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How to Retain Talent by Using Temporary Staffing

Contrary to popular belief, temporary staffing has greater advantages. If you're like most employers, you've spent years struggling to find and keep great personnel. You definitely don't want to lose touch with those you were able to hold onto during the Great Resignation. The financials, though, paint a different picture, and economic worries further amplify that drumbeat. Although it might not be in the way you expect, temporary staffing can be helpful. While temporary staffing can be used to replace workers, it can also be used to enhance the excellent workforce you already have and aid in the retention of your best workers.

The Current Job Market

Employers are seeking for ways to reduce expenses without compromising quality or production as the economy remains unstable. The outcomes of temporary staffing are difficult to match in this regard. According to research, temporary workers can be very useful resources when the economy is unstable. In fact, businesses that used temporary staffing throughout prior recessions report greater satisfaction and a higher propensity to advocate using a staffing service during such trying times.

Nationally, businesses are attempting to adapt to changing conventions. And by "new norms," we refer to a job market that is genuinely unlike anything we have ever experienced. Job cuts and hiring freezes appear to be the norm as we struggle with economic uncertainty, but the labor need still exists. How come?

Nearly three years after Covid-19 debuted, businesses all over the world continue to lament their inability to find the talent they require. They are concerned about labor shortages that will probably continue past the pandemic and the upcoming recession. The pool of candidates they can choose from for employment is getting smaller due to deeper dynamics like demographic shifts and immigration. As a result, despite declining demand for their products and services, many companies are choosing to hire more people rather than fire them in order to stockpile labor for when the economy picks up speed again.

The Role of Staffing Agencies

The U.S. Bureau of Labor Statistics has the statistics to support the idea that temporary staffing may support businesses in a variety of ways as they navigate challenging times.

The agency looked at temporary staffing during the Great Recession from 2007 to 2009, "which gave rise to a massive loss of jobs in nearly every industry and the largest post-World War II levels of unemployment on record, barring the recent employment changes from the 2020 coronavirus pandemic." They came to the conclusion that temporary employment increases many months ahead of the general labor market's recovery from recessions by comparing their findings to data collected during prior downturns. In a nutshell, hiring temporary workers is a crucial tool for businesses to recover.

Employers are "able to ramp up quickly when the economy expands by using temporary staff until permanent staff are hired," the study's authors wrote. Additionally, temporary staffing firms provide flexible staffing, candidate screening, and the chance to test out prospective hires before agreeing to a long-term employment agreement. In contrast, flexible labor agreements offered by temp agencies enable businesses to scale back their operations easily and without incurring additional costs for severance pay or having to fire their best employees. Temporary employment is frequently regarded as a crucial stepping stone to permanent employment from the perspective of the applicant and as a flexible staffing option for companies for these and other reasons.

How to Make it Work for Your Company

Employees supposedly anticipate promotions every three years. That sounds reasonable until you realize that the COVID-19-related economic uncertainty has lasted for at least three years. Your top talent who stayed with you is probably getting restless while you've been busy with the ensuing turmoil. Investigate opportunities to advance or upskill these devoted workers while filling in for them in their previous positions. If money is scarce (a bad hire might cost 30% of an employee's salary), backfilling is a fantastic option. Backfilling these positions with temporary workers can be even more valuable if the economy is a key issue.

Utilizing a recruiting partner who prioritizes process and quality will help this strategy succeed. Don't skimp on applicant sourcing and screening, and enquire about the staffing company's support for training. In order to ensure that ramping up and down is as easy as possible and doesn't take away from the time and resources of your present staff, reputable full-service companies like The HT Group can handle training for you and even give onsite management of temporary workers.

Don't undervalue the role temporary employment can play in supporting your hiring and retention efforts, adding to your talent pool for future permanent hires, and assisting in the development of a workforce that can adapt to changing economic conditions.


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