Question.3986 - Assignment 2
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Assignment 2 Anthony Allen Current Issues in Human Resource Management Dr. Stephanie Pane October 25th 2024 In the argument over whether to hire temporary or permanent staff, I contend that an organization can gain a lot by using temporary workers. As businesses look for flexibility, cost-effectiveness, and agility in a constantly shifting business environment, temporary staffing has grown in popularity. Although some contend that temporary employees are unloyal or weaken a company's cultural cohesiveness, when handled well, the advantages frequently exceed the disadvantages. Employers can maximize their workforce by using temporary workers to manage labor expenses, quickly adapt to demand changes, and cover skill shortages as needed. Flexibility is one of the main benefits of hiring temporary workers. The ability to scale the workforce up or down is crucial in sectors like manufacturing, retail, and hospitality that have varying demands (Marler et al., 2022). Retail businesses, for instance, frequently use temporary workers to manage the spike in revenue around the holidays. Companies can cut employment levels at the end of the season without facing the financial and legal ramifications of terminating permanent employees. This level of adaptability is not only cost-effective but also allows organizations to remain competitive by focusing on core operations without being weighed down by excess labor during slower periods. The cost-effectiveness of temporary work is an additional advantage. Generally speaking, temporary workers do not have the same advantages as permanent employees, which can save a significant amount of money. Benefits like paid time off, retirement contributions, and health insurance account for a sizable amount of a business's costs. Employing temporary workers allows businesses to save expenses without compromising output. Additionally, a lot of temporary employees are employed by staffing firms, which manage the hiring, payroll, and recruiting procedures. The organization's administrative load is lessened by this approach, which also frees up resources for strategic initiatives rather than labor-intensive employment procedures. According to the research by Houseman et al. (2020), companies save up to 20-30% on labor costs by utilizing temporary employees, making this staffing strategy an appealing option, especially for smaller businesses with limited budgets. Additionally, temporary staffing can give businesses access to specific expertise without requiring long-term commitments. This is especially helpful in industries where certain talents could be needed for a short time, such technology, engineering, and healthcare. Employing temporary workers with specialized knowledge in these fields might help businesses tackle certain problems or launch new initiatives without having to pay for permanent hire onboarding. Organizations may need programmers with specialized abilities to finish a project in industries like information technology, for instance, but may not have enough long-term work to warrant engaging these experts on a regular basis. Employing temporary labor allows the business to effectively and affordably meet its short-term demands. A study by Cohen et al. (2018) highlights how temporary staffing in technology-focused organizations improves innovation rates and project completion times since companies can bring in experts who are fully prepared to handle specialized tasks. This dynamic is beneficial for both the company, which avoids the overhead of long-term hires, and the temporary employees, who often enjoy the opportunity to focus on their areas of expertise. Furthermore, temporary employees provide a trial period during which employers can assess a workers skills and fit with the organization. This "try before you buy" approach can be valuable in determining if an employee will be a long-term asset. If a temporary worker proves to be a strong contributor, organizations can often transition them to permanent roles, reducing the risk of hiring mismatches. Houseman et al. (2020) point out that companies report higher retention rates when they convert temporary staff to permanent roles, as the assessment period allows both the employer and the employee to ensure mutual compatibility. In this way, temporary employment can serve as an extended probationary period, providing a structured way to build a committed, well-vetted workforce. Critics of temporary employment argue that relying on short-term staff weakens organizational culture and reduces loyalty. While this may be a concern, a well-implemented onboarding process and clear communication of organizational values can mitigate these effects. Additionally, while temporary employees may not initially have the same level of commitment as permanent staff, many are motivated to perform well in hopes of securing a long-term position. For organizations, this creates an incentive structure where temporary staff work to demonstrate their value. Research suggests that temporary employees who perceive opportunities for advancement and integration are often as productive as their permanent counterparts In conclusion, the use of temporary employees provides an organization with significant benefits, including flexibility, cost savings, access to specialized skills, and an extended evaluation period for potential long-term hires. When organizations develop clear strategies for the effective integration and management of temporary staff, they can mitigate potential downsides related to loyalty and culture. Moreover, with the evolving labor market, many employees view temporary work as a desirable career option, allowing companies to attract a skilled, adaptable workforce. By leveraging the advantages of temporary staffing, companies can respond more efficiently to market demands, manage costs effectively, and foster innovation through access to a diverse talent pool. Temporary employment, therefore, can serve as a valuable asset in the modern workplace when used thoughtfully and strategically. References Cohen, L. E., Hsu, M., & Sandino, T. (2018). Temporary employment and innovation in dynamic work environments. Journal of Management Studies, 55(5), 768-796. https://doi.org/10.1111/joms.12389 Houseman, S. N., Kalleberg, A. L., & Erickcek, G. A. (2020). Cost effectiveness and productivity in temporary staffing. Industrial Relations: A Journal of Economy and Society, 59(4), 603-623. https://doi.org/10.1111/irel.12289 Marler, J.H., Barringer, M.W., & Milkovich, G.T. (2002). Boundaryless and traditional contingent employees: Worlds apart. Journal of Organizational Behavior, 23, 425-453.More Articles From Human Resource
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