When your business faces seasonal overload, project-based workloads, or sudden staffing shortages, you often get caught midway. The question that arises – should you hire temporary staff or bring on full-time employees? In the pinion of Charles Spinelli, understanding the cost implications of both choices can help you make the right decision.
Charles Spinelli on Initial Hiring Costs
When you hire temps through an agency, the agency handles the recruitment, screening, and sometimes even training. You pay the agency for the task. But you save time and money on advertising, interviewing, and onboarding.
However, when it comes full-time employees – you bear the cost of the recruitment process. This includes job portals, job postings, social media promotion, multiple rounds of interviews, and onboarding programs. These costs can go up quickly, especially if your hiring process is long or your turnover rate is high.
Wages and Salaries
You typically pay the temps only for the hours they work. You are not responsible for paid time off, sick leave, or holiday bonuses.
However, full-time employees have fixed salary regardless of workload. Even during slow periods, you are paying for the full-time work, including breaks, holidays, and non-productive time.
Benefits and Perks
You are simply not required to offer health insurance, retirement plans, paid leave, or other costly perks. The staffing agency might offer benefits, but that is not your financial burden.
Full-time employees have a varied type of packages. From health insurance to sick leave, you are expected to bear a lot of cost. This could be expensive.
Training and Development
Most temps come with the skills needed for the job. You might offer brief orientation or job-specific guidance, but long-term development is usually not needed.
You will have to invest in your full-time employees for their long-term growth. This means training programs, skill development workshops, and coaching sessions. It is an investment, but also a cost.
Flexibility and Scalability
You can scale your workforce up or down quickly. Once the workload drops, you are not required to keep them on payroll. It makes things easier for you to handle.
Downsizing full-time employees can be costly and emotionally difficult. Layoffs come with legal risks, severance packages, and a often as a hit to your brand reputation.
If you are working on short-term projects, covering for absences, or need flexibility, temporary staff offer significant cost advantages. They are low-commitment, low-maintenance, and ideal for fluctuating workloads. But when you are building culture, investing in long-term growth, or need specialized expertise, full-time employees are the better choice. Despite the higher upfront and ongoing costs you should invest in full-time employees.
In the opinion of Charles Spinelli, you need to strike a balance to create a harmonious environment. If you don’t want to go full-blown on either staffing type, you can always mix them up. You can always use a hybrid model. Keep a small team of dedicated full-timers, and empower them with temps during high-demand periods. You are going to get the best of both the staffing type this way. It is the best way to get both stability and scalability.