There are many situations that business managers encounter where they might need more employees on the job but they’re uncertain about actually hiring anyone on a permanent basis. It could be that you’re in a seasonal situation where demand is greater than usual, and then it will subside in a month or two. There are also situations where you might want to try out a new employee before hiring them on permanently, but you’re concerned about bringing someone on board who might not fit in, or who might not be capable of doing the work.
There are many other situations similar to these which call for hiring someone on a temporary basis, without taking them on full-time and permanently. Situations like these call for temp-to-perm staffing, which is a process that allows you to find temporary workers, bring them on board for a certain amount of time, and if you like them during that period, you can offer them full-time employment. These temporary employees usually have no guarantees, but they reach an understanding that full-time employment is contingent on their performance.
How Temp-to-Perm Staffing Works
There are occasional variations in the temp-to-hire format for securing employees, with most of the differences coming in the areas of contracts and duration of service. However, there are some basic components of the model that are generally always true. A new hire will be brought into a company as a seasonal employee or to work on a temporary basis, and this generally occurs as a result of collaboration between the company and a staffing agency. Staffing agencies are able to provide additional manpower to companies in need, cover busy times of the year, or fill a position left vacant by a departing employee.
Once the duration of the contract is complete, the temporary worker may have the option of renewing the contract, leaving the company altogether, or negotiating with the employer to have full-time status. From the standpoint of the company, they will have the same options, i.e. they can reject the employee for permanent hire, they can extend the temporary contract, or they can bring the candidate on as a full-time employee. At this point, the individual will no longer work for the staffing agency but will become a permanent employee of the company.
Advantages of Temp-to-Perm Staffing
One of the biggest advantages of temp-to-perm hiring is that it would be very easy for you to find temporary employees to fulfill short-term needs in your business. You won’t have to do any of the recruiting or searching for employees if you collaborate with a staffing agency that can provide candidates for you. If you have a good working relationship with a particular staffing agency, you can make clear to them the type of employee you’re looking for, and rely on them to supply you with viable candidates.
Another big advantage of using temp-to-perm hiring is that you can fully vet any employees before you actually offer them full-time work. This can be a huge advantage because it literally gives you a chance to conduct a trial run with any candidate before actually bringing them on board. This will also fulfill the labor need that you have right now, so you can get the work done while you’re also evaluating candidates. This can be a very useful approach for a business, because it allows you to take a hands-off approach to find good candidates, and your only responsibility will then be to evaluate them on the job.
Disadvantages of Temp-to-Perm Hiring
One of the drawbacks of temp-to-perm hiring is that you may need to keep training new candidates until you actually find one that works well in the position. Of course, this isn’t a drawback if you immediately hit on the right candidate, but chances are you will go through two or three at least before finding just the right person. Another potential drawback is that when you’re working with a staffing agency, you will not have any control over employee relationships, since you don’t actually employ the person.
They are still working for the staffing agency, and they will be still if it turns out they’re not right for you or the specific position. It can also be that the quality of work provided by temporary employees is not up to the standards. They know that if things don’t work out with your company, they’ll still have a job with the staffing agency, and can get a placement at another company shortly.
One last drawback of temporary hiring is that when you do find the right candidate, you’ll have to go through the process of converting them from a staffing agency employee to someone working full-time for your company. This generally involves some kind of conversion fee, and that could make it a more expensive process than if you were to do all the recruiting and hiring on your own.
Why It’s Good for all Parties
In a model like this, the temp-to-perm staffing situation can work to the advantage of all parties involved. For the employee, they may find a job that they really enjoy doing, and they might really like the company they’re working with. The possibility of finding full-time work with a good company can be very appealing to a temporary employee.
From the standpoint of the staffing agency, if the company takes the temporary worker on a full-time basis, they will get a “reimbursement” for finding the employee in the first place. This is usually known as a conversion fee, and it’s an accepted business practice for the staffing agency to be compensated in this way.
The employer has the option of determining whether or not an employee will be a good fit with their company. If they decide against it, they can simply move on to the next temporary employee on a trial basis. If they find that they like the work and the attitude of the temporary worker, they can offer them a full-time position.
