IsinessTemp-lo-HireCompanies are continually challenged to maintain an effective work force while controlling cost. Payroll expensestypically account for 30 to 50 percent of company expenses with some companies spending much more. Humanresources managers are challenged to find ways to hire qualified, productive personnel while keeping costs down.In difficult economic times, the challenge is even greater. Companies must be cautious about hiring new employeeswhen sales and profits are declining. On the other hand, the company must function in the present and be preparedwhen the economy improves.Today, human resources managers often use hiring practices to help create a flexible work force. Hiring temporaryemployees is a way to meet urgent, short-term needs. Temps are hired for a limited time, a specific project, or when acompany does not want to risk committing to a new permanent employee. Another approach, known as temp-to-hire,adds the possibility of full-time employment for temporary employees. Sometimes called "try it before you buy it," thetemporary employee is offered a trial period. If the company determines it needs a permanent employee and the templikes the work and the company, the temp becomes a permanent employee.The American Staffing Association, a trade association, reported that in a recent year nearly 2.5 million people workedin temporary or non-employee positions each day. That is nearly two percent of the total workforce. To place thatmany temporary employees, staffing companies had to recruit more than 11 million prospective employees during theyear.Think Critically:2. Why might temp-to-hire be used by companies in good economic times?

It is why we might use temp for hiring for good economic times:1. Flexibility. As mentioned off the…

Answered: 2. Why might temp-to-hire be used by…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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