Temp-to-perm employees are often referred to as try before you hire. It allows employers to bring in talent first temporarily without offering any commitment for permanent employment.

There are several benefits in hiring temporary workers, but there is a right and wrong way to go about it. Hence, organizations need to be careful and work with temp to perm agencies. Here are five reasons why it makes sense to use temp to hire with an agency for hiring temp-to-perm employees.

1. No Legwork Needed

Hiring temporary employees can be time-consuming like other recruitments. When you use a temp to hire agency, the company does not have to do the legwork for hiring temporary employees. It just needs to contact the temp to perm agency and provide them the company’s staffing requirements.

2. Assess the Suitability of the Candidate

The temp to perm model offers several benefits to employers. Traditional hiring processes are subjective and imperfect. The candidate that looks so good on paper and interviews might be a poor fit for the role.

Companies leverage temp to perm strategy to reduce the risk of bad hires. If the company plans to directly hire employees as per a temp to perm strategy, they also have to look at the legal aspects of such hiring. This is because the company is directly employing the candidate.

When you use a temp to perm agency, the agency is the employer of the candidate, and the company need not worry about the legal aspect of such hiring. This setup helps the company to assess the suitability of the candidate without the risks involved in such a hiring model.

3. Avoid Unemployment Costs and Wrongful Termination

The employment rules are complicated. If the company hires temporary employees on its own, they would need to bear the burden of unemployment costs when they terminate employees. Things are different when you use temp to perm agencies. This is because the temporary employees are on the payroll of the agency and not on your company’s payroll.

When you hire temporary employees through the agency, your company does not have to bear the financial burden of unemployment costs or unemployment insurance of temporary employees who are terminated or fired for a cause.

4. Reduction in Costs Related to Paid Vacation, Paid Time Off, Paid Sick Leave, Retirement Benefits

When your company hires temporary employees directly or through the agency, it has to pay workers compensation and overtime wherever applicable. However, when you hire temporary employees through an agency, the company saves on other financial benefits.

Since the temporary employee is not on the company’s payroll, the company needs to offer monetary compensation in the form of paid vacation, paid sick leave, paid time off, and retirements benefits. These monetary compensations will only be applicable if the temporary employee is offered a permanent position in the company.

5. Helps in Easy Growth Transition

Bad hires continue to be a big risk for organizations. Irrespective of all the questions and tests, it is difficult to tell whether the candidate would be a perfect fit for the role. If the candidate is not culturally fit, he/she may leave the company leading to financial loss due to attrition.

When you hire temporary employees through an agency, the company gets enough time to assess candidates on all aspects like skills, behavior, integrity and other important characteristics. The company gets the freedom to test the candidate for longer periods and not hastened to take any decision.

Only if the company finds the candidate suitable and they need staff, they can offer a permanent position and strengthen the workforce by a valuable addition.

There is no doubt that the temp to perm is the best strategy for businesses in a period of growth. By using temp to perm agencies, businesses can reduce the risk associated with it and hire the best candidates for permanent roles.

Did we miss any important reason for using temp to hire agencies?