporary work plays a significant role in the Canadian economy, and is becoming a viable business solution for many.
One of the fastest-growing job opportunities in Canada in the past year has been through temporary or contract work. Statistics Canada reported a 13% jump in temporary hires from March 2009 to March 2010. Career Builder reported that roughly 27% of employers planned to hire contract or temporary workers in the fourth fiscal quarter of 2010 and 24% were in the process of transitioning some of those employees into permanent positions.
Temporary positions are an extremely viable business solution in our recovering economy for businesses that do not have the ability to make a permanent hire commitment, but still need to keep the wheels of their business turning.
I always explain it in terms of thinking of temporary staff as spokes of a company. While upper-level staff are the nucleus, temporary staff are the spokes that move in and out of the picture as business levels shift.
Hiring temporary staff affords employers the opportunity to avoid the financial commitment of a permanent hire (payroll, benefits, exit interviews and severance packages). It is a cost-effective solution as most temporary workers are contracted out through and therefore technically an employee of a staffing agency. This means that the agency handles the employee on boarding, payroll processing, government remittances, WCB and T4 processing. Talk about a reduced headache.
Adopting temporary workers as a solution also grants employers the ability to scale up workforce on an “as needed” basis and strategically manage the fluctuations in business volumes. Temporary workers offer diverse skill sets from customer service to light industrial and warehouse work to administration, IT to project management, accounting and finance, human resources and marketing and middle-management roles. In many cases temporary employment also provides a buffer to a permanent hiring decision. It provides the opportunity to preview an employee, in terms of their fit, performance and qualifications for a position.
The benefits to hiring temporary staff not only suit the employer, but also meet the needs of today’s workforce. As in the case of the employer, for the temporary worker, a job, no matter how short, serves as a bridge to full-time employment. In fact there is often large potential for temporary work to eventually turn into a full-time position. Temporary workers get a unique chance to “try before you buy” if entering a new field, position or company, allowing them to see what it might be like to work there full time.
Temporary work also suits a variety of demographics in terms of age and life situation. In fact, it is becoming a popular option for retirees that have the skill set and experience and are not quite ready or in a position to stop working. It is also attractive to women looking to ease back into work after having a child or work for shorter periods in order to focus on raising a family.
Additionally, following the heavy layoffs during the recession, temporary work has attracted a new swarm of highly qualified and eager workers in a huge range of professions who have lost their job and cannot find full time work.
For many, temporary work allows a breakaway from routine and provides variety. If new to a city or returning to the workforce, it is a great way for individuals to learn of the employment landscape and allows maximum flexibility.
Considering the tremendous benefit to both businesses and employees themselves, it is no wonder that temporary staffing is rising in popularity.