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Hiring temporary employees can be quite difficult and time-consuming. There are a few strategies to making the process easier, including using temp agencies. Using this method of hiring is beneficial for your company, as it helps you save time while still getting quality service from an agency in your area.
The “legal issues hiring temporary employees” is a question that many people have. The answer to the question is that there are no legal issues in hiring temporary employees via an agency.
Hiring temporary employees via a temp agency might be a good choice for firms that require seasonal or short-term labor or need to recruit quickly. It will also save you money in the long run since you won’t have to give perks like healthcare or vacation time.
Even if you use a temp agency, you’ll still need to evaluate candidates and make a hiring choice before the agency hires them. Our guide will help you through the steps of hiring a temp agency to recruit temporary staff, from determining the kind of job and choosing an agency to understanding the firm’s procedure and interviewing individuals to making your final decision.
Step 1: Figure out what kind of temporary worker you’ll need.
If your firm is contemplating hiring a temporary worker, consider the following:
- Do you need the services of a seasonal employee to assist you during a busy season?
- Do you need to fill a void while a full-time employee is on sabbatical?
- Do you have a new job but aren’t ready to hire someone full-time yet?
A temp agency may help in any of these scenarios. However, you must verify that a temporary employee does not overstaff or understaff your company. Overstaffing results in greater payroll expenditures, as well as workers who are overworked. Understaffing, on the other hand, might result in increased overtime expenditures and employee fatigue. These are crucial issues for small enterprises.
Temp-to-Hire vs. Temporary Employee
A temporary employee is hired to cover a vacancy in the workforce for a limited time, generally less than six months. A temp-to-hire employee, on the other hand, might be a good alternative if you want to recruit a full-time employee but aren’t sure you’ll be able to locate the right person soon or just want to try out the new job.
Temp agencies provide small firms with temp-to-hire personnel to trial out before committing to full-time employment. A temporary employee is normally recruited on a 90-day contract, which allows you and the worker to assess each other and determine whether you’re a suitable fit.
After the 90-day period has passed, you have the option of hiring the person full-time, continuing to use the individual as a temp, or terminating the agreement. You may have more possibilities with temp-to-hire, but be prepared to pay a conversion charge of around 20% of the employee’s income.
Step 2: Research Temp Agencies & Budget Accordingly
It’s critical that you do your homework before signing a contract with the first temp agency you come across. Many temp agencies specialize in certain sectors and occupations, so be sure the one you’re considering has the experience to send you qualified individuals.
Request a list of references. Request names of current and former firms that temp agencies have supported, just as you would when employing an employee and verifying references from previous supervisors. You can establish if the temp agency offered high-quality staff and get a taste of the experience you might anticipate by chatting with these organizations.
You should also learn how the temp agency bills so that you can budget for it. Be prepared for a rude awakening if you’ve never employed a temp or employment agency before. While the cost may seem hefty, you may save money by lowering your own expenses.
The majority of temp agencies charge a portion of the temporary employee’s hourly salary. The number may vary, although it normally falls between 20% and 50%. So, if your temporary employee earns $15 per hour, you might pay the temp agency up to $22.50 per hour. The good news is that since the temp is an employee of the agency, not your company, you don’t have to pay employment taxes or provide employee benefits.
Insider Tip: A temp agency’s percentage and charge are always adjustable, and some will go as low as 10% to attract your business.
Step 3: Discuss Job Details With Temp Agency & Understand Its Process
It’s time to work with the temp agency and its recruiters to discover the ideal applicant after you’ve determined that a temp agency is within your budget and you’ve selected one that specializes in your sector or the sort of position you need filled.
Employees are typically ready to go at certain temp companies, particularly those that specialize in administrative staff or technology. So, if you’re searching for a general office administrator, you may be able to begin interviewing individuals the day after you sign up. You may need to use the temp agency’s recruiter to find candidates for more specialized tasks.
The recruiter from the temp agency will speak with you about the job’s responsibilities. Prepare to provide extensive information on the job, the culture, your firm, and the other workers with whom this individual will interact while working for you. They’ll utilize this information to create a visually appealing job ad. While you can do it yourself, recruiters are specialists at writing job advertising that include the correct keywords to help you find the top prospects. They also have the tools they need to discover new workers and persuade them to work with you.
Recruiters will communicate with applicants initially after receiving applications. They will also administer a skills exam to check that candidates meet the job’s criteria. For example, if you need to recruit a bookkeeper on a temporary basis to cover an extended leave of absence, the temp agency may provide an Excel test and an accounting best practices examination to candidates. When you eventually see people to interview, the temp agency will ensure that those persons are capable of doing the work.
When you’re talking to the recruiter about the job, inquire about how many individuals they’ll send you. That way, you’ll be able to arrange interviews. While the recruiter will conduct initial interviews, you will be working with this individual, therefore you should have at least a thirty-minute video call or in-person interview with them to ensure that they are a good match for your corporate culture.
Insider Tip: If the temp agency sends you unqualified individuals on a regular basis and does not make your life simpler, it is not performing its job.
Step 4: Conduct an interview with the applicants
At least three job searchers should be sent to you by the temp agency. Some will deliver them all at once so you may analyze them all at once. You are under no duty to communicate with them, and you should notify them if you believe the recruiter has missed the target. They won’t be able to assist you until you are open and honest with them.
Notify the recruiter when you get a candidate you wish to interview. They will arrange for you to have an interview at a time that is suitable for you. Always interview at least three applicants for a job—never settle for the first or allow a recruiter to pressure you into hiring someone.
Ask applicants structured questions throughout each interview so you can assess their responses and decide which prospect is the greatest match. While the temp agency will assess candidates’ abilities, ask situational questions that are particular to your company. Consider utilizing real-life scenarios to assess how a candidate might respond to a situation you’ve faced.
Get a sense of the person’s communication style and consider how they’ll fit within your company. Even if they’re only around for a short time, you still want them to blend in so that everyone can perform their responsibilities efficiently.
Choosing a Candidate (Step 5)
Give the recruiter your input once you’ve interviewed at least three candidates. If none of them catch your eye, request that the temp agency give you more. If you do identify one outstanding prospect, let the recruiter know who it is. They’ll start the process of integrating that employee into your firm.
Pay careful attention to how the temporary employee does their job after they begin working for your organization. If you’re not happy with their work, notify the temp agency right away. Because the worker is its employee, not yours, it must take action and rectify any issues. Many temp agencies will also provide you a 30- to 90-day grace period during which you may inform them the employee isn’t a good match and they will replace them with someone else.
Getting to this level on your own might take up to 50 days, depending on the job you need to complete. Using a temp agency can cut that period in half, and if the temp agency has a person on standby, it might be as little as one week.
Pros & Cons of Hiring Through a Temp Agency
By reducing the time and resources spent on publishing a job ad, screening applications, and vetting individuals, using a temp agency may save your organization money. Because they have a pool of applicants on hand and the ability to identify competent workers rapidly, temp agencies can handle all of that for you more swiftly.
Think about working as a freelancer or an independent contractor.
Instead than employing a temporary employee via a temp agency, you can consider hiring a freelancer or independent contractor, depending on your requirements. Independent contractors are not employees of your firm and work with you on a project basis. An independent contractor, like a temp agency, might save you money on overhead since you don’t have to pay employment taxes and benefits.
Keep in mind that directing the independent contractor’s daily activities or crossing any other boundary that would make them an employee might result in the independent contractor being misclassified and facing significant fines and penalties. Consider Upwork, a freelancing site where you can browse thousands of independent contractors eager to work, to help you manage this and discover the ideal freelancer.
Conclusion
A temp agency might be the answer for your small company if you need to fill a temporary job or cover a staffing gap. With its assistance, you can speed up the recruiting process, lower your overhead, and swiftly locate the best qualified applicant. Temp agencies that specialize in your business will almost certainly be able to quickly find you the suitable employee.
You can hire temporary employees in a variety of ways, but one way is to use a temp agency. To find out how much it will cost, follow these 5 steps. Reference: how much does it cost to hire a temporary employee.
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