What to watch out for when hiring temporary staff

If you need short-term staff, you can hire them through a temporary employment agency or a staffing agency. But when does it pay to hire temporary workers? Flexibility and convenience are offset by higher costs. Find out about the advantages and disadvantages of using an employment agency and what the rules are. 

One of the biggest advantages of working with agency staff is the flexibility. You hire a staff member for as long as you need them and you only pay for the hours actually worked. Many agency staff are available on an on-call basis, which is useful during peak periods, for seasonal work or if a staff member is unexpectedly absent. And if the employee does not turn out to be a good fit for the organisation, you can easily and quickly end the arrangement within 26 weeks, without any notice period.

The flexibility that makes hiring a temporary worker so attractive is, at the same time, also a disadvantage. Not only you, but also the temporary worker can end the arrangement from one day to the next.

Stricter rules for the employment agency sector

The government wants stricter controls on temporary employment agencies and other companies that supply staff. All too often, they fail to comply with the rules or things go wrong. From 2027, therefore, the Provision of Personnel Accreditation Act (WTTA) will come into force. This means that you will only be allowed to do business with an approved company. 

Staff shortages

A temping agency has an extensive network, and either a broad or a specific supply of workers. This means an agency can help when you cannot find permanent staff. You can also use a temporary employment agency to cover for workers who are ill, ensuring that all work can continue as quickly as possible.

Convenience versus cost

Employment agencies take the entire process around hiring and paying staff off your hands. They draft the job description, conduct the interviews, and take care of the complete payroll and personnel administration. The temporary employment agency also remains the legal employer. This means that you as a hirer do not have to continue paying wages if the temporary worker falls ill, drops out, or takes leave.

On the other hand, the amount you pay the agency is relatively high. You pay not only the temporary worker's gross salary, but also the agency's mediation costs and coverage of employer risks. In practice, this amounts to a payment of 2 to 3 times an employee's gross salary. The more qualified the temporary worker, the higher the hourly wage and mediation costs. Every employment agency charges its own rate, so it is a good idea to ask for several quotes

Hiring temporary workers

Does the position you are looking to fill have a long onboarding period? Then consider carefully whether it is worth it to hire someone who can leave at any time. If you want to start with a temporary worker but are worried about the costs, many temping agencies offer the option of taking over the temp free of charge after 6 months.