How Temp-to-Hire Helps Address Seasonal Peaks in Warehouse Staffing

If you manage a warehouse or another business with seasonal peaks, you face a staffing conundrum. You need to hire enough staff to fill orders efficiently during the peak season, but you won’t have enough work for all that extra personnel the rest of the year. It’s often hard to find people who are interested in temporary roles. 

Fortunately, you might have an option that encourages more workers to apply for seasonal work: Temp-to-hire. This staffing method tells workers that while you’re only offering temp work for now, you might hire them for a long-term position later. 

Temp-to-hire is a great choice for many situations as long as you’re planning to keep at least some of your temp employees on. Here’s why:

1. There’s No Hard Commitment

Temp-to-hire roles don’t carry the same commitments and legal obligations as long-term roles. You won’t have as much paperwork to fill out before or after the season ends. 

Your job posting tells job seekers there’s a potential opportunity for a long-term role, but it doesn’t require you to commit until you know which employees you want to keep. There’s no expectation that any given temp-to-hire employee will stay on after the peak season ends.

2. It’s Cost-Effective

Temporary employees can be hired either as independent contractors (1099) or through a staffing firm. If you hire them as independent contractors, you won’t need to pay benefits or have taxes withheld for them. If you hire them through a staffing firm, the staffing firm likely does their tax withholding and potentially offers them benefits. That means you do not have to worry about these costs during their temporary employment (or afterward, in the case of health insurance).

Many companies find that the onboarding process for a temp employee is simpler. That means you can save money by getting staff ready to work sooner.

3. It Encourages More Job Applicants

Temp-to-hire job listings sometimes attract more applicants than standard temp listings. According to Bureau of Labor Statistics data, only 4.3% of U.S. workers hold a contingent job as their primary role. While some workers do prefer temp work and others are willing to work temp jobs in between long-term ones, many are unlikely to apply unless they see a chance for a future at your company. 

Telling job applicants upfront that there may be an opportunity for long-term work expands your reach to some job seekers who are looking for a more stable role. You won’t get as many applicants as you would for a direct hire role, but it will likely still be more than you’d get for a regular temp job.

4. It’s More Honest Than Direct Hiring

Temp-to-hire is also a more honest approach than hiring a lot of “permanent” employees when you know you’re going to let some of them go. If you’ve ever been laid off from a “permanent” job you’d just started or known someone who had that experience, then you know how devastating it can be. 

It’s much more fair to the employees if you set realistic expectations going into the role. Employees will appreciate the honesty, and you’ll be able to maintain a better reputation as an employer.

5. It Promotes Top Performance

Temps who are looking for long-term employment may be more motivated to do their best work if they think you might hire them after the season ends. While a temp-to-hire role might not be quite as motivating as a long-term role — since there’s no guarantee, the employee will likely continue looking for other opportunities — it does provide more of an incentive than a standard temp role.

6. It Saves Your Team Time

A temp agency can deal with the employees’ payroll, tax withholding, and benefits until you know which ones you want to offer a long-term position. Your accounting and HR staff won’t have nearly as much paperwork to deal with.

What’s more, the temp agency can also help you with the initial recruiting and hiring process. An established staffing agency like LG Resources likely has a large pool of candidates and experience helping thousands of employers find the best possible candidates, so they’re well-equipped to handle the process efficiently and save your internal team time.

Need Help With Temp-to-Hire Staffing?

LG Resources helps employers find excellent employees for temp-to-hire, temp, and direct-hire roles. Warehouse and general labor staffing are among our specialties.

We use comprehensive screening processes to make sure you get top-quality candidates. Request temp-to-hire warehouse employees from LG Resources today.