The implicit assumption when it comes to hiring temporary employees or consultants is that it will save your business money. After all, with these temp workers, you don’t have to worry about an attractive benefits package, a competitive salary, nor a drawn out hiring process. They come, they do their job, and they leave.


But the truth is that bringing in short-term or seasonal employees may actually be more expensive then you think. There are several, often hidden costs associated with using temporary workers.

Below are three reasons why temporary employees may end up costing your business more:

1. Higher wages. In many cases, the wage you will pay your temporary help will be higher than the regular benchmark amount for the full-time position. This premium on the services rendered is especially relevant if you use a temporary employment agency which must cover its administrative and human resource costs, such as aptitude testing, reference checking, and absorbing workman’s comp insurance payments.

2. The Learning Curve. In many cases, temporary workers will need some time to orient themselves to their new surroundings. This includes both the physical set up as well as the corporate culture. Unless the task at hand is very specific and well-defined, much time may be required to answer questions and clarify confusions regarding the job. This means that initial productivity may be a little low, and it will also affect the productivity of those designated to help the temp worker out. Moreover, in instances where a temp worker will interact with customers or customer information, a pivotal mistake could cost the business future contracts or customers.

3. Miscommunication; Lack of Direction. If you really want to capitalize on temporary help, then be sure to create a thought-out, detailed job description and plan of action for these new workers. Much time and money are wasted because temporary workers were unclear about what was expected of them, or the employer’s expectations were unrealistic.

In short, bringing temporary employees into your business can be a big help, but if you do not put some effort into the process it could end up costing your business more than it gained.

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