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Disadvantages of a Temp-to-perm Policy
The temp-to-perm policy of recruiting employees in organizations has some hidden short-comings which employers cannot identify easily. One disadvantage is that it is not effective if an organization wants to come up with the best recruitments. The temp-to-perm policy has grown popular mainly because employers are afforded a test before they buy basis of recruitment (Griffin, 2013). On the flip-side of this basis, the best and highly qualified personnel will not look for temporary employment. Most people with skills want to find a permanent job, where they can enjoy all the benefits of such a job. It, therefore, means that using a temp-to-perm policy, the organization will mostly attract people that are not highly skilled, and a big proportion will not get a permanent offer. The temp-to-perm policy is, therefore, disadvantageous because it will not attract high skill workers as employers would expect.
The second disadvantage of a temp-to-perm policy of employment is that it does not encourage a commitment in employees. Although this policy of recruiting is cheaper for an organization than paying recruitment agencies, it is ultimately expensive to keep repeating the recruitment process (Griffin, 2013). Most employees will have one foot out to look for a permanent job because they know that the current one may not be successful. Such a distraction greatly reduces productivity in organizations using the policy. Employers choosing this option get savings from benefits, but they end up losing on the productivity aspect. Recruiting on a permanent policy would solve this problem because there is a commitment for workers since they want to keep a job and all the benefits.
Thirdly, the temp-to-perm policy creates complications for employers when it comes to the job description. They must make employees come under this policy whether they will occupy a previously permanent position, or creation of a new position will take place. It takes a lot of time to ensure that the employees can meet expectations of the employer, and this affects the competitiveness of the organization. Employees may also get disappointed when they find out different roles from what they expected when coming to the organization on a temp-to-perm policy. On average, it is cheaper to keep a temporary employee, but looking at the limitation of this temp-to-perm policy, it is preferable to have permanent employees. Permanent employees cost $32.01 per hour compensation fee, while temporary ones cost $15.56, but the hidden cost for temp-to-perm policy is much more costly to an organization (Griffin, 2013).
Advantages and Disadvantages of a Temp-to-perm Position to a Job Seeker
Temp-to-perm positions have some advantages and limitations for job-seekers. As a job-seeker, it is important to analyze these advantages and short-comings to make a suitable decision. One advantage is that such a position offers an opportunity to acquire new skills. When such positions are on offer in organizations, qualifications are more relaxed, and organizations consider people even without specific skills. It is an advantage for a job-seeker because it will be possible to explore new fields and become motivated in trying a new thing. It implies that even though one may not get a permanent position in an organization, an employee will walk out with new skills and a better resume. It will be possible to land a job with the acquired skills.
Limited time Offer
Secondly, a temp-to-perm position is attractive to job seekers because it does not completely lock them to the job. They are able to make money as they are making applications for permanent jobs available in the market. Such a flexibility is very attractive as it creates a feeling of a brighter future for a job seeker. In addition to that, such a position helps job-seekers test the job and find out if it fits their lifestyle (Griffin, 2013). They will have a lot of time to analyze the job in consideration with their lifestyle, and if the job fits them, then they will accept a permanent position if offered.
A temp-to-perm position also has some disadvantages that are worth considering. One of the biggest short-comings is that such a position does not come with benefits expected in compensation. On average, a temp is compensated an amount of $15.56 per hour, which is a small amount and may not meet the needs of the worker (Griffin, 2013).
Challenges of Managing a Mixture of Temporary and Permanent Workers
Managing a mixture of permanent and temporary employees in an organization is a big challenge for HR managers. First, it is difficult to balance the compensations and salaries of such a labor force without making one group feel inferior. Permanent workers expect higher salaries and additional work benefits which they must have. On the other hand, temporary employees will get lower compensation and minute or no work benefits in the same organization. It is natural that temporary employees would feel inferior as they are expected to perform well, and there is no proper compensation to them as they are a temporary staff. Organizations with such a mixture will spend approximately $15.00 less money for temporary workers (Griffin, 2013).
Secondly, managing such a mixture of employees will create a challenge of creating workable teams in organizations. Workers will not feel at the same level, and it is not possible to have functional groups. The permanent employees may feel more qualified and not willing to work with the temporary workers. On the other hand, temporary workers are not entirely committed to the organization, and they may also be unwilling to work in teams.
In conclusion, it is clear that the temp-to-perm policy of hiring has some limitations for managers of organizations and it implies that the decision to adopt the policy should not be based on the merits only. For job seekers, a temp-to-perm position offers some advantages and disadvantages that they must carefully examine. If advantages out-weigh limitations, then such a position is attractive. Finally, using the system has fewer challenges when managing workers as compared to a mixture of temporary and permanent workers.
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