Does Temp-To-Hire Staffing Make Sense For Your Warehouse?

At first glance, temp-to-hire staffing might seem like a great idea for every warehouse role. It allows you to avoid committing to new employees until you’ve gotten to see their skills, work ethic, and attitude in action. You may even wonder why every employer isn’t hiring this way.

However, there are some downsides to the temp-to-hire approach. You could be missing out on some great candidates who find other opportunities or never even bother to apply. You’ll also have to pay temp agency contract fees that add to the overall cost of hiring.

Different hiring strategies are better options for different jobs, situations, and organizations. Below, we go into more detail about the pros and cons of temp-to-hire and when it makes sense to choose this hiring route.

The Pros of Temp-to-Hire

1. You can gather more information before offering a long-term role.

No matter how good your screening and interviewing processes are, you don’t know for sure how an employee will perform until they’re in the role. Temp-to-hire staffing gives you a trial period where you can see how an employee works before committing to long-term employment.

2. You can reduce the financial risk of a bad hire.

If you hire an employee who turns out to be a poor fit for your company, you don’t have to deal with all the expenses associated with a layoff. You can simply allow the trial period to end without offering a long-term role. Depending on the role, you might also be able to avoid onboarding and its associated costs until you know whether you want to hire the employee for a long-term role.

The Cons of Temp-to-Hire

1. Top candidates may be less likely to apply.

While some workers prefer frequent job changes for variety’s sake, the majority have a strong preference for stability, especially if they have a family to support. A temp-to-hire role doesn’t offer the guaranteed stability most workers want. Many won’t bother to apply to temp or temp-to-hire roles, especially if they have in-demand experience or skills that are likely to bring them more direct-hire opportunities.

2. Your temp might leave before the trial period ends.

As we said above, most employees prefer stable direct-hire roles, so they may continue seeking long-term opportunities even after starting temp-to-hire positions. If your temp-to-hire employee finds a better opportunity, they’ll take it. In other words, you’re more likely to lose great employees to your competitors.

3. You’ll have to pay ongoing temp agency contract fees.

Temp-to-hire often costs more than hiring the same employee directly. In addition to recruitment fees, you will likely need to pay ongoing temp agency fees throughout the trial period. You might save money on employees you decide not to hire after all, but you’ll pay more for the ones you do.

4. You have less workforce stability and lower morale.

Temp-to-hire is often associated with lower morale. With this hiring approach, you’re likely to have more turnover, which leads to less stable working relationships between coworkers and a fluctuating company culture. Workers who haven’t seen commitment from their employer may also be less committed to their employer in turn.

When Temp-to-Hire Staffing Makes Sense

Temp-to-hire staffing is often a great fit for companies with seasonal spikes in staffing needs. You can hire more staff during the peak season, then extend offers to high-performing temps who are interested in long-term work after the season ends.

This staffing approach may work better when there are qualified workers than jobs in your area. More job seekers are likely to be open to temp-to-hire roles when there aren’t a lot of direct-hire opportunities. If you’re trying to hire in an economy with plenty of jobs, temp-to-hire is less likely to work well.

Need Help With Light Industrial Warehouse Staffing?

LG Resources can help with your light industrial and warehouse staffing needs throughout the U.S. We offer temporary, temp-to-hire, and direct-hire recruiting and staffing services. 

Our in-depth screening processes will help you find the best possible candidates for the job. Contact us today to request a great new employee.