One of the major costs for a typical company is recruitment. Even with screening through internships, college selectivity and referrals, it can be challenging to recruit an employee that performs well on the job. Trying out candidates through a temp-agency can eliminate a large portion of this expense while achieving results within the company.
Putting a new employee on payroll often requires a significant amount of time from human resources due to the paperwork involved. Hiring an employee through a temporary agency can eliminate this hassle while allowing the parent company to directly evaluate the contractor’s skills for consideration as a permanent employee.
Specialized Skills can Fill Gaps
A lot of temp-agency employees have skills which the parent company requires but hasn’t been able to meet the demand for through normal employees. According to Business Know-How, “Temporary help agency workers are now employed in virtually every industry. Traditionally, companies sought temporary workers for lower-skilled positions. Today temporary workers increasingly include highly skilled individuals with a wide range of educational backgrounds and work experience. These individuals can tackle critical one-time projects that are limited in time and scope.”
Outsourcing Lowers Overall Cost
It is often necessary to eliminate full-time employees to meet company goals or to reduce staffing costs. Outsourcing tasks to a temp agency allows for tasks that employees would normally have to complete to be achieved at a much lower cost. In many industries, temp workers are brought in at the same point that unproductive full-time employees are asked to resign.
It has been found that many temporary workers actually outperform their full time counterparts. In fact, of the temporary workers which are hired, they often continue to perform above average in comparison to directly hired employees.