Temp to Hire Strategies – Do they Work? Do they Reduce or Increase our Staffing Costs?
We get asked these questions all the time and each time our answer is a resounding, YES! Temp to Hire staffing strategies reduce costs of hire, lower the costs of early hire turnover, and provide employers with quick and easy access to hard to find talent pools—in a “just in time” format.
HR departments, while sometimes quick to criticize a temporary or contract workforce as being less committed or talented than their core workforce, generally like a certain percentage of their workforce as contingent as they represent employees who can be converted to direct hire status quickly when business heats up. But the real value of contingent workers is not just in providing companies with increased flexibility, but also the ability a contingent workforce provides for companies to tackle change quickly, with quick access to employees whose skill sets are unique and not easily developed “within.” Temp to hire strategies directly impact an organizations recruiting, staff and organizational development costs, impacting a company’s ROI for years to come.
Temp to Hire contingent workers also impact bottom line profitability by driving down unemployment claims, workers compensation claims, upgrading employee quality (only the very best employees are eventually hired), and keeping core workers “on their toes” with a fresh pool of new talent becoming the workplace norm.
The mathematical difference between the costs of an auditioning employee compared to the costs of a fully benefited core hire almost always pencil in favor of the temporary worker as the lower cost solution.
The design and execution of temp to hire staffing strategies is a core area of expertise for the PACE Staffing Network. Over 35% of the employees we place on temporary or contract assignments end up being hired by PACE clients each year. For programs specifically designed for hiring, the conversion rate can be closer to 85%.
For a personal consultation on the effective utilization of temp to hire staffing strategies and to do an analysis of how a temp to hire model could impact your overall staffing costs, contact me, Nancy Swanson at firstname.lastname@example.org, I am PACE’s VP of Partnership Development.