Short Term Recruiting Options: Contingent Staffing
The employer/employee relationship is evolving at a rapid pace. PEOs take over responsibility for administering entire workforces and lease employees back to business owners. Third party consulting firms fill the requirements of positions traditionally handled by in-house experts in Accounting, IT, and HR. Temporary and contract workers are expected to make up an increasing percentage of the average employer's staff in coming years.
Even in at-will states, recruiting and hiring a full time employee carries significant costs and risks. Employers with fluctuating staffing needs can ill afford to hire and lay off workers over and over. Compliance issues alone make this situation a nightmare. Litigation brought by disgruntled ex-employees and unemployment insurance premiums paid to the state are a considerable financial burden.
Flexible Hiring Options
Contingency staffing is one partial solution to these problems. It offers employers the ability to operate with a leaner workforce and expand rapidly as needed to take advantage of market opportunities. Seasonal, low-skill positions have traditionally been filled with temporary labor in many industries.
Now, companies are using temp and contract employees to handle more complex tasks. With so many highly skilled professionals looking for work, staffing agencies can often find suitable candidates for mid-level positions even on short notice. Employers can use these resources to fill labor needs without a long-term commitment. This approach has, of course, its downside as well as its benefits.
Avoid Potential Pitfalls of Contingent Staffing
Labor laws protecting workers can’t simply be ignored because an employee is hired on a temporary basis and receiving their actual paycheck from the staffing agency. The contracts you enter into must be in compliance with state law. They also need to clearly outline which party is responsible for any employment related taxes and workers’ comp insurance.
Confirm that the staffing vendor you choose is following best practices in hiring including work authorization verification, background checks, documentation, etc. Government agencies are now holding employers responsible for ensuring the compliance of contractors. If your company accesses labor from a temp agency, you may be held accountable if their hiring practices are deficient or discriminatory.
Temporary employees must be held to the same standards as your permanent workforce. Ensure that receipt of all corporate policies is acknowledged in writing by your contingent staff members. Also, remember that safety and anti-harassment training are essential - even if you are only hiring a worker for a couple of months.
