- This article needs to have better references
Temporary work or temporary employment refers to a situation where the employee is expected to leave the employer within a certain period of time. Temporary employees are sometimes called "contractual", "seasonal", "interim", "casual staff", "freelance"; or the word may be shortened to "temps." Agricultural workers are often temporarily employed for harvesting. In some instances, temporary professional employees (particularly in the white collar fields, such as law, engineering, and accounting) even refer to themselves as "consultants." This is not to be confused with consultants (as in management consulting).
Temporary workers may work full-time or part-time, depending on the individual case. In some instances, they are given benefits (such as health insurance), but usually the best treatment is reserved for the permanent employees. Not all temporary employees find jobs through a temporary Employment agency. For example, a person can simply apply at a local park for seasonal jobs.
A temporary work agency, or temp agency or temporary staffing firm finds and retains workers. Other companies, in need of short-term workers, contract with the temp agency to send temporary workers, or temps, on assignment to work at the other companies. Temporary employees are also used in work that has a cyclical nature that requires frequent adjustment of staffing levels.
The staffing industry in the United States began after World War II with small agencies in urban areas employing housewives for part-time work as office workers. Over the years the advantages of having workers who could be hired and fired on short notice and were exempt from paperwork and regulatory requirements resulted in a gradual but substantial increase in the use of temps with 3 million temps employed in the United States by 2000.
Temporary work agencies
A temporary work agency may be distinct from a recruitment firm, which seeks to place permanent employees, but there is often a large overlap: a permanent employee may start out as a "try-before-you-buy" trial temporary worker.
Many temporary work agencies specialize in a particular profession or field of business, such as general industrial labor, accounting, health care, technical or secretarial. Some even "specialize" in odd-jobs. Because of the added level of communication between the employer (worksite) and the temporary work agency and then finally to the agency's employee these short-term roles can be miscommunicated and canceled on a whim. The employer (worksite) is paying for a service and can decide to stop that service (labor/skills) at any time.
A temporary work agency may have a standard set of tests to judge the competence of the secretarial or clerical skills of an applicant. An applicant is hired based on their scores on these tests, and is placed into a database. Companies or individuals looking to hire someone temporarily contact the agency and describe the skill set they are seeking. A temporary employee is then found in the database and is contacted to see if they would be interested in taking the assignment.
When a temporary employee agrees to an assignment, they receive instructions pertaining to the job. The Agency also provides information on correct work attire, work hours, wages, and whom to report to. If a temporary employee arrives at a job assignment and is asked to perform duties not described when they accepted the job, they may call an agency representative for clarification. If they choose not to continue on the assignment based on these discrepancies, they will most likely lose pay and may undermine chances at other job opportunities. However, some agencies guarantee an employee a certain number of hours pay if, once the temporary employee arrives, there is no work or the work isn't as described. Most agencies do not require an employee to continue work if the discrepancies are enough to make it difficult for the employee to actually do the work.
It is up to the temporary employee to keep in constant contact with the agency when not currently working on an assignment; by letting the agency know that they are available to work they are given priority over those who may be in the agency database who have not made it clear that they are ready and willing to take an assignment. A temporary work agency employee is the exclusive employee of the agency, not of the company in which they are placed (although subject to legal dispute). The temporary employee is bound by the rules and regulations of their direct employer, even if they contrast with those of the company in which they are placed. For example, if a temporary employee is asked by the company in which they are placed to lift a heavy box, they may respond "I am sorry, my agency does not allow me to perform that task. I wish I could help. Please feel free to contact my supervisor there for more information."
Temporary employees are in a constant state of employment flux because they are never guaranteed consistent employment, nor are they assured of a solid start or finish date for their assignment. A temporary employee's assignment can be ended at any time, even in the middle of its projected time frame, without explanation. This causes potential turbulence in cases of discrimination, which is usually handled internally between the employee and the agency.
- This section could be improved by adding information from other global regions.
The classic permatemp situation results when a worker classified as temporary works alongside regular employees doing similar work for a long period. By claiming that the employee is only temporary, the worksite company avoids paying for benefits and employer taxes. Benefits and taxes, such as social security, typically are 33% of the employee's pay. For example, if you made 30k per year as a permanent employee (aka with benefits), approximately 10k would be paid for your health insurance, retirement, employer payroll taxes, etc. (in some states sales tax is even paid by the worksite, as the temporary employee's "labor" is considered a sold good). Typically at least that 10k is paid to the temporary agency, who provides little to no benefits to their employee. The worksite company also tangentially benefits because it has no responsibility to the employee — permatemp employees can be fired or laid off at any time, as they have no career service protection or seniority. Temporary employees are often ineligible to apply for jobs open to regular employees.
Pros and cons
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Advantages to those seeking employment from a temp agency are:
- Easy hire: Those meeting technical requirements for the type of work are often virtually guaranteed a job without a selection process.
- Potentially flexible hours.
- Pay rates are sometimes higher than the customary wages in a comparable permanent position.
- The likelihood of getting fired is lower than in a permanent position, though a client of the agency can make a request for the temporary worker not to return, even for a minor infraction. Many agencies, such as OfficeTeam have three-strike polices in this regard.
Drawbacks to temp agencies are as follows:
- In the United States a benefits package is limited to medical insurance as mandated by law, a few reputable agencies offer additional benefits (vision, dental, life, 401k, etc.)to the temporary associates that they place.
- Lack of control over working hours, and potential for immediate termination for refusing an assigned schedule.
- Temp to hire positions have been known to have high turn over rates. Research suggests that plants choose temporary workers over permanent ones when they expect output to fall, which allows them to avoid costs associated with laying off permanent employees.
- Reduced liability protection: With independent contractor status, contractors are required to carry liability insurance or else can be held accountable in a negligence lawsuit when an error results in damage. This practice is highly suspect and is likely evidence of a scam.
- Lack of reference: Many employers of experienced job positions do not consider work done for a temporary agency as sufficient on a resume.
In the United States gradual replacement of workers by temps resulted in millions of workers being employed in low-paid temp jobs.
Less reputable Temp agencies have been involved in some legal controversies, often pertaining to the trust of workers who have been screened little if at all for a position requiring high security clearance.
- Erin Hatton. "The Rise of the Permanent Temp Economy" (blog by expert), January 26, 2013. Retrieved on January 28, 2013.
- Federal Reserve Bank of Chicago, Manufacturing Plants’ Use of Temporary Workers: An Analysis Using Census Micro Data, February 2010
- Erin Hatton, The Temp Economy: From Kelly Girls to Permatemps in Postwar America, Temple University Press (January 7, 2011), trade paperback: 232 pages, ISBN-10: 1439900817, ISBN-13: 978-1439900819; hardcover: Temple University Press (January 7, 2011) 232 pages, ISBN-10: 1439900809, ISBN-13: 978-1439900802
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