Employee issues: Temporary workers

For the past 50 years, firms large and small have been relying on temporary help to manage labor costs. Flexibility is the operative word in temp staffing because it allows a business owner to react quickly to market changes.

Good reasons to hire temporary staff include:

• To meet seasonal business demands
• Fill in for absent workers
• To screen for potential full-time employees

The fringe benefits offered by many staffing companies are a plus for cash-strapped employers. From 1994 to 1997, the National Association of Temporary and Staffing Services reported:

• A 75 percent increase in temps who receive health insurance from their staffing service
• A 50 percent increase in those who opt for life insurance
• A 200 percent increase in temps who elected to be included in a 401(k) plan

If you decide to hire temporary help, keep in mind that the mean pay rate of temporary employees is $10.11 an hour, according to April 1998 figures from the National Association of Temporary and Staffing Services. Many specialized temps receive much higher wages, but a large number fill entry-level jobs.

Wage rates include the benefits required by law, so the staffing service is essentially acting as your payroll administration department.