Should you hire temp workers for your small business?

There are many reasons why you might consider hiring temp workers, including the smaller impact on your budget, the reduced risk of hiring the wrong person and the benefit of trying the employees out before making a long-term commitment. Many larger institutions use temporary workers when there’s a big project with a short deadline. Rather than hire another service to complete the work, temporary employees perform their work in house and with greater oversight.

But what about small businesses or startups? Can these types of enterprises benefit from hiring temp employees?

temp talent

Temporary workers could help your business.

Great talent, low prices
One of the primary reasons you might consider hiring temp workers is that you can find top quality talent at a lower price than if you had hired them full time. According to Kerry Hannon, writing for Forbes magazine, many temporary workers are people who were downsized when the economy took a downturn. As such, you can utilize these highly qualified workers without having to pay for health care or other benefits. This is an ideal situation if your business is focused on a short term project. Then, if you feel like you’ll continue to need the employee’s services, you can recruit them for a full time position.

Start small, all around
Starting a new business is risky. There are many pitfalls into which a new business owner might fall. Many of these issues can be mitigated with a solid business plan, but others are unexpected – and these can cost a lot of money. You can minimize risk by keeping your staff small in the beginning. Once you’ve formed your core team, find out how much extra work there will be. From there, you can hire temporary workers to fill in talent gaps until you’re ready to expand. A talent management service could help you make these kinds of decisions.

After you hire a temp worker, don’t just toss them into the deep end to see if they sink or swim. American Express recommended starting the employee out with a small task or project. Give them guidance from one of your senior employees. After he or she has successfully completed this task, you can safely move him or her up to something bigger. Even then, try to have a regular staffer available to answer questions and provide guidance.

Know the requirements
Having a temp worker is not the same as hiring an intern. While temp workers do come with lower costs than your average worker, they won’t work for free. Remember that temp workers are usually people looking for full time work or for a way to make money between jobs. According to QuickBooks, employer requirements will vary from one state to the next. Typically, the business owner will be responsible for paying a reasonable wage, medicare, social security and worker’s compensation.

Hiring temp staff can have a number of great benefits for small businesses. Research the specific requirements for your state and decide if they are a good fit for your enterprise.

Would you hire temp workers? Let us know by tweeting @MSIGTS.