In this study, several items will be considered while analyzing the cost effectiveness of temporary workers. First, an overall analysis of the benefits as well as the drawbacks of temporary workers will be presented in comparison to the hiring of full-time employees. The presentation of this analysis will demonstrate that hiring temporary workers is, in fact, more beneficial for companies when trying to cut costs. Temporary workers allow for companies to adapt to fluctuating markets, and give them some control in an economy that has not provided much earning incentive. In order to resolve this and to adapt to changing times, temporary workers can be hired and maintained by companies for as long as needed. Skilled contingent workers are included in this study. While skilled contingent workers are often paid more than other temporary workers, and often more than full time workers as well, their use still allows the company to save money. This is because they are usually brought on for short term projects, and then released when the projects are completed. The large salaries or hourly wages earned by skilled contingent workers thus will end, and the company can return to normal expenditure. There would therefore be no need to bring on another full-time employee to handle certain skilled situations that are needed for specific periods of time only, and this has helped to keep costs down for many companies.
This study examined three companies throughout a one year, four quarter period. Costs were analyzed and determined as the companies transitioned into using more and more contingent workers. The results of this study demonstrate that companies achieved cost-cutting results that increased every quarter for each company that participated in the study. Therefore, this study helps to prove that temporary workers, whether skilled or not, can be used to help cut the costs of company finances.
Who are the Temporary Workers
Just as employer demand for temporary workers increases during times of uncertainty, many workers seek temporary employment due to transitory or uncertain circumstances. Such workers might include teachers and students out of school for the summer or other vacation periods, or persons entering or leaving the labor force gradually. Women and young persons are more likely than others to experience these transitory conditions. Therefore, it should not be surprising that there was a disproportionately high concentration of both groups employed by temporary help supply agencies in May 1985. Almost two-thirds of the industry's work force were women, in contrast to their 2 of 5 proportion of all wage and salary jobs. This difference clearly reflects the benefits offered to many women by the temporary help supply service industry, particularly the combination of flexible work schedules and the opportunity to acquire needed experience and job market exposure. In addition, the industry has a large number of administrative support jobs, and a disproportionate number of women are traditionally employed in such clerical positions.
Women with family responsibilities are particularly attracted to temporary employment because it provides the flexible work schedules that allow them to reconcile work outside the home with family commitments. Women who reenter the labor force after a long absence may prefer temporary jobs until they are able to find suitable permanent employment. Employment through a temporary help supply agency enables them to test the market by sampling a range of work environments until they find the right employment situation. At the same time, temporary employment allows these workers to acquire needed skills and experience while building confidence and increasing their