Despite a rebounding economy and renewed hope, the national unemployment rate is still around 9.7 percent. In Georgia, the unemployment rate is 10.5 percent, and April 2010 is the 29th consecutive month that the state’s rate has been higher than the national average.
Needless to say, this has created a very large labor pool. Add in the fact that more and more qualified professionals are being added to that labor pool every day due to budget cuts and layoffs, and you’ve got a lot of good people looking for work.
“More and more, people are willing to take jobs that they maybe wouldn’t have in the past, and they’re definitely willing to take less money or fewer benefits,” says Melissa Hulsey, president and CEO of Ashton Staffing. “This gives companies great opportunities to get more bang for their buck when hiring.”
Still, these skilled people are hard to find. Many of them turn to staffing firms, which means now is the time to take advantage of the people and services a quality staffing firm can offer.
Smart Business spoke with Hulsey about temporary labor, how it can benefit your organization and the common misperceptions that come with hiring “temps.”
Why is now a good time to utilize temporary labor?
The long-term cost of employment is uncertain at best. Companies are often less willing to commit to a person full time because they can’t plan long term what the total cost of that employee will be. Among other things, there are questions about the Federal Insurance Contributions Act (FICA) tax. Will it stay at 7.65 percent, or will it go up?
Temporary labor doesn’t have those concerns; there’s no commitment and you’ll know exactly what the cost is upfront. You get the staffing you need without the headaches and the hassles.
What benefits come with temporary labor?
No. 1, the company saves money. Employers have to cover taxes, unemployment, health care and workers’ compensation, just to name a few. And all of those costs are projected to go up in the near future. Temporary labor helps alleviate that, since the staffing agency is the one that takes on those costs. Also, if you’ve got a lot of employees working overtime, you can hire temps to fill in, without the added cost of overtime wages.
Temporary labor also saves you time. The staffing firm does all the interviewing, screening, skills testing and advertising. You just call up the firm, tell them what you need and they find the right person for the job.
Another benefit is increased flexibility. You can hire more people at peak times and pare your staff down when business is slower. Nowadays, you can bring in highly skilled temps to replace key positions that may have been eliminated or downsized. For instance, you can find a temporary director of HR to come in a few days a week to take care of any administrative tasks you may have.
Finally, temporary labor reduces a company’s risk. Bringing in help takes the pressure off of your full-time employees, reducing accidents and absenteeism and preventing burnout. With companies paring down and employees taking on increasing workloads, burnout has become an unfortunate trend. It’s true that your staff is your greatest cost, but it’s also your greatest asset. It makes sense to do whatever you can to protect that asset.