Whether you’re hiring seasonal staff or looking for help for a special project, you might have a tougher time this year due to a slight decline in the unemployment rate, the fact that most managers have begun hiring already for the holiday season, or the fact that Amazon alone is set to hire 70,000 workers to fulfill orders this season.
So if your business needs extra help, you need to act fast. Temporary workers can be the ideal solution to provide dedicated, specialized help to get you through the crunch. Plus, temp employees can alleviate some of the hiring costs associated with full-timers and give you more flexibility finding people with the skills you need.
Here are four things to remember when hiring temporary workers:
1. Know the difference between temporary employees and independent contractors.
A temporary or seasonal employee is not necessarily an independent contractor. An independent contractor usually has his or her own company, and although you as the business owner have a say in the outcome of the project, you do not have a say in how the project is completed. Temporary employees, like regular employees, are subject to the withholdings and taxes a full-time employee is subject to. Misclassifying temps as independent contractors can lead to huge IRS headaches.
2. Use an expert.
One of the big benefits of hiring temps is that the temp agency does all the work for you. The temporary agency finds workers to fit your needs, employs those people and is responsible for their benefits, payroll, IRS reporting and worker’s compensation insurance. They also help you avoid getting in trouble with the IRS for misclassifying employees. Make sure you review the temporary agreement with the agency carefully to understand which costs are yours and which are theirs’. All agencies are not created equal, so ask for recommendations from other business owners to find a good temp agency.
3. Temp workers are available in all fields and at all levels.
For example, if you need a temporary CFO or COO with experience in your industry, you can probably find one. Be specific about what knowledge and experience you need for the position, and ask for references.
4. Some temporary workers are actually seeking full-time work.
But they are supplementing their income with a temporary gig. If you think you may want to hire a permanent employee at some point, contact agencies that offer temporary-to-permanent placements. You can hire the worker temporarily to see how they fit in with your company.