Temp Hire Pros and Cons You Need to Know

Temporary workers make up a big part of the workforce in the US. How big? The American Staffing Association says that there are more than 3 million temporary and contract workers work for staffing companies in America during an average week and  17 million during a typical year.

Should your business hire temporary help?

To find out, check out these pros and cons of hiring a temp. You may just find that this hiring arrangement is something that is well-suited for your business right now or something that you’ll want to seriously consider in the future.

Reasons for hiring temps

There are a number of reason why it’s wise to hire a temp instead of a full or part-time worker. Here are some of the pros:

1. Enables your business to adjust more easily and quickly to workload fluctuations

Temporary help agencies can quickly provide your business with qualified staff. Some common reasons companies hire temps:

Employee absences: illness, vacation, maternity or disability leave, sudden departure

Unexpected or temporary demands: special projects, seasonal or peak periods, employee shortages

2. Maintains staffing flexibility

With the popularity and staying power of flexible work arrangements, employers need to stay current with the needs of today’s work force. Hiring temps is just one of the ways that businesses can offer flexibility and at the same time better meet their own needs.

3. Lets your business evaluate a worker without commitment

Based on your evaluation or preferences, you can employ a temp for a designated short term or, if desired, offer a full-time position to a worker who suits your business. Some businesses employ temporary workers as an excellent and cost-efficient way to recruit and test the abilities of new workers before signing them on full-time. Other companies will repeatedly use the services of a temp worker who has proven to be a company asset. Hiring a temp can also be a good way to continue getting work done while you search for the perfect candidate for a particular job. If unsatisfied with a temp’s work performance, all you need do is contact the temp agency and they will take care of the rest.

4. Can save time and money

The cost of hiring temp workers is often cheaper than the cost of hiring permanent employees with benefits. In the short term, it is generally more cost-efficient to hire a temp. For jobs that are expected to last six months or longer, it may pay to hire a full-time employee.   

When you employ an agency, it – not you – becomes the temp worker’s employer. The agency is responsible for and bears the financial burden of recruiting, screening, testing and hiring workers; payroll expenses and paperwork; payroll and withholding taxes; unemployment and workers’ compensation insurance; and any employee benefits they may wish to provide. Some agencies even provide training such as software application tutorials.

5. Can lead to a long-term positive relationship with staffing agency

Temporary employees can provide specialized skills to all types of industries. 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. In the field of Law alone, recent years have seen a dramatic growth and acceptance of hiring lawyers on a temporary basis.

When you find a temp agency that provides timely and quality service and referrals, and is experienced and accommodating, you may want to work with them exclusively. A good relationship with your temp staffing provider will go a long way toward meeting your company needs.

Disadvantages of hiring temps

Although hiring temps can be beneficial, it does have some disadvantages, too. Here are the cons that make some businesses shy away from hiring temps.

1. Training becomes a recurring activity

Every time a temp starts a new work assignment – no matter how skilled or unskilled – a certain amount of training is required in order for them to perform their assigned tasks to suit the specific needs of that company. That means someone on your staff will need to spend time training the temp, and it will take the temp a little bit of time to get up-to-speed on what they are supposed to do. Of course, if the same temp is brought back again, this might not be required.

2. Morale Issues

Morale and employee relations problems can arise when you have temps working alongside permanent employees for months, doing the same work and putting in the same hours, but not receiving the same benefits afforded their permanent employee coworkers. Your regular employees might look down on temps as “outsiders,” or simply not talk to them or mix with them at lunch or office functions.

3. Safety Issues

Certain types of jobs are inherently dangerous and require careful safety training.  Studies show that frequency and severity rates of on-the-job injuries are significantly higher with temporary workers.  No matter what a temp’s experience is, care must be taken to see that dangerous tasks are performed safely.  Never assume a temporary worker is fully prepared to work unsupervised until you have taken the time to see that they can safely perform their work tasks.

4. Legal Concerns

Recent court decisions have highlighted the fact that businesses must be careful how they contract for temporary staff.  There must be no doubt about the workers’ status and about the lack of eligibility for the benefits of permanent employees.  And treat temp workers with the same respect and care you would for your permanent staff.

5. The question of reliability

Some employers may believe that temporary workers are generally less reliable than their permanent employee counterparts. And while there will always be individuals who don’t perform up to expectations, on the average temp workers will be as reliable as your regular employees if you’re working with a reputable staffing agency.


When choosing a temp agency for the first time, you will need to spend some time selecting one that meets your particular needs.  It’s not enough to work with just any job placement agency. Instead, take the time to do your research and find the best staffing agency for your organization. Choose a firm with the experience, industry knowledge, and expertise to bring you the best candidate for your particular job.

As we have Founder who has worked for Fortune 500 companies in the past, the recruiters under his direct leadership at Cloud ERP LLC have exemplified this candidate-focused and client-driven work ethic. We help businesses in the Nebraska, Ohio, Florida area and beyond to attract, qualify, and screen a large pool of potential candidates. As a nationally-recognized staffing agency, our adaptive and flexible style makes it easy for our clients to accomplish their staffing goals, whether that includes contract-to-hire, Temporary or more traditional direct hire roles.

Have you decided that Temp Hire employment is right for your business, or need additional guidance to reach a conclusion? Get in touch with our staffing experts today and experience the Cloud ERP LLC difference when it comes to filling your Temp Hire positions.