How businesses can manage their temporary workers

Whenever a business is approaching a busy season, hiring managers are in the position to use HR software solutions to find temporary hires. Oftentimes, a company will experience a temporary hire mismatch, meaning that they hired too few or many workers to handle the peak periods.

Companies in the logistics industry for example, finds themselves in this situation more often than they should, according to Supply Management Magazine.

“While many employers focus on reducing agency costs and managing supplier costs, the wider issue of controlling and managing the supply and demand of all types of temporary workers needs to be addressed to achieve real savings,” Jamie Horton writes in Supply Management.

At first glance, temporary employees are a great way to tailor to demand without impacting a business’ revenue. However, the logistics industry is used to having a large population of temporary workers, even if it may cause an unbalance in the human resources department. This is because there have been situations when a large order came in and last-minute temporary employees have played a large role completing these projects, according to Supply Management.

However, to keep payroll margin waste low, recruiters are in the position to take on this issue and evaluate when a temporary hiring spree can occur. Knowing this in advance can improve a company’s bottom line, while allowing it to provide the same level of service. By using HR software solutions, hiring managers can see how much money was spent on temporary hires and compare that information to incoming revenue.

Before the period of high demand occurs, hiring managers need to assess  how much financial space they have available and how long they can wait to hire a temporary worker. Doing so too early can impact a department’s budget and the capability of other offices. Knowing how much money can be spent toward these services can help a company use the most effective hiring approach.

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