4 Benefits of Hiring Temporary Workers and Converting them to Permanent Employees
Turnover rates across all industries are roughly 12-15%, with a stronger percentage in specific industries – warehouse companies are looking at a striking 46% turnover. While stats like this can be concerning, even discouraging, employers are not left without tangible steps to support their business. If a labor shortage is your current struggle and pain point, hiring and converting temporary workers may be in your best interest.
4 Benefits of Hiring & Converting Temporary Workers
Hiring Temporary Workers
1. Acquire resourceful professionals in the labor shortage.
It’s a challenge to find people in today’s market, but if you start by employing temporary workers, you can more easily and quickly add to your staff. In fact, some 17 million people work in a temporary capacity (temps, contract workers, consultants, seasonal works). Finding people for your open positions is half the battle, but a staffing agency has an entire pool of candidates that are ready to get their foot in the door in your industry.
Additionally, a staffing agency will prescreen and interview candidates before sending them to your company. As they do their due diligence, they help weed out the candidates who would not be the right fit for your roles, and in turn, provide professionals who have the aptitude and experience you are looking for. Employing the help of an agency is like having a staffing concierge to support your business, supplying the specific help you need just at the right time.
2. Reduce cost.
Hiring an employee is a significant commitment for you and your business. You want to make sure an employee is a right fit before you give them the keys to the car of full-time employment. Instead of having to pay for benefits and onboarding costs from the beginning, you can delay expenses and test out the dynamic first. If, after 30 days or so, you find the employee is a good fit, you can more confidently offer them a permanent position. If not, you have saved your company time and money.
Not only does it help control costs for hiring, but temporary workers also offer support to your current team. Part of the struggle with turnover is the burnout rate. A Deloitte survey discovered that 77% of respondents experiencing burnout in their current job, and 70% feel like their company is not doing enough to minimize the struggle. However, if your team has sufficient support to complete their work in a timely, none-stressful environment, you are providing better stability for your business and minimizing the cost of long-term employees leaving as well.
Converting Temporary Workers
The benefits of hiring temporary works are fairly straightforward. But another key aspect of this whole process is planning on converting those same temporary workers to permanent employees. Why is this an important piece of the labor shortage puzzle?
3. Meet Employee Demands
Many temporary employees are looking for permanent positions – they don’t want to be a temp forever. When a temp becomes a permanent employee, they receive the benefits, flexibility, and pay that come with that promotion. Those are strong incentives to want to stay with a company for the long-haul! Full-time employees “have proverbial skin in the game and are more likely to stay.”
If 67% of employees consider benefits a key aspect to their jobs, offering these to them sooner rather than later will keep them engaged in their roles, which leads into the next and final point.
4. Strengthen Retention
The benefits of converting temporary workers are that you have allowed sufficient time to determine the next steps for temporary employee. As mentioned above, allowing for a trial run with a temporary position allows you to see if the workers fit into your business structure without a larger initial outlay of capital required for full-time employees. But the key is to not wait too long.
Transitioning your temps to full-time strengthens retention as it shows you value their efforts and want to keep them around. The sooner you can demonstrate that, the more engaged they will be in their role, and the stronger reputation you will build for engaging future employees. And you will begin to shrink your labor shortage conundrum.
Further still, if you hire temporary workers fulltime, you beat out your competing companies and the offers they may be making to your temporary staff – you are staying ahead of the game when it comes to the war for talent. The longer employees stay temporary, the more likely they will be to consider other employment offers or start their own search for a new job. But the sooner you convert, the stronger your workforce becomes.
As you look to the best solutions for your labor shortage struggles, hiring and then converting temporary workers gives you an actionable plan to find the right hires for your business – for your needs for today and your success for the future.
Looking for support in finding temporary workers? Atlas Staffing’s contingent workforce solutions has options and opportunities that are sure to benefit your business.