Traditionally, companies used to seek a temporary replacement for permanent employees who were either on leave, ill or on vacation. However, due to a change in the economy, they now need temporary employees whose demand is dependent on production needs. Agencies usually take up the responsibility of availing the employees as required.

The concept of regular shrinking and expansion of the workforce is now trending. The use of such a contingent workforce has its pros and cons. The advantages are as listed below:


Employee vacation, sick leave, maternity leave and health insurance are costs that can be burdensome to the employer. Agencies take up these costs together with those of a hiring process.


This kind of set up enables an organization to adjust to workload fluctuations, market demands, and production requirements speedily and effectively, thus saving a lot of money, resources and time.


During peak seasons, the temporary employees are a relief to core staff as they will not have to overwork and burn out. Absenteeism worker’s compensation claims also reduce.


Agencies send you an employee who meets all your qualifications and saves you the time spent on training new staff. These temporary employees can be used to find out if you have enough work to keep a full-time employee.

Less dependency on contractors

Segmenting your business and assigning different independent contractors to handle each segment costs you more. You also cannot directly supervise the work. Working with a temp is better since they are cheaper and can be directly supervised.

Possibility of hiring good temps permanently.

When a temp is working well, you can consider them for permanent hire without having to put them on a probation period.

Temporary employees are utilized during the peak season to maximize profits and relieved during recess to save on costs. The result is increased company profit growth, increased economic spending and more economic stimulation.