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November 1, 2007
Use of temporary employees has been growing much faster than the U.S. economy as a whole. The reason is flexibility, for both businesses and workers. Temporary employees are quickly and easily available through some 6,000 staffing companies nationwide. Workers are available for daily, seasonal or cyclical assignments, just about any time you need them.
If you have work that needs doing but are concerned about layering in additional permanent overhead, temps can be a solution to your business needs. Look for temps yourself via online job sites, or tap the services of local temp firms. Using agencies to fill positions frees you of the cumbersome process of finding, hiring and properly paying temp workers. If you offer benefits to your full-time employees, such as a retirement plan or health insurance, outside staffing firms can help you comply with all the rules so temps don't have to be covered under your plan.
According to the American Staffing Association, the average temp or contract employee earns about $12 per hour. Most staffing companies offer health insurance as well as vacation and holiday pay, and many offer retirement plans as well, so your business won't have to.
If you hire temps through an outside staffing firm, you will of course pay a fee for their services. But you will save on payroll and fringe-benefit costs, so it can still be less costly to your business. And using temps rather than independent contractors can help in several ways. First, you don't have to worry that independent contractors might later be classified as employees, thus costing you a bundle in back payroll taxes, and perhaps penalties as well. Plus temps might actually cost less than independent contractors, and you can directly supervise their work.
Temps are available at all levels, from day workers to CEO. In fact, fastest growing segment of the temporary help field is in filling management positions. There are two main types of temp job placements:
• Temporary or contract, where you add a temp employee on an interim basis.
• Temp-to-hire, where you place an employee on a wait-see basis until you're sure a spike in business will sustain itself, or you just want to be sure you have the right person.
If you have highly specialized needs, look for a staffing firm that specializes in your industry or type of operation. The American Staffing Association (www.americanstaffing.net) Web site lets you search for staffing firms that are ASA members. Click the "Staffing Clients" tab at the top of the page and search for a firm in your area by state or ZIP code. You'll also be asked what type of service you want and for what occupational category. For best results, interview several for the best fit.
If your temporary need is specifically in the financial or accounting area, consider Accountemps to fill you needs. Visit www.accountemps.com for details.
Daniel Kehrer is editor of Business.com and Work.com.
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