- You are a senior manager at a growing business, and you are ready to add employees. Your HR manager has recommended a temp-to-perm policy. You know the advantages of this approach, but what might be some of the disadvantages?
The employers incur higher wage rates when they apply a temp-to-perm policy. They are likely to incur a 15%-20% more of the cost incurred to cater for the hourly salary. The employers who implement the policy are required to pay their tempt employees fair wages to avoid losing them to their competitors. They should also pay staffing agency fees at the same rate. The policy also may also necessitate employers to incur contract buyout fees. According to Kwon (2009, p. 124), companies may find a perfect fit with their temp employees and opt to keep them on staff for a permanent basis. They, as a result, pay the outstanding amount for the contractual period. The policy may also make it hard for the employers to build teams. Permanent employees may view tempts as individuals who lack value to the entire team. Permanent employees that are less motivated by their jobs may also view tempts as prospective threats. They, as a result, may not treat temp workers with much respect at the place of work. The overall effect will be a reduced productivity level at the workplace.
- Assume that you are a prospective job seeker (which you may very well be). What do you see as the advantages and disadvantages of taking a tempt-to-perm position? Under what circumstances are you likely to take a tempt-to-perm position?
According to my view, advantages of taking temp-to-perm position include the ability to study the requirements of the job before taking the permanent position. The employees hence will be in a position to evaluate the potential employer and the position that they are likely to hold if they take the job on permanent basis. The temp-to-perm positions will allow the employee to be more flexible and hence have enough time to carry out other personal responsibilities apart from employment. Employees are likely to have sufficient time for their families when in temp-to-perm position. The position also helps workers during career transitions as it gives an opportunity for employees to diversify from their traditional areas of practice and assume different roles that are not necessarily in line with their field of specialization. After being laid off, employees can secure positions with ease if they seek for tempt-to-perm positions. They hence manage to obtain employment that helps them to sustain their families after being laid off. Different circumstances like the need for diversification, need to balance personal life and work, need to have family and create enough time for them can contribute towards taking a tempt-to-perm position.
- What sorts of challenges are likely to confront a manager who supervises a mix of temporary and permanent employees? In what ways might these challenges differ if the temporary workers have been hired on a tempt-to-perm basis rather than on a strictly temporary basis?
The manager is likely to confront motivation issues in the company. If the company employs temporary employees that work together with permanent members of staff, it is likely to confront morale issues since it is probable that temporary workers will not be receiving equal benefits as the permanent workers (Kwon, 2009, p. 133). The level of benefits received by the temporary workers is less even though they put in the same efforts, working hours and the same work. The manager is also confronted with the challenge that temporary employees are less likely to be included in various company events and hence minimize the chances of motivating them. The manager is also likely to face the challenge of reliability as temporary employees are not highly reliable, and hence the manager confronts the challenge when allocating demanding duties. The challenges may differ after hiring temporary workers on a tempt-to-perm basis rather than on a strictly temporary basis in that the employees will view the position as a potential that will lead to full-time employment. The employees will hence treat the temporary job as long-lastingto increase the chances of making the position a permanent one.
Kwon, H. (2009). Temp-to-Perm Transition?: Recent Legislation on Fixed-Term Employment and Firm’s Choice. Labour Issues in Korea, 7, 100-41.