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Now is the time of year many businesses hire seasonal employees. But what makes them different from temporary employees?
As we move into the busiest shopping season of the year, your small business may need to take on temporary or seasonal employees to keep up with high customer demands. While both of these employees can help your business during peak seasons, there are differences between these classifications that may make a difference to your business.
Temporary Employees
Definition
Also known as “temps,” temporary employees are usually hired to cover for absent employees or to fill gaps in a workforce. During peak seasons, you may need to hire temp workers to ensure all bases are covered or to cover an employee who may be on a leave of absence (because of maternity leave or illness).
Hiring Practices
You can employ temps yourself or through a staffing agency. If you do use a staffing agency, the workers do not technically work for you. Instead, they are on lease with the company, and you must pay the agency fees for placement. Temp workers can be hired for full-time or part-time work, but they are not often eligible for benefits. Sometimes businesses will hire temp workers for permanent employment if they turn out to be a good fit. The industries which often hire temp workers are healthcare, IT, clerical, and labor.
Pros:
- Fill workplace gaps
- Can fill permanent positions
Cons:
- Staffing agency fees
- Few or no employee benefits
Seasonal Employees
Definition
Seasonal employees are often those employees that are brought on to a business to help during specific busy seasons, like the upcoming holiday shopping season. Retail, sales, and shipping companies often rely on seasonal hires.
Hiring Practices
Seasonal employees are most often hired on a part-time basis, which reduces payroll costs. Seasonal workers are also often expected to work irregular hours, like very early or late shifts, depending on the business’s needs. When you hire a seasonal worker, however, you still need to meet minimum wage requirements and follow seasonal employment labor laws.
Pros:
- Lower payroll costs
- Less risk in hiring for short-term
- Provides you with a flexible workforce
Cons:
- Less time to train your employees, who often start right away
- Employees hired for a limited period may be uncommitted to the company
- Employees may also lack company loyalty
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