As a business owner, there are questions galore for you to find answers to.
Sample these: How much demand is there in the market for the product that I am selling? How am I reaching out to my potential customers? Is my marketing outreach efficient enough to help me connect with the right buyers at the right time? Is my product good enough that it will be chosen over my competitor’s offerings? But answers to all these questions are tied to one basic aspect of any business – workforce.
You don’t get to have even a head start if the people working for you are not skilled or qualified enough for the job. Whether it’s for developing a software product or marketing an application, it’s the people you hire that makes or breaks your business. So once you are in the field as a business owner, the next gradual step for you is to be an employer who knows how to get the right people on board.
There can be a while literature written about the best and most recommended practices one should follow to find the right human resources. But in this article, we are going to touch upon only one – albeit highly important – aspect to staffing. We are going to talk about whether you should go for temporary staffing or with the more conventional practice of permanent staffing. Let’s talk about how temporary staffing works in a business’ favor and what makes it rather unsuitable for companies
Why Go for Temporary Staffing
The biggest reason employers choose temporary staffing is the fact that there is a plan in place. You hire an individual for a specific project and pay accordingly. As soon as the project ends, it’s up to you whether you wish to extend contract and make this employment into a permanent one or you say goodbye. As opposed to this, your permanent employees remain on your payroll even if there is a long cooling off period when you don’t have a project that needs an individual’s service. At those times, it becomes unavoidable to lay off these employees, which has its own set of complications and paperwork hassle.
How Hiring Temporary Employees May Not Be the Right Decision for Your Business
So if you are consistent with the exercise of hiring people on a temporary basis, you are also overspending on training them on every new project and educating them on what your business is all about. Also drawing a new contract for every new person you hire involves considerable hassle and investment of time. Then there is also a case of you giving temporary employment to the same individual over and over again, which can get you into legal tangles. Of course, this can only be seen as a maneuver to find a way around paying them full time, and rather for specific projects. Permanent employees on the other hand are well acquainted with your processes and products. Apart from their own specialty, they can also contribute to your enterprise’ other aspects.
Permanent employees can also be part of the training processes whenever you hie more human resource. They are more in sync with the direction your business wants to take and can be involved in important business decisions, rather than making plans in isolation and just passing on the information to the temporary employees.
Having taken a look at the pros and cons of both types of employment, it’s safe to say that choosing one between the two depends entirely on your requirements. When you have a short term project that doesn’t impact other functions of your enterprise, temporary staffing is a good decision. For long term however, having permanent employees has great many benefits.