Temps are being employed by an organization as the same amount of work can be done by spending less amount of money on the temporary workers than the permanent ones. In a way, the system is beneficial for an organization.
Temporary workers do not get same benefits as the permanent ones, even if they work in full time or part time. The temporary workers are the first one to fire out during a business downturn. The contract between the temporary worker and the company is purely on the hand of the company. The contractual period can end any time the company wants.
These temporary employees are hired directly by the company or from a Human Resource Outsourcing Company. The employees hired from the HR outsourcing companies are often being given various benefits like health care insurance. This way it also becomes beneficial from the employee’s point of view.
Businesses of all size, may it be small or large, are benefited by the Temp system. However, the small business houses have many advantages by hiring temporary employees rather than a permanent one. The various benefits include:
- Flexibility: Not every time the company has equal work pressure and thus demanding equal work force. Thus hiring temporary employees during the time of work pressure is much more beneficial for at least the small companies, where the business fluctuation rate is high.
- Cost Savings: The administration and benefit cost can be lowered down by hiring temporary employees.
- Reducing the cost of bad hire: Recruiting a bad employee turns out to be very expensive. Thus for small business where there is a financial crunch the risk is reduced by hiring a temporary employee.
- Fulfilling all bases: By reducing the cost of hiring or recruiting, the small business firms can invest the money for other business purpose that will help to enhance their business.
source: http://payrollservicesmi.blog.com/2015/03/18/temp-a-suitable-employee-structure-demanded-by-small-business-firms/