What are the pitfalls of using temporary placement for recruiting?

1 Legal risks

One of the pitfalls of using temporary placement for recruiting is that you may face legal risks if you do not comply with the laws and regulations that govern the employment status, rights, and obligations of temporary workers. For example, you may be liable for taxes, benefits, overtime, workers' compensation, and discrimination claims if you treat temporary workers as employees or if you misclassify them as independent contractors. To avoid legal risks, you should consult with a lawyer or a staffing agency that specializes in temporary placement and follow their advice on how to properly contract, manage, and terminate temporary workers.

3 Retention challenges

A third pitfall of using temporary placement for recruiting is that you may face retention challenges if you do not plan and execute your conversion strategy well. For example, you may lose temporary workers who are not interested in becoming permanent, who find better opportunities elsewhere, or who feel undervalued or exploited by your organization. You may also lose permanent staff who are unhappy with the temporary arrangement, who feel threatened or replaced by temporary workers, or who lack career development or recognition. To avoid retention challenges, you should clarify your expectations and intentions with temporary workers and permanent staff from the start and offer them incentives, rewards, and opportunities to grow and stay with your organization.

4 Cost implications

A fourth pitfall of using temporary placement for recruiting is that you may incur higher costs than you anticipate or budget for. For example, you may pay more for temporary workers than for permanent staff in terms of fees, wages, benefits, and taxes. You may also spend more on recruitment, training, supervision, and administration of temporary workers. Additionally, you may face hidden costs such as lower productivity, quality, or morale due to the turnover, instability, or dissatisfaction of temporary or permanent workers. To avoid cost implications, you should analyze your needs and resources carefully and compare the advantages and disadvantages of temporary placement versus other recruiting options. You should also negotiate the best terms and rates with your temporary workers or staffing agency and track and evaluate your return on investment.

5 Strategic alignment

A fifth pitfall of using temporary placement for recruiting is that you may lose sight of your strategic alignment if you do not align your temporary placement decisions with your vision, mission, values, and goals. For example, you may use temporary placement as a quick fix or a default option without considering how it fits with your long-term plans, culture, or brand. You may also neglect to integrate temporary workers into your team, processes, or systems and miss the opportunity to leverage their skills, insights, or networks. To avoid strategic alignment, you should have a clear and coherent vision and strategy for your organization and your recruiting and use temporary placement as a deliberate and intentional choice that supports and enhances your objectives and values. You should also involve temporary workers in your vision and strategy and make them feel part of your organization and your success.