As a staffing solution, temp-to-hire offers exactly what employers and workers want right now – flexibility and opportunities to grow .
For several years, employers have faced the pressures of a tight labor market and skilled worker shortage. Talent also struggled to enter or advance in careers, finding they were either underqualified, overqualified, or entirely lacking the skills required for emerging jobs.
But here’s some good news: with innovative thinking, temp-to-hire staffing can be the bridge that helps both groups move forward. In this guide, you’ll learn about the perceptions of temp-to-hire staffing, benefits it can offer, requirements for success, and innovations that are driving growth for clients and workers.
The many benefits of temp-to-hire – for workers and employers
For generations, organizations have used staffing agencies and temp-to-hire staffing to “try out” new talent – and for good reason. Employbridge estimates that it can cost employers more than $6,700 to replace one worker who makes $15 per hour. But beyond making sure talent are the right fit for skills and attitude, temp-to-hire solutions from a staffing agency offer a range of cost- and time-saving benefits.
- Reduce payroll costs
Companies may be required to provide benefits and insurance to temp-to-hire workers depending on their state’s regulations. However, if they use temp-to-hire workers from a staffing provider, the staffing provider is responsible for their talent’s payroll taxes, benefits, and unemployment and workers’ compensation insurance. - Manage risk
Outsourcing temp-to-hire placement can shift workers’ compensation and unemployment administration, compliance, and claims to the staffing agency. In addition, staffing agencies are jointly responsible for maintaining a safe environment for their workforce, which creates incentives for agencies to meet or exceed employers’ safety protocols. - Ensure talent quality and fit
In the staffing industry, it’s common to require temp-to-hire talent to work a set number of hours before transferring to an employer’s payroll. A common range is 500 to 600 hours. During those months, employers can determine if workers have the right skills to be successful and are the right cultural fit. Workers can decide if they like the working environment and the opportunities to advance. - Improve hiring speed and efficiency
Temp-to-hire staffing can shorten the time it takes to fill full-time equivalent (FTE) roles. Staffing providers have established networks of pre-screened candidates, dedicated recruiters, and established processes that create cost-and time-saving efficiencies. For workers, temp-to-hire solutions from a staffing agency may help them secure a placement more quickly than if the employer is managing the entire hiring process. - Address skill gaps
Currently, the manufacturing industry is short at least 450,000 workers. Smaller skill gaps also exist in construction, technology, and healthcare. The effects of these gaps are especially intense as skilled positions remain unfilled and more Baby Boomers retire.
Reducing skill gaps requires the commitment of multiple stakeholders, including communities, schools, employers, and talent. Temp-to-hire staffing can support these efforts by:- Identifying early-career talent who are interested in upskilling for career growth
- Tapping the experience of recruiters who can identify transferrable skills and bring more candidates into the prospect pipeline
Requirements for success: communication and clear expectations
When temp-to-hire solutions don’t work out, it’s often because of poor communication. Whether you manage your own temp-to-hire program or work with a staffing partner, you can set up workers for success by making sure they know what to expect upfront and in the months ahead. Here are a few recommendations to follow:
- State clearly that the position is intended to be a temp-to-hire role. Transparent discussions from Day 1 will help build trust, which is essential in retaining talent once their temp-to-hire periods end.
- Set a reasonable timeline for conversion. Be upfront with associates about what the timeline is and when they can expect to be moved to your payroll.
- Check in regularly with associates. Set a regular schedule and let associates know when and how you’ll check in. Ask them how they’re progressing, review their performance, and tell them what they need to do to be brought on full-time with your organization.
- Discuss your benefits and pay schedule. Offering health insurance, retirement savings, and upskilling can help you retain talent. Make sure you explain your offerings early to temp-to-hire workers so they are motivated to move to your permanent payroll when they have the opportunity.
Adding innovation to temp-to-hire – examples from Employbridge
Staffing agencies have provided temp-to-hire solutions for decades, which means there is room to evolve and innovate within this model. For example, Employbridge has added flexibility and customization to our temp-to-hire solutions to provide greater flexibility and growth opportunities for clients and talent. Here are several examples:
- Client-sourced candidate services. We offer clients the option to put workers that their clients recruit on the agency’s payroll, which eliminates hiring risks for the client.
- Working interviews. This takes the “try it first” strategy behind temp-to-hire one step further with “working interviews” that put candidates at a client’s worksite for a day.
- Customized conversion timelines. Timelines can be set based on the clients’ needs instead of conventional industry models.
- Support for leadership and pipeline development. Our recruiters have specific industry knowledge and can identify candidates who have transferrable skills, which expands our clients’ prospect pipelines. In addition, we can work with clients to try our temp-to-hire talent in different roles to determine the best fit or to assess their potential for advancement.
- Upskilling and career support. We can work with clients to create customized career development and upskilling paths through Better Worklife Academy and Life Skills Studio. Our catalog of classes includes Supervising the Front Line, Basic Electrical, and Industrial Math.
In conclusion: temp-to-hire can be what you need it to be
Using temp-to-hire talent from a staffing agency is a tried-and-true solution to enhance your chances of making a smart hire, reduce payroll costs, and reduce risks.
But beyond those “traditional” benefits, temp-to-hire can provide flexibility and growth opportunities for everyone involved. With innovative strategies, temp-to-hire staffing can help you increase your talent pool, identify future leaders or managers, and shorten conversion timelines that meet your business needs.
Work with a top temp-to-hire staffing agency
With more than 30 years of experience, Employbridge is a crucial partner for temp-to-hire talent, offering expert support, higher-quality matches, and innovative technology for smarter and faster staffing. By championing people, unlocking potential, and bridging skills gaps, we empower teams to build a future-ready and high-performing workforce.
Ready to navigate the dynamic nature of contingent workforce management with ease? Contact us to learn more about how Employbridge can support you.
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