What are the Benefits of a Temp-to-Hire Option?

A temp-to-hire employee can be the answer to multiple different problems you may face as an employer and can be an ideal solution for an employee as well. We asked our readers to share the benefits of utilizing a temp-to-hire program. Keep reading to see if a temp-to-hire program would be beneficial to you and your company.

Eden Cheng

Eden Cheng

Eden Cheng, Co-Founder of PeopleFinderFree.

Provide Business the Ability to Scale Up or Down

In today’s age, if there’s one thing that businesses have been forced to do is to learn how to adapt and be fluid when it comes to their work environments and business processes. It is for this very reason that we have implemented a temp-to-hire policy in our business. It provides us with the right level of flexibility that we need to adjust to these new times.

One of the most important benefits it has provided us with is the opportunity to perform more detailed evaluations of potential long-term employees while they are on the job. We can carry out more in-depth evaluations rather than just settle for the basic recruitment interviews that don’t always give a fill picot of a candidate’s suitability for the job.

We can also assess not only their skills and performance, but also how they fit in with other co-workers and their ability to effectively integrate into our corporate culture. This reduces the risk of us making hiring mistakes and also helps us to avoid the costs and time wasted that come as a result of training, terminating, and compensating an employee that ends up not being a good fit for the company.

Hiring temps has provided us with the ability to either scale up or scale down our workforce as needed. For example, when it comes to dealing with special projects or seasonal demand, there are times when we need some extra hands. Since we don’t always have the resources or budget to splurge on new long-term hires, we can just get a highly qualified temporary worker as a cost-effective solution.

Hiring temps has also been very helpful when it comes to taking the pressure off our current employees and helping reduce the risk of burnout and stress in the workplace. This is because, with temp hires, our employees can clock out without worrying about their workloads piling up or having to work overtime to finish it. This helps to promote better wellbeing amongst our employees, thereby ensuring that our employee satisfaction rate remains high.

Three Main Benefits of Temp-to-Hire Option

Cheaper Labor
They aren’t full-time employees, so they don’t receive both the benefits and pay of one. It’s a good way to cut costs, and you don’t have to worry about laying them off because their job will be over once the project is over or once the season is over depending on your contract with them.

Good Way to Get Extra Hands
Managing a business is hard because of its unpredictability. Sometimes you don’t have any orders or work to do, and sometimes you are overwhelmed by work to the point that [the] majority of your employees need to [work] overtime. That’s where temp-to-hires come in. If you are experiencing an excess of work, then it might be time to bring these types of employees in. You could use the extra hands and the cheaper costs just to ensure that you can do more work without losing out on profits.

Test Potential Employees
Perhaps one of the least seen benefits of temp-to-hires is that you can make them into full-time employees once their contract is over. Seeing them as potential employees can be very beneficial. There are some temp-to-hires out there that have impressive talent and a commendable work ethic. Hiring them for their skill might be a good idea, especially if you’re looking for reliable and exceptional employees on your team.

Erik Pham

Erik Pham

Erik Pham, Dad of three, and the CEO of Health Canal.

Daivat Dholakia

Daivat Dholakia

Daivat Dholakia, Director of Operations, Force by Mojio.

Lower Costs and Better Retention

We use a temp-to-hire option because it cuts down on our recruitment costs and helps with our overall employee retention. By outsourcing recruitment, candidate screening, and first-round interviews to a staffing agency, we save a huge amount of time and resources. The agency we go through uses a rigorous vetting process to ensure that every placement meets our set of qualifications.

Even more importantly, using temp-to-hire allows us to try out staff before we bring them on as long-term employees. Hiring an employee is a huge commitment that requires paperwork, professional development commitments, and a strong sense of how you’ll move them forward within your company. With temp-to-hire, we can make informed decisions about whom we add to our team.

Easy Growth Transition

The shift is quite straightforward if you decide to offer a permanent position to a worker after the temporary term has finished. Familiarity with the process and regulations of the company is the primary benefit at this time. Making the transition of a temporary employee to a full-time position is primarily a question of paperwork, allowing your business to better manage expansion without potentially noticeable interruptions to your productivity.

Lucas Travis

Lucas Travis

Lucas Travis, Founder of Inboard Skate.

Diego Cardini

Diego Cardini

Diego Cardini, Founder, and Director at The Drum Ninja.

Save Time and Money

Temp-to-hire saves time and money compared to permanent hiring. Temp-to-hire also allows you to ensure that your next hiring is a perfect fit; it’s a great way to test a potential employee before you hire them. If the candidate doesn’t work out, a professional employment firm should be able to help you discover someone who does. Temp-to-hire recruiting increases the chances of making good hires.

Two Main Benefits of Temp-to-Hire

1. You can see the employee’s skills in action before you commit to long-term employment. This is especially useful if the individual is a fresh graduate or pivoting from another career and doesn’t have much (or any) prior experience in the industry.

2. It can prevent desperate hires during long searches. Work doesn’t stop just because you have a vacancy, and it can take a long time to find the right fit for critical or specialized positions. Using a temp-to-hire system, you can at least ensure the basic responsibilities of the position are taken care of while testing out a potential replacement.

Matt Erhard

Matt Erhard

Matt Erhard, Managing Partner at Summit Search Group. Matt Erhard has over 10 years of experience in leadership and strategic management.

Tanner Arnold

Tanner Arnold

Tanner Arnold, President, and CEO of Revelation Machinery.

Boost Morale

If your full-time staff is overburdened, bringing in extra help is always welcome. Morale can quickly deteriorate when your core team is required to endure extra shifts, work nights, and come in on weekends. No one wants to add more work to their already overburdened schedule. Employee burnout is on the rise, which may wreak havoc on the team during a hectic season.

There’s also the worker to think about. Some of these people have been unemployed for a long period, but they are resuming work as it becomes available. Someone who has been looking for a full-time job and is then offered one by a company they enjoy working for is a huge gain for everyone. It also helps to maintain a positive work environment.

Hire for Ongoing Projects Only

This work arrangement allows you insights into the working approach, domain knowledge, and skills of a particular individual. You could use the time of such assignments to understand and inspect whether or not you will want to hire the candidate eventually. Not to mention, it also offers employers to keep some hiring overheads such as insurance and health benefits down.

In a crisis like the coronavirus-led pandemic, the temp-to-hire arrangement ensures employers have the right talent to get their long-term projects ongoing while reducing costs. Then when the economic downturn recedes, companies can hire these individuals as permanent employees, provided their performance is at par with organizational demands.

Gargi Rajan

Gargi Rajan

Gargi Rajan, Head HR of Mercer | Mettl.

Carter Seuthe

Carter Seuthe

Carter Seuthe, CEO of Credit Summit.

Company Tests the Employee

Temp-to-hire is a great benefit for workers and employers alike, in my opinion. Workers get temporary employment guaranteed by contract and usually protected by a temp agency. Companies get to test out new talent and see if they need a permanent position filled and if a particular person is right for it.

The idea is that a temp worker will get experience with a team and working within a certain role and then they’ll be offered a permanent position. Even if they aren’t, they’ll still be paid for the time they work, which isn’t always the case with an internship.

Assess the Right Employee

The significant advantage of temp-to-hire recruiting is that you have a higher chance of making high-quality, strategic judgments for your company’s good. Employees determine a company’s productivity, performance, brand identity, and temp-to-hire placement, allowing businesses to make informed recruiting decisions for long-term success. It gives you time to evaluate their talents and job performance and then hire them if they’re a good fit. Instead of wasting time recruiting and screening possible employees, the staffing agency takes care of it for the company. This frees up time for the firm to focus on more vital activities. It is also less expensive to hire a temporary worker, reducing the risk of hiring full-time staff who do not perform well.

When a temporary employee is needed for a short period, we consider temp-to-hire. When one of our current employees goes on vacation or medical leave, we make a temporary recruit to pick up where they left off. In other cases, we frequently hire temporary staff, which allows them to assess applicants for months before deciding whether or not to hire them as a full-time team member. We utilize a staffing agency to connect with temp-to-hire individuals to find a good fit for the company and job, rather than wasting time and money seeking people who may be unproductive. Furthermore, as this is a brief time, the chance of turnover is reduced.

Miranda Yan

Miranda Yan

Miranda Yan is the Co-Founder of VinPit.

Henning Schwinum

Henning Schwinum

Henning Schwinum, Co-Founder, and Managing Partner at Vendux LLC.

Immediate Availability and Guaranteed Qualification

It starts with the benefits of utilizing temporary staffing. Generally speaking, the option comes with lower risk, greater flexibility, immediate availability, and guaranteed qualifications. The conversion of temp-to-hire is then often triggered by these two factors: proven capabilities and results by the employee, and ongoing need for the resource on the employer side. The benefits of the temporary assignment have simply been replaced by those that speak towards permanent employment. One piece of advice I give to every one of my interim sales leaders is to always be prepared to answer the question, “Are you interested in this position permanently?”

Removes the Guesswork from Recruiting

Temp-to-hire takes a lot of the guesswork out of the hiring process for our business. As a manager for an eCommerce company, I want to hire the right people. To do that I need to see how a person actually performs in the position and how well they fit with our company culture. It’s great if someone can write a sparkling resume or perform well in an interview, but until they’re doing the work, I don’t know what I need to know to make the right hiring decision.

Temp-to-hire also gives potential employees some time to see if they like our culture and if they can thrive if they’re hired. Temp-to-hire gives everybody involved time to figure out if it’s going to be the right fit or if it’s better to look at other options.

Todd Ramlin

Todd Ramlin

Todd Ramlin, Manager at Cable Compare.

Erin Mastopietro

Erin Mastopietro

Erin Mastopietro of Dope Dog.

Seven Advantages of Using Temp-to-Hire

1. A temp-to-hire fills in the gaps in job positions.
2. This helps the employer understand the long-term potential and capability of the employee, as well as assess the behavior, discipline, values, ethics of the employee.
3. A temp-to-hire can prevent a bad hire from happening.
4. This process can protect the organization’s time, money, and resources.
5. The burden of work on the existing staff is eased by distributing some work to the temp-to-hire.
6. It requires minimum lead time and has a frictionless onboarding process.
7. The whole process of hiring gets over in a couple of days.

Examine the Candidate with Temp-to-Hire

Temp-to-hire positions provide employers the freedom to try out new roles and people to see if they’re a suitable fit for the organization in the long run. This trial period is beneficial when a company is still deciding whether or not to hire a full-time employee to satisfy their demands.

Companies can examine potential employees firsthand using a temp-to-hire technique. This kind of hiring saves employers time, money, and the headaches that come with a terrible employee. Connecting with a reliable staffing agency is one of the greatest ways to locate temp-to-hire professionals.

Daniel Veiga

Daniel Veiga

Daniel Veiga, Founder of Danny Veiga Marketing.

Christian Velitchkov

Christian Velitchkov

Christian Velitchkov, Co-Founder of Twiz LLC.

Five Benefits of Temp-to-Hire

1. The organization can save a lot of time, money, resources, and headache from a bad hire.
2. The organization gets familiar with the talent before deciding whether to hire them full-time.
3. The organization understands the behavior, ethics, and values of the employee.
4. The talent gets acquainted with the organization and gets a taste of the organization.
5. The talent can choose whether or not he or she wants to sign full-time with the organization through such an arrangement.

This is a crowdsourced article. Contributors are not necessarily affiliated with this website and their statements do not necessarily reflect the opinion of this website, other people, businesses, or other contributors.