A common rule of thumb is that an employee will cost between 1.25 and 1.4 times their salary. Hiring a full-time employee is not a thing to be taken lightly since it can be a major expense for a company.
While hiring employees is a difficult process to get right, using the temp-to-hire pipeline can make the hiring process easier. Working with a staffing agency and using temp-to-hire employees can give you a chance to evaluate employees thoroughly before bringing them on full-time.
In this guide, we’ll help you decide if the temp-to-hire pipeline is right for your business.
What Is Temp-to-Hire?
In a temp-to-hire pipeline, a company hires an employee for a contract of several months. They’ll only offer a permanent position if they find that the employee does an adequate job and their skills are needed. Typically, temp-to-hire staffing will be facilitated by a staffing company.
This temporary period usually lasts between 3 and 6 months. During this time a company can evaluate an employee’s skills and work behavior and can ensure that they’re a good fit before hiring them for a full-time position.
This pipeline can be beneficial for the company but temp-to-hire and temporary work can also be useful for employees as well. They’ll get a chance to try a new type of position without a major commitment.
Preventing Legal Issues
Although a temp-to-hire pipeline can be useful for your company, it’s important to keep legal matters in mind at all times. You should be clear about the status of a temporary worker when filing taxes and managing business records.
A company needs to be familiar with all labor laws and discrimination laws to avoid getting accused of discrimination and harassment. If you decide not to take someone on full-time, you could be accused of discrimination if you don’t approach things correctly.
Benefits of Temp-to-Hire
There are many benefits of using a temp-to-hire pipeline in your business. One of the primary advantages is that it allows you to evaluate an employee’s performance before hiring them full-time.
Unlike with a direct hire, you’ll be able to get a full view of how an employee performs at work without a commitment. If you need to let go of an employee, it will be easier if they’re temp-to-hire.
A temp-to-hire timeline also leads to time and cost savings. Because you’ll be working with a staffing agency, you can focus on other important duties. You’ll also minimize the risk of hiring a full-time employee who doesn’t meet your standards and slows down efficiency.
Temp-to-hire also provides a lot of flexibility. It allows to test out new employee duties and staffing configurations without extensive paperwork, benefits, or a major commitment.
Deciding Whether to Use Temp-to-Hire Staffing
If you want to use a temp-to-hire pipeline, the benefits can be well worth it. Doing so will give your company more flexibility and help you build a stronger team.
If you need help with your staffing needs in San Diego, consider working with QualStaff Resources. We’ve been in business since 1998 and have successfully employed thousands of contract employees at hundreds of customer work sites.
Ready to get started? Contact us today to learn more about how we can meet your staffing needs.