Temporary Workers: Reasons For Hiring Demand And Supply

Temporary Workers: Reasons For Hiring Demand And Supply

One of the main keys in creating professional Human Resources (HR) lies in the workforce recruitment process. Selection, training and development of prospective workers certainly requires extra energy for every organization or company. Finding a qualified professional workforce is not an easy thing. For this reason, a temporary employment agency is needed to make it easier. As is the case with organizations and companies throughout the Seattle Metro area, Greater Northwest, and the state. This Seattle temp agencies is one of the important processes in assisting the recruitment of temporary workers for any organization or company in the country.

What it is: Temporary workers (temporary workers) are those who are employed for a limited period of time. The company contracts them for a fixed term or on a project or task basis.

Companies usually use temporary employment contracts to provide legal protection when hiring short-term employees and explain that the position is only temporary. Such contracts allow the company to avoid legal obligations and other negative consequences during their employment.

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Businesses may hire temporary workers as new permanent employees when they meet management’s expectations. Demonstrating a good work ethic, learning quickly, and regularly helping out are the keys to getting such an offer.

The use of temporary workers tends to increase at the earliest signs of economic recovery and decline at the earliest signs of economic weakness. Businesses usually hire them to avoid the cost of hiring permanent employees. Demand will increase/decrease especially at turning points in the economic cycle when companies doubt the strength and sustainability of the next phase.

Reasons the company hires temporary workers

Hiring temporary workers allows companies to have a more flexible workforce composition and costs. Companies rely on these practices to sustain cost escalation when recovery in market demand remains unclear.

Thus, hiring temporary workers helps reduce overall staffing costs. Their presence can keep the company’s permanent employees productive, but not too stressed when facing busy work due to spikes in demand.

Advantages of hiring temporary workers

Flexibility. If the company’s demand is seasonal, then temporary workers give the company the flexibility to maximize sales during peak seasons. Companies recruit them to achieve targets.

Companies can also recruit temporary workers to carry out certain projects. When projects and contracts are completed, the company no longer bears the same costs as when recruiting permanent employees.

Selection. Companies can screen skilled temporary employees according to their needs. They have a better chance of getting quality new employees.

Save cost. Temporary workers help to save on overhead costs , time and recruiting efforts. Companies do not need to incur a number of burdens – such as the cost of health benefits, workers’ insurance, profit sharing, vacation time and other benefits – when they hire temporary workers.

Factors affecting supply and demand for temporary labor

Many factors affect the demand and supply of temporary workers. Companies hire them because the costs of recruiting, training, and firing permanent workers are more expensive. It is also to meet the additional needs of workers when operating activity spikes or when running a new project. In addition, their wages are usually lower than the wages of regular workers thereby saving costs.

Meanwhile, on the supply side, some workers like the flexibility of temporary work. They can adjust their work time and personal needs. They don’t have to be upset about losing their job if the employer assigns them a tedious task. They can also learn or improve skills before seeking permanent employment.

Demand for temporary labor during the business cycle

The demand for temporary workers is correlated with the business cycle. During business cycle turning p during the trough phase, businesses will prefer to hire temporary labor or increase overtime to increase output. It’s cheaper than hiring new workers. They will hire permanent employees only if they are sure about the prospects for future demand.

In contrast, during the peak phase, businesses prefer to reduce temporary workers. Thus, when the economic contraction does not occur, there is an opportunity for them to increase production.

Long story short, the use of temporary workers tends to increase at the first signs of economic recovery. It will decline at the earliest signs of economic contraction.

Benefits that can be obtained from Temp Agency

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