Hiring temporary employees gives your organization the flexibility to hire when you need without committing to a permanent job offer. Whether you’re trying to fill a vacancy during your busy season or want to try out professionals before sending a permanent offer, temporary employees can benefit your business in many ways.
Whether you have a short-term need for staff, your demand fluctuates daily, you need to fill a gap while looking for a permanent employee, or you want to try out a working interview, temporary jobs can be the perfect solution.
Our complete guide to hiring temporary employees this answers all the big questions many organizations have, including types of staff and benefits, as well as how to hire, manage, and evaluate temp staff.
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A temporary employee (sometimes called a temp worker) is:
“A contracted professional that performs a job for a short period.”
Although temp-to-hire can be an option, temporary staff are initially employed with your organization for a limited period of time. Some companies use temporary jobs as a trial run or working interviews to see if a candidate is a good fit before sending a permanent job offer.
Hiring temporary employees has its advantages, especially for certain organizations, like those who want to hire for their busiest times, want a roster of staff they can depend on, or want to test someone’s fit before hiring them permanently. Still, temporary staff may not be the solution in every situation.
Most temporary employees fall under one of two categories, independent contractors or payrolled employees. There are many differences between hiring independent contractors and payrolled employees, especially when it comes to onboarding, managing, and paying these professionals. So, it’s important to understand which type you are hiring so you can claim the nature of employment to the CRA. This will prevent your company from being liable for unpaid taxes or other issues.
An independent contractor is:
“A professional who performs services for another person or business as a non-employee.”
Independent contractors can contract out projects or jobs to you or your business, but they are not your employees. They are recognized as self-employed and take on all associated employment expenses, including CPP, EI, holiday pay, and sick leave. As an employer, you are only responsible for paying their hourly rate.
Independent contractors provide benefits that other professionals can’t, including:
Ability to outsource non-central tasks
Gain access to specific skill sets your team does not have
Widen your talent pool
Save money on overhead costs
Independent contractors are a popular choice for organizations needing specialized expertise or help with short-term projects.
A payrolled employee is:
“A professional who is on the payroll of your business, a staffing agency, or a professional employer organization (PEO).”
The employer of record for these professionals depends on the situation. Unless you use an agency or PEO, it will be your organization. The employer of record will cover all taxes, deductions, and workers’ compensation. In return, the employee will receive benefits and other perks associated with full-time employment.
The employer of record usually covers:
Liability Insurance & WSIB coverage
All Payroll Burdens, including 14-day credit, T4 and accounting
Scheduling and dispatching of Pros (AKA staff)
Site Safety Inspection and PPE provided (if applicable)
Injury investigation reporting and NEER
These responsibilities are a big reason why organizations turn to agencies or PEOs. When using a solution like AmbiMi, the platform takes on many of these responsibilities and administrative tasks, leaving you free to focus on building your business.
Payrolled professionals are a popular choice for organizations that need temporary employees with specialized skills or experience and want all the administrative tasks handled by someone else.
Now that we covered independent contractors and payrolled employees, the following are the other four types of temporary employees that fall under either of those two larger umbrellas. When choosing which type to hire, think of the length of time you require a professional and the skills or expertise you need.
Gig workers are typically independent contractors employed on short-term or project-based jobs. These professionals often take positions in various industries, from ride-sharing to data entry. Generally, gig workers take on multiple gigs on any given day or week. So, they take jobs that last a few hours or days but not much longer.
Gig workers are a popular choice for organizations that need to fill short-term staffing needs or require help with specific projects.
Seasonal employees fill seasonal staffing needs. These professionals may have jobs in retail, hospitality, landscaping, or other industries where staffing needs vary depending on the time of year. Seasonal staff may be full-time or part-time and are generally with your company for a season (about three months).
Seasonal employees are a popular choice for organizations with seasonal fluctuations.
Contractors are temporary employees under contract with your organization for a specified time. These professionals may be hired to fill specific roles or complete specific projects and are typically paid hourly or on a project basis.
Contractors are a popular choice for organizations needing to hire for short-term staffing needs for particular projects or set periods of time.
Freelancers are independent contractors that perform high-level services for multiple organizations or individuals simultaneously. They typically have extensive knowledge in a specific area and are hired to complete small tasks in that field rather than perform an entire job.
Freelancers are a popular choice for organizations needing help with a small, high-level project or task.
Another option is to hire for temp-to-perm jobs, also called temp-to-hire jobs. These are temporary roles that have the possibility to transition into a permanent position. Sometimes, the employee knows the role could become permanent when starting with the organization. Other times, the employer may decide to offer the employee the opportunity to stay on permanently at some point during the assignment.
Temp-to-perm jobs allow you to try an employee in a specific role and offer them a permanent position if they’re a good fit. You may only intend to hire temporary staff but will offer a permanent job to a candidate if they impress you. Using AmbiMi, you can schedule professionals based on your needs with no long-term commitments and send a permanent offer to a pro any time after their first shift with you.
Offering temp-to-perm jobs gives you the benefits of having both temporary and permanent employees.
Advantages of temp-to-perm employees include:
Increased flexibility by only making a permanent offer when you have a need
Speed up the hiring process with a roster of interested professionals you can schedule anytime
Seamless transition with little training needed
Evaluate the fit of candidates with a working interview
Reduce costs by reducing turnover
Outsource hiring with a third party (like AmbiMi!)
When do you know it’s time to take the next step? When you have the demand for a permanent hire, and you’ve found a good match!
Our manufacturing client was having difficulty finding and retaining entry-level temporary staff. After exhausting countless job boards, they knew they needed a better solution.
The Team Lead has varying staffing needs, some days requiring five professionals and the next none. Often, he doesn’t have much notice and needs to find temporary staff for the next day. His main goal is to hire ambitious professionals on short notice, so he started using AmbiMi.
Key results from using AmbiMi:
98% decrease in the time it takes to recruit for a role
Ability to post a job and hire professionals in under 24 hours
75% of the professionals hired on a working interview were extended.
With AmbiMi, our client can quickly hire professionals for next-day shifts. Instead of spending hours and hours interviewing candidates, they schedule professionals right away through working interviews. Working interviews help them to find the right fit, then send professionals permanent offers, ultimately saving time and money.
Read more about our real-life example of a manufacturing organization’s experience with AmbiMi.
