How to be a leader, not just a manager

Posted December 29, 2014

What are your hiring plans for 2015? Have you considered your staffing needs for the upcoming months? If you aren't sure if you're better off hiring direct employees who become a permanent part of your payroll, or hiring temporary workers through your own recruiting department or through a staffing agency, here are several factors to help determine which choice is better for your business.

Timeframe
If you have an immediate short-term task, a temporary hire makes more sense than a direct hire. If you have a longer term project for which you can't spare the staff, or for which your current employees don't have the right skills, temporary hiring can again be the answer. And using a staffing agency can save you the time and expense of hiring someone yourself. But if you foresee long-term, ongoing workforce requirements, direct hire is your best bet. You'll know these candidates are interested in staying on with your company, and you'll have access to passive candidates—even star players currently working for competitors.

Cost
In the long run, a direct hire may cost you more in terms of salary and benefits than a temporary worker. Bringing full-time, permanent employees on board requires costs that may include staffing agency fees, relocation, training expenses and benefits. Direct-hire requires a larger up-front time investment if your hiring efforts are internal. Plus, if the new hiree doesn't work out, the whole process starts over. Temporary workers may seem less costly from an administrative standpoint, as the agency usually handles time sheets and paychecks, but if you consistently discover that your temporary workers don't work out, the continuous turnover can cost you in the form of lost productivity.

Need for Flexibility
How much flexibility do you need? Hiring temporary workers gives you greater payroll flexibility, as you are only bringing on additional workers as the need arises—a great option if your business is cyclical or seasonal in nature. And flexibility has become an important factor as many companies are still dealing with a post-recession pared-down workforce. But you run the risk of not being able to find qualified workers when you need them. Hiring directly means you'll have trained, qualified workers on your payroll at all times.

Still unsure which option is right for you? Call Team Ambassador. We'd be happy to discuss your upcoming needs with you.