Pros and cons of hiring seasonal workers

Before we know it, the holidays will be right around the corner. In the fall many businesses begin to look for additional employees to help deal with the volume of business that tends to occur during fall and winter seasons.


These employment terms are often short-term as most managerial decision makers typically decide to hire temporary workers as a solution rather than permanent staff members. This is generally referred to as hiring "seasonal workers." It is common to see managers hiring seasonal workers in retail, delivery services and tourism.

Image credit: Pixabay

There are a number of pros and cons to this type of hiring solution with no one-size-fits-all answer. If hiring seasonally is a smart strategy or not will depend upon several factors. A business owner or manager has to evaluate the pros and cons of hiring seasonal holiday workers and determine what is best for his or her company (or department).

Advantages of hiring seasonal workers

Hiring seasonal workers can be a cost-savings in a number of ways. When deciding whether or not a seasonal hiring strategy is feasible, consider these benefits:

Manage workload: The primary advantage to hiring seasonal employees is it allows the employer a way to effectively manage an increased workload and/or keep up with consumer demand. This allows businesses to function more efficiently without any disruption in high customer service levels.

Cost-savings: With temporary employees, wage rates are typically lower and, since seasonal workers are usually part-timers, health benefits and other perks are usually not a part of the employment package, saving the employer money in salaries and benefits.

Grow talent pool: Another benefit to consider, depending on what the company's long-term staffing needs are, is seasonal hires can allow the employer to establish a talent pool. For instance, if the employer is considering expanding staff or has a high level of staff turnover, recruiting new staff members will be needed. A seasonal employee is a good way to vet out individuals to see if they'd make a good permanent fit for the company, as Patriot Software, a company that specializes in software for small businesses, notes.

Disadvantages of hiring seasonal workers

While the advantages can save a company money, there are some drawbacks that might potentially weigh an organization down if it depends upon seasonal hires to keep production and/or operations moving.

Training investment: With new hires, there will be costs associated with training. Since seasonal employees likely won't be well-versed in the company and its operations, they'll have to be brought up to speed. If the company is small and/or is limited in staff resources, this might turn out to be more costly than adding one or two permanent employees to manage the workflow.

Lack of loyalty: Seasonal employees may not have any loyalty to the job since it is not permanent. For instance, if a better opportunity comes around, they may quit on short notice, which causes a disruption in production or services.

Legal concerns: Even though individuals are not permanently on staff, employers are still obligated to obey federal, state and local employment laws. According to the Small Business Administration, labor and safety laws do still apply. This includes Title VII and the Fair Labor Standards Act (FLSA), along with unemployment benefits and other typical withholdings, such as Social Security/Medicare and Workers' Compensation.

Hiring temporary staff is a viable option for many companies. However, before making any hiring decisions or policies, including temps, it is always a good idea to explore the pros and cons of hiring seasonal holiday employees.

Additional reference: http://www.dol.gov/compliance/laws/comp-flsa.htm

Comments

Popular posts from this blog

Business advantages to giving away freebies

Advantages small businesses have over large companies