Hiring temporary employees? Here’s what to consider
Are you considering hiring temporary staff? Accepting an employee on a temporary basis is not only helpful in a pinch, it also allows you to evaluate that person’s skills, performance, personality and general fit with your company before making an offer of employment.
If you decide to work with a recruiting/employment agency, it will often test an employee’s skills, perform background checks and verify employment history. In addition, the agency typically handles payroll expenses, withholding taxes, unemployment insurance and workers’ compensation.
In most cases, you won’t provide a benefits package for temporary staff, so these employees may cost less over the short term. However, be aware that agencies often charge commissions in addition to hourly rates and may charge a separate fee if the temporary worker is hired permanently.
If you’re considering hiring one or more temporary employees for your business, here are a few helpful suggestions:
- Know what your business needs. Start by determining what kind of tasks must get done and what specific job skills someone will need to effectively complete those tasks. Push yourself to define your business needs.
- Prepare detailed job descriptions. Your temporary worker should know precisely what’s expected of them. Document the scope of their responsibilities, payment terms and confidentiality agreements. The more definitive the details of the role, the more prepared the temporary hire will be when they begin.
- Vet your employment agency. If possible, find an employment/recruiting agency that understands your business and specializes in the kinds of staff you need. Discuss your goals and nail down all pertinent contract provisions including benefits (if any) to be paid, as well as who will make final hiring decisions, and how contracts will be terminated.
- Understand your temporary workers’ rights. While there are several rules you need to follow to avoid misclassifying contractors, temporary workers fall under many of the same laws as full-time employees. These include statutes against discrimination and harassment. So take care to provide a safe and respectful work environment for your temporary workers and develop a plan to have your current staff make them feel welcome.
- Plan early, if possible. It may be hard to predict when you’ll need temporary help in situations like a medical emergency or leave of absence. However, if your company has a busy season that requires extra hands every year, make hiring temporary workers part of your annual plan. Let agencies you’re working with know that you’ll be looking for workers during a certain period of time so they can start recruiting candidates.
- Consider repeat temporary staff. Welcome back temporary workers who do a great job. This can ease the learning curve and cut down on training time because they will already be familiar with your business and its needs.
Having a helpful temporary employment strategy can really help your business.
As always, we hope you find our tips and news for businesses valuable, and look forward to receiving your feedback. Companies focused on growth have sought the help of Insero & Co. for more than 40 years. During that time they have consistently experienced the peace of mind that comes from knowing their CPA firm takes the concept of integrity seriously. Should you have any questions, please contact us directly.