When the economy is floundering, businesses have to become creative to turn a profit. With personnel costs one of the biggest line items, it often becomes the first target for reduction. A feasible solution is temporary workers, which costs less than permanent staff, saves time and offers flexibility. Effectively using temporary staff during tough economic times can help a business run lean and do more with less. For one, using temporary workers avoids the costs of insurance, healthcare, taxes and other benefits.

Temp workers can be added quickly, at a much lower cost, in response to market demands, helping to smooth fluctuations in the workload. If demand falls, the business is spared the expense of laying off full-time workers, which can cost as much as a full year of payroll.  

For the foodservice industry in particular, using temporary workers can help even out the seasonal fluctuations as well as the ups and downs experienced during a struggling economy. Temp workers let a business respond quickly, so customers do not notice an interruption in service.

Some strategies to make the most of temporary workers include:

• Hire temporary workers as a buffer when revenue starts increasing, while waiting for signs that the economy is improving enough to justify hiring permanent staff.

• Avoid overtime by giving temporary workers the extra hours, whether that’s for a special project or during peak workload times. Providing extra help during busy times prevents burnout of full-time employees and helps prevent absenteeism.
• Use an agency to provide temporary workers, which reduces the time and effort spent advertising, interviewing and hiring staff. Temporary workers from an agency have been pre-screened and tested, which means less training is required.
• Improve cash flow by using an agency, which is generally paid within 30 to 45 days, versus an employee who is paid every week or every two weeks. Businesses can hold onto their cash longer, making for better cash flow.
• Use temp workers during a hiring freeze to handle increased workload without adding to the direct hire headcount.
• Use temp workers for non-core functions to free up full-time employees for more critical work.
• Cover critical vacancies with temp workers until it’s possible to recruit a permanent employee.
• When hiring temporary workers be as specific as you can about the qualifications and job responsibilities. It makes no sense to hire someone who isn’t qualified, especially since they are meant to fill an immediate need.

During an economic downturn, it’s especially important to make the most of the temporary employee’s time and efforts. Some strategies to ensure the highest productivity include:

• Provide a work site orientation including a thorough explanation of job duties, an overview of basic information such as the location of the restroom, breakroom and when breaks are scheduled.
• Introduce the employee to someone who can answer questions.
• Don’t treat temporary workers like they are different from full-time employees. They should be shown the same respect and consideration given to all employees.
• Clearly define the temporary worker’s role and performance criteria.
• Keep in mind that temporary workers who are looking for a permanent job and those who are interested in temporary employment long-term are more willing to put extra effort into their job.