Temps or Quiet Hiring…?

                                                      Temps or Quiet Hiring…?

Corporate budget cuts - after Covid 19 - often mean lower headcounts for most operations. This, coupled with the Gen Z workforce that is labelled as the generation that ‘wants it all,’ and the shrinking pool of qualified workers who used to believe that a rolling stone gathers no moss, adds up to finding new ways to staff smarter. 

Temporary employees, since the recession that hit world economy in 2008, are found to be a reliable resource; you can get qualified people, and control costs at the same time.

While retailers, business process outsourcing providers and project-led organizations and industries have been among the early adopters of the temporary hiring model, new sectors such as energy, healthcare and pharmaceuticals are turning to contract staff with specialized skills and even for managerial roles.

Hiring permanent employees is akin to making a long-term investment in the business; they can help build a strong foundation. Unlike permanent employees, temporary employees are hired for predetermined periods of time. Hiring the latter is less costly and offers more flexibility.

During the course of a year, America's staffing companies hire 16 million temporary and contract employees. India currently has 1.3 million temporary workers in the organised sector. Experts predict that by 2025, 10% of the overall workforce would be working as contingent workers through various staffing companies.

Using Temporary Staff:

Timing the placement of temps in your operation depends on your business cycle and your personnel needs. At times, the need is predictable: during the transition to a new computerized system; merging businesses or offices; seasonal changes (holidays, for example) in business volume. But there are times, the need for temps is unexpected. Perhaps your department has had an unexpected termination, illness, or resignation. Or you might find your staff serving a new client.

Cost Considerations:

Temporary employees are seen as a cost-effective solution because they are typically on the payroll of the staffing service provider and do not burden the company with benefits that permanent staff are normally provided. But cost is only one of many benefits. Temps reduce overhead expenses, such as insurance and other benefits. Temps can be hired and re-hired as necessary; hiring full-timers only to lay them off in rough times shakes the morale of the entire staff. Long-term temps can provide alternatives to full-timers in high-turnover positions. Using temps at straight-time rates can minimize overtime costs. Seeking a qualified replacement for temps can be easier than finding a qualified replacement for someone who's left. Moreover, they give companies the flexibility to quickly alter the size of their workforce depending on business needs.

Selecting an Agency:

Organizations should not base selection of agencies by price alone. Instead, the decision should be based on each agency's policies on recruiting, testing, hiring, training, and placement guarantees. A better- qualified temp maximizes your investment and increases your profit-potential on each assignment.

Those researching an agency should ask the following questions:

·    Does the agency carry out an identity check? 

·    Does the agency monitor employee performance?

·    Does the agency ensure that temps have references that can be contacted?

·    Does the agency carry insurance to provide against theft or damage by temps?

Emerging Trend:

The emerging trend is Quiet hiring - an informal term for the practice in which an employer fills workforce gaps in ways other than hiring new full-time employees, such as by training and/or shifting existing employees into different roles or using independent contractors to cover certain roles and responsibilities. This is the organic response to the trend of ‘quiet quitting’ started by Gen Z, completing one's minimum work requirements without going above and beyond or bringing work home after hours.