Advantages and Disadvantages of Temporary Employees

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Advantages And Disadvantages Of Temporary Employees

  During the 1990-2008 periods, employment in the temporary help services industry grew from 1.1 million to 2.3 million and came to include a larger share of workers than before (Luo, Mann, Holden, 2010).       Employment in this industry has been very volatile because, temporary employees offer great advantages to businesses. As of today, businesses are using full time temporary employees as an alternative to reduce their cost and remain profitable and competitive in the market. However, along with this assumption this research want to explore the pros and cons of such approach and demonstrate if in reality this strategy is a cost reduction approach to the high and expensive staffing activities in the manufacturing industry. Advantages of Temporary Employees

      Many businesses use temporary employees to supplement their staffing needs and as a strategy to reduce their staffing cost. Depending on the circumstances, temporary work arrangements can be both beneficial and detrimental to businesses (Kirk, Belovics, 2008). The first advantage the author discussed is flexibility. In a highly competitive business environment, a company is capable of adapting its workforce to meet changing labor demands (Kirk, Belovics, 2008). Temporary Employees can be available when needed and let go without notice when the assignment is completed or the production requirements are low. Temporary workers can be use for short-term assignments or years. In addition, many businesses use temporary employees on a trial basis to test their abilities to do the job (Admin, 2010).       Another advantage is the cost reduction. Usually compensation to temporary employees is less than compensation to permanent employees (Admin, 2010). In addition, organizations are not incurring in additional hiring fees or firing costs.       Immediate expertise is another advantage. In high skilled occupations, temporary employees can offer immediate...
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