How Temp-to-Hire Agencies Can Help Your Business

Employees are valuable assets for every company. Every organization wants top talent for its organization but that’s not easy due to talent shortages and intense competition amongst businesses. Oftentimes, poor hiring decisions have far-reaching consequences on organizations. You can avert the employment risks by employing temp to hire agencies when recruiting temp or new employees.

Here are some benefits of working with temp-to-hire recruitment agencies.


Every company has busy and low periods. Hiring and firing permanent staff to deal with busy periods is not a good option as it is time-consuming and also comes with its own legal complications. Temp-to-hire staffing agencies can provide an additional headcount to deal with busy periods without the burgeoning costs of maintaining workforce during low periods.

Temp-to-hire employees can prove useful to organizations in various situations including special projects, and long-term leaves. Organizations can get temporary staff as per need arises without worrying about legalities associated with temporary employment.


The short interval cycles and hiring manager’s pressure to reduce time-to-hire does not give recruiters enough time and opportunities to test the potential candidates for all skills required for the position. If the recruit lacks important skills required for the job, the company has to invest in training the employee to acquire skills. This is an added expense and loss of productivity.

When you hire temporary employees from the temp-to-hire agency, your organization has enough time to test the employee on all aspects including skills. If the recruit is perfect for the job, the company can offer a permanent position. If the temporary employee is not fit for the job, your organization can always ask for a replacement employee from temp-to-hire agencies.

Risk Reduction

The characteristic of a bad hire is not limited to lack of skills alone. There are several other important aspects that make a new recruit a bad hire. For example, bad attitude, the general lack of understanding of the role, asking too many unnecessary questions, being late, self-importance, arrogance, and not delivering are some characteristics of a bad hire.

It is too difficult to find above-mentioned things about an individual in the interviews. Many candidates have great CV’s, give interview well but they might become a bad hire for your organization due to above characteristics or behavior.

When you hire temp-to-hire employees, you not only get time and opportunities to assess candidates on all important aspects, you can always terminate the employment of the bad hire without worrying too much of legalities involved. The reason is the employee (bad hire) is not on your payroll but on the payroll of the recruitment agency. This certainly reduces the risk of bad hires to a great extent.

Reduced Overheads

When you employ temp employees your organization saves costs on paid leaves, paid vacation, medical and dental benefits, retirement benefits, or paid time off. You are not required to pay these monetary entitlements to the temp employee until he/she is offered a permanent position.

In the short term, the cost of hiring a temp-to-hire employee is lower than hiring a permanent employee. Some projects run for a short period and employing temp-to-hire staff for such projects is a good business decision that can save costs and ensure the organization is not burdened with headcounts unnecessarily.

Reduced Paperwork

When you take employees onboard, there is a lot of paperwork that needs to be done.  For example, you have to provide offer letter to each new recruit stating the compensation and salary details, request any work permits for special tasks and classify the employee as per work assigned. The employer is required to keep an impeccable record for the hires.

When you hire temp-to-hire employees from agencies, the agency is responsible to complete the paperwork and formalities required to take the employees onboard; the agency is the employer for the temp employee. This obviously reduces the paperwork and saves time that is spent on recruiting tasks.

Your business loses time, money and efforts by employing wrong people. Temp-to-hire agencies can help your company avoid this by allowing you to test employee in all aspects before offering a permanent position.

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