There are a few primary reasons why a company would lean towards temporary placements over permanent hires. It may seem more expensive to have a temp, but the math will often make more sense to an organization. Some of the reasons include:
- Temp employees fill the gaps while companies mull over their hiring needs
- Companies have ideal staffing levels without the commitment of permanent employees
- Temp employees may not require paid vacation days, workers' compensation, or health insurance
- A staffing agency handles payroll, truancy, and other matters, saving a lot of time
- When a temp employee does well, you can hire them down the road, after they have proven themselves through excellent performance!
Discuss with the interviewer the reasons why you believe your clients prefer temp hires over permanent employees. What is the reasoning your clients use when putting in a job order with you?
"From discussions with my clients, they prefer hiring temp employees when they have an increase in projects and work, but there is an end in sight. I have one logistics client for instance, who have a 1-year contract with Kraft. When the contract is over, they may not have it return. They need human resources to service their clients' needs; however, they do not need a long term employee commitment. We staff about 60% of their warehouse, taking care of payroll, temp employee issues, and more. This service saves them a ton of time and essential energy."
"I have many clients who begin with a temp and then hire the person full time, once they prove 'fit' through performance. We call it temp-to-hire, and my conversion rate with one particular client is 67% which is remarkable. I believe this client feels safer in making hiring decisions this way. There is less risk of making a bad hire and dollars saved because they are not training the wrong people."