Risks of hiring temporary workers

Morale Problems

There are very few downsides to hiring employees through a staffing agency, but problems with morale can be one of the most insidious. Providing benefits to permanent employees but not to long-term temps can result in resentment, performance issues, and problems between employees. After a certain extended period of service, you may be required to offer temps the same benefits as permanent employees.

Legal responsibilities

Using temps is not a way around your responsibilities as an employer. Although temporary workers are employees of the staffing agency, your company might also be held responsible in cases of hiring discrimination, sexual harassment, workplace safety, or other situations that directly involve your workplace. However most staffing agencies retain responsibility for payroll liabilities, worker's compensation, and other administrative aspects of employment. If you have questions about your responsibilities, don't delay clarifying it with the agency.

Higher cost

The workforce management services provided by staffing agencies don't come for free, so you'll typically pay more for a temp than you would for an employee in the same job. Although temps may cost slightly more, leaving the administration to the agency will also free up time, allowing you to focus on your core business. However for long-term needs, you may find a contractor or an employee less expensive overall.