Question

Pros and cons of switching to a temp labor agency from a managerial accountant standpoint? BE CREATIVE.

Answer 1

Why companies switch to temporary labor agency?

a) Due to abseentism of employees

b) Unexpected demands because of some special project

Benefits of switching to a temporary labour agency as follows:-

1. Flexibility:- Due to flexible work arrangements, employers need to stay current with the needs of today’s work force.

2. Evaluation of worker without commitment:- Based on your evaluation or preferences, you can employ a temp for a designated short term or, if desired, offer a full-time position to a worker who suits your business.

3. Saving of time and time:- The cost of hiring temp workers is often cheaper than the cost of hiring permanent employees with benefits. When you employ an agency, it – not you – becomes the temp worker’s employer.   The agency is responsible for and bears the financial burden of recruiting, screening, testing and hiring workers; payroll expenses and paperwork; payroll.

Cons of switching to a temporary labour agency as follows:-

1. Morale Issues:- Morale and employee relations problems can arise when you have temps working alongside permanent employees for months, doing the same work and putting in the same hours, but not receiving the same benefits afforded their permanent employee coworkers.

2. Legal Concerns:-  There must be no doubt about the workers’ status and about the lack of eligibility for the benefits of permanent employees. And treat temp workers with the same respect and care you would for your permanent staff.

3. Safety Issues:- Certain types of jobs are inherently dangerous and require careful safety training. Studies show that frequency and severity rates of on-the-job injuries are significantly higher with temporary workers. No matter what a temp’s experience is, care must be taken to see that dangerous tasks are performed safely. Never assume a temporary worker is fully prepared to work unsupervised until you have taken the time to see that they can safely perform their work tasks.