According to Statistics Canada, employment rose in July, bringing Canada’s employment rate within 1.3 million (-7%) of pre-COVID-19 levels. And while job gains may have been driven by companies re-hiring temporarily laid-off workers, Indeed points to continued gains in job posting numbers closing the gap between 2019 and 2020 benchmarks.
If your organization is part of this cohort of businesses currently looking to hire, you may be nervous about the unpredictability of the economic recovery. Will current levels of demand return to normal? To assuage some of these concerns, consider hiring temporary employees to help you weather fluctuations in demand.
Let’s start with the basics:
What’s the Difference Between a Temporary Worker and a Contractor?
There isn’t a clear-cut answer here. Both temporary workers and contractors can fill any number of roles in any number of industries and there can be a lot of overlap between the definitions of temporary worker vs. contractor. There are a few general differences, but these differences don’t apply in every situation.
- Contractors are typically hired for a very specific block of time with the start and end dates clearly spelled out in the contract. In contrast, temporary workers can be hired for anywhere from a few hours to a few weeks or even months, with the duration often being fluid.
- Temporary workers can often be let go on very short notice. Contractors have their work term spelled out within their contract, with both parties bound to the agreement unless there is a breach on either part. On the other hand, there usually is no such agreement for temporary workers.
- Temporary employees most often fill entry level positions, whereas contractors tend to be specialized, such as graphic designers, software programmers, financial advisors and so on.
- Most often, temporary employees are managed through a staffing agency where the agency is responsible for recruiting, employment agreements, payroll, etc. Contractors, on the other hand, are typically employed directly by the organization with all the admin work handled in-house.
- Temporary workers are often paid on an hourly basis, whereas contractors tend to be paid pro-rata, meaning their pay is based on what a full-time employee at their skill level would expect to make.
Advantages of Hiring Temporary Workers
There are plenty of reasons why you might hire a temporary worker. These are the top 5 advantages of hiring temporary workers:
1. Quickly meet fluctuations in demand
An agency can usually find you someone on short notice, so when you find yourself with an unexpectedly sudden (or possibly seasonal) jump in demand, you can quickly fill that gap with temporary workers.
2. Flexibility
If you don’t know how long you will need the extra hands, hiring a temporary worker can be an ideal option. The uncertain nature of economic recovery in a post-pandemic world has made it especially difficult to predict consumer behaviour and future demand patterns. The flexibility of a temporary workforce can help you meet unpredictability with ease.
3. Cost savings
Because temporary workers are typically hired through an agency, you save yourself the money and effort of seeking out candidates, interviewing, hiring and then managing all the paperwork of a new hire. That’s all handled by the agency.
4. Fill gaps while recruiting permanent employees
Let’s say a key team member has suddenly left the organization, or your current team members are fully loaded and it’s time for a new hire. It can take time to hire well and you don’t want to rush the process and risk a bad hire. A temporary employee can help support your current employees in carrying the extra load until a permanent hire is found.
5. Potential for new permanent hires
Some temporary workers like the flexibility of temporary work and have no interest in permanent employment, but many use temporary employment as a way to grow their skills and experience and ultimately find a permanent role. You may find, during a temporary employee’s time with your company, that they are a great fit for your organization and you’ve got yourself an amazing new hire who you’ve already seen in action.
How to Hire a Temporary Worker
So you’ve decided to go the temp route. Great! Now what? Given that one of the advantages of temporary employees is that an agency can handle much of the heavy lifting, that’s probably the best way to go. There are a few things to note about using an agency:
- While the cost of using an agency may make it tempting to go it alone, look into exactly what the agency provides before you decide. If they are doing the recruiting, interviewing, payroll and other administrative work, it is often well worth the investment.
- Does that mean temporary workers get paid more? No, they’re paid the market rate. Many agencies bring in revenue by charging a higher hourly rate than what they pay the employee. For example, if a temporary employee is paid $15/hr, you may be charged $20/hr by the agency. That extra $5/hr is the agency’s rate for all the admin work handled on their end. This should be clearly spelled out for you before you enter any agreement with an agency.
- A good agency should be able to advise you of any legal or liability concerns, such as any safety issues as well as expectations regarding work environment. They should also be making it clear to the employee what he or she is not entitled to (sick leave, vacation pay, insurance, etc.) so that there can be no question down the road that obligations have been filled.
- Be clear about what you need, including soft skills. Ideally, have this prepared before approaching an agency, but a good agency can also help you clarify your needs.
- If the role changes, talk to the agency. Technically your temporary employee is employed by the agency, not you. If there are changes to the role or mandate of a temporary employee, you need to run that through the agency.
- While the agency is the temporary worker’s employer, you are still responsible for providing a safe and comfortable work environment, which also means cultivating a work culture that is inviting and accommodating.
Hiring Temporary Employees Directly
Agencies are probably the easiest route for hiring temporary workers, but they are not your only option. You can also seek out temporary employees by the usual recruiting means — job boards, employee referrals, social media, etc. If the role you want to fill is entry level and the hours are flexible, you can even try university job boards.
That said, there are legal concerns to hiring temporary employees. Make sure you are fully up to speed on any federal and provincial laws before going it alone. To give you an idea, this article outlines a few of the legal concerns around hiring temporary seasonal workers in Ontario, but it is far from the full picture.
Make Your Hiring Decisions Based on Needs and Resources
Whether or not temporary workers are the right choice for you really depends on your needs, resources and expectations. If you’re on the fence, it’s worth reaching out to an agency for an initial chat to see what’s available to you. They may even be able to suggest alternative solutions if the temp route just isn’t the right fit. If anything, it will help get the ball rolling on addressing the challenge you’re currently working through.
Learn more about how Adecco can help with your temporary recruitment needs. Contact us today!