Temporary employment

TEMPORARY EMPLOYMENT PRACTICES 1

TEMPORARY EMPLOYMENT PRACTICES

Silvia Wells

Bellevue University


Executive Summary

This paper explores the practice of using temporary workers to fill vacancies for short

periods of time, for a special project, or for fluctuations in work volume. In addition, people’s

perception of the temporary worker, their loyalty, and learning curve is explored. The benefit of

using temporary or contract employees versus permanent workers includes reduced costs for the

company and flexibility for both the company and the worker.

Different types of employment suit different people in all walks of life. There are the

people that may have been displaced as a result of the economy and seeking temporary work

until the next ideal permanent job becomes available. This became a realistic avenue for some to

take such as the temporary employment boom in Silicon Valley. Some retired seniors and baby

boomers with a wealth of experience and intellectual capital have also become a great source of

potential workers. Still others prefer the freedom short term employment offers such as lack of

long term commitment. This is especially important should one get hired for a position that does

not work out for the worker or the employer. The worker can feel free to walk away, and the

employer is not committed to breaking the contract without consequence or much expense.

.


Introduction

There are good reasons to believe that the nature of organizations and the individual

experience of work have undergone important changes. A different type of employment exists

besides the traditional work relationships in the perspective of regular full time or regular part

time employment, (Camerman, Cropanzano & Vandenberghe, 2007). New types of employment

contracts bring about new kinds of relationships between organizations and employees. More

specifically, temporary employment is characterized by a twofold relationship with the

temporary agency, and a temporary relationship with the client organization. The temporary

employee could at times be caught in the middle of goal conflicts that could affect his or her

work relationship with the organization.

This paper will explore the pros and cons of temporary employment practices for the

employers who provide these types of jobs, as well as the individuals seeking and working in the

temporary or short term employment field. Temporary employment is a fast growing work

option; however, there are both dangers and opportunities in the growing number of this type of

employment practice. In a typical ideal scenario, temporary employees provide the organizations

doing the hiring with people willing to fill in for others on a short term basis or working on a

specific project, all while enjoying lower costs. One example of lower costs would include such

expenses as providing fringe benefits like health insurance, stock options, vacation and sick

leave. The organization is also provided with increased flexibility of keeping the temporary

employee if that person is deemed compatible and the best fit for the job. The company may

also release the employee of their duties without any cost or contract commitments to fulfill. In

turn, the temporary worker has the opportunity for a variety of work, flexibility, as well as


personal growth. The benefits to the organization can prove elusive if temporary employees are

less skilled or not committed to their work, (Camerman, et. al, 2007).

Background

The standard employment relationship has been characterized by full-time and in some

instances part time workers for an indefinite period of time. An organization’s use of temporary

external workers as well as the kind of work performed has also changed. Contrary to what has

been perceived in the past, the kind of work performed by temporary workers no longer consists

of unskilled clerical tasks; many of the temporary jobs being filled are those in professional

fields such as nursing and accounting. As the use of a temporary work force continues its

upward trend, it is important to explore why organizations are using these types of workers,

(Camerman, et. al (2007).

Temporary jobs typically are known to be deficient in job security, benefits, as well as

the possibility for advancement. These are things that are characteristically available to regular

or permanent workers. The danger of the extensive use of temporary workers may lead to the

creation of two classes of employees: permanent workers which have reasonably secure higher

paying regular jobs versus the lower paid workers without benefits. The practice of hiring

temporary worker may increase inequality which may result in consequences such as lowered

productivity, (Davis-Blake, Uzzi, 1993). This may also be due to mundane assignments or

unrewarding work typically assigned to temporary workers. The temporary jobs are frequently

filled with members of groups that have little power in organizations such as women, non-white,

and the very young. Temporary workers are typically paid less than their permanent employee


counterparts. Although many people enjoy the alternative work arrangement with flexible

schedules, some do not actually have that choice. With today’s depressed economy and major

unemployment across the nation, the practice of hiring temporary workers to complete projects

and fill jobs previously held by full time workers has increased tremendously. Another increase

in growth may occasionally be due to the need for adding temporary workers due to large events

and occasions such as the Olympics, holiday rush, or new technology operations.

Silicon Valley

California ranks high in temporary employment, and specifically in places such as Silicon

Valley. As a center of innovation and production of high tech global industries in both

manufacturing and service fields, Silicon Valley showed the potential of flexible work and new

use of technology and networking. Silicon Valley is a leader and innovator in the United States

and around the world. The city became the new industrial region that characterizes the

emergence of the Information Age. The temporary and subcontracted labor markets became

more widespread in the Silicon Valley over the past few years. With the growing and rapid

change in technology, production and the highly competitive globalized markets, employment

agencies were raised to premium flexibility. In the effort to stay competitive in this rapidly

changing field, Silicon Valley’s observance of changes in the employment area became the

direction in which employment relationships caused change elsewhere, (Carnoy, Castells,

Benner, 1997).

Flexibility

Diverse forms of flexibility in employment that have expanded over the past few years

include various categories of the temporary employment field. For some workers, the weak


connection between the employer and employee not only means financial insecurity but also

lower wages. Temporary contracts are inclined to make workers more vulnerable to fluctuations

in the economy. However, not all non-standard contract or temporary jobs are low paid or

singled out as having poor working conditions. Some of these types of jobs, along with the

increased risk provide new opportunities. Older workers, specifically seniors, boomers and

retirees have incredible experience to offer and often do not have the need for benefits (Koff,

2010).

In examples such as Silicon Valley, there is a small group of people who thrive under

non-traditional contracts. Some seek out these contracts due to the flexibility they offer. This

represents a new form of entrepreneurship in which individuals market themselves to employers.

This type of self marketing, referred to as impression management is described as a goal-oriented

conscious or unconscious effort which people use to influence the perception of others about

them, and achieved by controlling and regulating their image. As with any entrepreneurial

attempt, there is risk, however it provides great returns for the contract/temporary worker, (De

Cuyper, De Witte, 2010).

Conditional employment such as that of temporary work consists of two basic

characteristics: the lack of expectation of continuing employment, and variability in number of

hours, primarily in the unpredictability factor. In addition, a growing number of studies suggest

that job insecurity associates with poorer well-being among permanent workers, but job

insecurity is a far less problematic issue among temporary workers, (De Cuyper, et. al, 2010).

Furthermore, most part time jobs would not be included in this definition because they typically


consist of a stable number of hours per week and in longevity in term. Likewise, the self-

employed would not be part of the conditional employment workforce, (Carnoy, et. al, 1997).

Temporary employment is typically seen as a stepping stone for a job that may transition

into permanent employment. This transitory career stage may show no serious consequences as

far as strain or the best possible performance. On the contrary, temporary workers who are very

motivated and driven to achieve a permanent position may excel at the temporary work site to

show their true potential of the type of employee they could be if they were to be hired on as a

permanent employee. In addition, the expectation of possible continued employment whether in

the continued capacity as a temporary worker or a move into a permanent position; it is enough

of an incentive for increased productivity, (De Cuyper, et. al, 2010). The idea of anticipated job

security is a good motivator.

Flexibility is a term used when describing non-standard contracts. Flexible employment

is often voluntary at all skill levels and different jobs. In addition, even if a job is not entirely

voluntary, it may provide the potential of greater flexibility without the significant social costs

implied where a worker may be required to take an unstable, low paying job. Flexible

employment is described as individuals hired through temporary agencies; those hired directly by

companies on a temporary, contract or specific project basis; part-time employees; some self-

employed persons; the employees hired on an informal basis such as day laborers and home-

based workers; and the subcontractors who are primarily controlled by the contracting company,

(Carnoy, et. al, 1997).

In Silicon Valley, the most common form of temporary employment is in the form of

flexible employment through employment agencies. According to the Bureau of Labor


Statistics, 1995, employment agencies have experienced tremendous growth since the 1980s,

while total employment has slowed. In Silicon Valley, many temporary workers are hired

directly by employers instead of through the temporary help service agencies.

Part-time employment is classified in two forms: voluntary and involuntary employment.

This form of employment has also experienced a tremendous growth but this has been primarily

due to involuntary part-time employment. The pattern of growth and decline is concurrent with

national figures.

The self employed also rose significantly. According to the United States 1990 Census,

over 52,000 in Santa Clara County were self employed. In the four largest towns in Silicon

Valley, the number of self-employed increased over 44 percent between the late 1980s and mid

1990s, (Carnoy, et. al, 1997). With the increase in loss of jobs over recent years, entrepreneurs

have turned to self employment.

Solution

The best practice for temporary agencies in placing workers may be to seek workers who

are flexible, willing to work a variety of jobs, and of course, find the right person for the job.

The biggest challenge for temporary agencies appears to be that of finding the right worker with

the best skill sets for the specific job with its variance from job, company and worker.

Temporary workers are typically less likely to be threatened by change than permanent

workers because they have less invested in the company. In addition, perceived productivity of

the temporary workers appears to be a bit below that of the permanent workers. However, this

does not mean below the learning curve. Temporary workers typically start at roughly 80

percent of the learning curve but within three months reach 100 percent. Since temporary


workers may aspire to become permanent workers, they tend to strive to prove themselves as

competent as possible. Companies use try-out employment when workloads fluctuate, (von

Hippel, Mangum, Greenberger, Skoglind, 1997). Thus, when a new project arises, a question

may be: is this a permanent position or a temporary project job?

There is a perception that temporary workers are typically not as productive as the

permanent workers. Others suggest that people take temporary jobs because they cannot find

permanent ones. Still others believe temporary workers require more training. When temporary

workers are trained and supervised properly, temporary workers are just as productive as

permanent employees. There is also an advantage held by companies who hire temporary

employees where there is a high unemployment rate.

Conclusion

Temporary agencies adopting the practice of structuring assignments that provide a

variety of tasks and skill sets that fit the job are a good step toward increased worker

commitment and satisfaction while meeting client needs. Increasing training and tracking

development will also enhance the ability of temporary agencies to make more qualified

placements.

Pros and cons of temporary work and as varied as the individual and their current

situation and needs for seeking temporary jobs. The success of the temporary worker’s job

performance falls on the individual. However, the employer’s ability to develop human resource

practices to attract, retain and motivate temporary employees becomes important and can be

accomplished through policies including training and development, career paths and rewards.

Organizations wanting only minimal use of temporary workers may establish a relationship with


the temporary agency and with specific employees so they can be called upon as needs arise.

This practice sets up a pool of stable temporary workers that are adequately trained with

knowledge of the organization’s practices.

Temporary workers should be aware and capable of dealing with job loss and uncertainty

associated with temporary employment. Individuals must view temporary positions as

opportunities to develop their skills or as tryouts for permanent employment opportunities. The

idea that permanent employment is possibly the most traditional form job security is definitely

not the only way to build a satisfactory career. There are an abundance of new career models

that no longer rely on the notion of job security viewed in the traditional form, (De Cuyper, et. al,

2010). There are a growing number of highly skilled workers who voluntarily choose a form of

non-traditional employment and often enjoy the opportunities of temporary employment.


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