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Temp-to-Hire Positions: What You Need to Know

May 18, 2017 | posted by Abacus Payroll
Benefits Hiring Temp to Hire Positions

Contracting specialist jobs is becoming an increasingly common practice in the world of business. Often, temporary hires—also known as “temps”—provide a cost-effective solution to an otherwise expensive and unwieldy problem; however, hiring temps also provides you with the opportunity to gauge their skillsets and, if pertinent to your business, field-vet potential new hires. Here’s what you need to know about hiring a temp for a full-time position at your company.
 

Why Hire a Temp?

The word “temp” is synonymous with “freelancer,” “contractor,” and “consultant;” in other words, a temp acts as a specialist in a particular area for as long as the company needs them—often for an increased salary. When the company terminates the temp’s contract, the temp ceases to provide said services.
 
In most cases, this is preferable since the jobs for which one would hire a temporary employee often lack longevity.
 

Employer Benefits

If you need a job done in a pinch, the process for hiring on a temp is much easier to initiate than looking for a full-time employee. As mentioned previously, temp work tends to be much more cost-effective than a full-time position since the temp employee will not require many benefits or incremental salary increases over time.
 

The use of a contract also means you don’t have to worry about letting the employee go once their position is obsolete and gives you a set amount of time to think about the temp’s potential long-term service to the company.
 

If you choose to hire your temps for permanent positions, there are several benefits to doing so:

  • The amount of time you’ll spend onboarding them will be short
  • You won’t have to worry about whether they fit in with your existing employees
  • Your company has directly influenced their experience
  • You’re already aware of their strengths and weaknesses as an employee

Also worth noting is the mindset of the average temporary hire. Since the majority of temps are working on a freelance basis because of unemployment or otherwise unfavorable circumstances, the dedication you can expect from a temp is on par—if not greater than—that which you expect from your existing employees. They will need you just as much and as immediately as you need them.
 

Employee Benefits

Think of temp work as the “free trial” or the “lite” version of a full-time, salaried position: a temp worker gets a taste of the company dynamics, the overall ethos, and the workplace responsibilities. At the same time, a temp often has the privilege of operating somewhat outside the boundaries of the business in question, which can afford them an entirely objective view of the company’s ins and outs. This is important for employees looking for a job in which they will not only succeed but thrive.
 

Furthermore, employees who start as temp workers for a company have a distinct advantage over other applicants come hiring season since they can competently answer questions about the company’s function and they can cite experience from within the company itself.
 

Advertising a Position as Temp-to-Hire

If you decide to advertise a temp-to-hire position, you can expect a competitive workforce response. This is comparable to an internship process: you’ll make it publicly known that a well-qualified temp who fits well in the company could secure a permanent spot at your firm, which will encourage high-quality work in the meantime. At the end of the contract, you’ll have a dedicated employee and an easily implementable solution to your initial hiring problem.
 
 
Abacus Payroll is dedicated to helping you manage your workforce, no matter how temporary. For more information on temp-to-hire positions and their tax ramifications, give us a call today at (856) 667-6225!
 


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About the Author: Abacus Payroll

Abacus Payroll, Inc. is a leading provider of payroll solutions for businesses of all sizes. Whether yours is a family-owned small business or a national corporation, we provide payroll, tax and other financial services on time and at an affordable price.

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