For many small businesses, hiring temps is the perfect solution during seasonal upswings or when extra help is needed because someone is out on maternity or disability leave.
Or perhaps you’re looking to fill a recently vacated position but want to “test the waters” first. Then, if it works out, you can offer the temporary employee a full-time position.
In those situations, a temp might be a great solution.
The Rules of the Road for Temps
There are many advantages to hiring temps, but there are precautions to consider, as well. Before you take the temp route, here are some things to keep in mind when hiring temporary workers:
Know that temporary employment involves a set period of time, not the number of hours a week.
Typically, the number of days, weeks, or months will define a temp job, or the duration of a special project or the length of time a permanent employee is out.
Find out if your temps count as “employees” for labor law rules.
Certain federal and state employment laws apply to employers based on the number of employees — and may or may not count temps in the total. Protect your business from fines and lawsuits by knowing which is which.
Who’s minding the store … er, um, I mean the paperwork?
There are two ways to hire temporary employees. You can handle it all yourself, or you can use a temp agency. And each has advantages and disadvantages for your business.
Taking the Outsourcing Route
When you work with a staffing agency, the agency is responsible for recruiting, screening, testing and hiring workers. They’re also handling timekeeping, payroll and related taxes and providing unemployment and workers’ compensation insurance.
If you decide to use an outside agency, you’ll typically pay a fee that includes the candidate’s hourly rate and the agency’s increase to cover the above services.
But, even if the agency oversees the above services, you are considered the temp’s co-employer. As such, you need to be mindful of workplace issues such as safety, preventing discrimination and harassment, and wage and hour compliance under the Fair Labor Standards Act (FLSA).
Keeping It in the House
If you’re hiring a temporary employee directly, you will need the individual to fill out an I-9 form and provide the appropriate documentation verifying his or her eligibility to work in the United States. The temp must also fill out a W-4 so you can process the correct withholdings for payroll.
Making It All Clear
Get Specific about Everything
At the very beginning of the temp relationship, specify the pay rate, pay period, payday, eligibility for benefits (if any) and length of employment. Remember, if a temporary, non-exempt employee works more than 40 hours in a workweek, he or she is entitled to overtime pay for those hours.
Provide the Benefits of Temp Jobs — Or Not
You are not required to offer paid time off (vacation, sick or personal days) to temporary employees. You don’t have to extend health insurance, either. Many employers consider this a significant cost savings — and benefit — to hiring temps.
Make Sure They Can Do the Job Before You Hire
Unlike a regular hire where on-the-job or classroom training is more extensive, temps typically have to learn quickly.
Whether you’re working with an agency or hiring a temp on your own, it’s important to explain the job, the skills needed and your basic expectations. Take the time right away to work through these details to avoid problems later on.
Remember, Temps Are People, Too
This should go without question, but always treat your temp workers with the same respect and care you do your permanent staff. Tammy is not “just a temp,” but an important part of your workforce, if even for a short amount of time.
