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Temp-to-Hire Insights Heading into 2023


New to temp-to-hire? It’s time you learn more about it. We’re seeing employers in a wide range of industries use temp-to-hire arrangements to tackle budget uncertainty, employee burnout, and employment regulations as 2023 approaches. Here’s how:

Temp-to-Hire Can Ease Uncertainty

It’s still a job candidate market, but inflation and threats of a recession are looming. Most employers remain understaffed and are scrambling to fill positions, while those with their eye on the economy question whether it’s time to tap the breaks on hiring.  

“Temp-to-hire is a great strategy for times like these because it allows you to fill positions relatively quickly and easily without the long-term commitment that comes with direct hire,” says Stephanie Grubbs, Regional Managing Director of The HT Group General Staffing Division. With burnout at an all-time high and full-time employees either “quiet quitting” or resigning altogether, supplementing teams with temp-to-hire workers can ease the strain on staff while budgets for 2023 are being set.

But You Need to Pay Well

A recent survey by the American Staffing Association (ASA) found that 58% of employed U.S. adults expressed concern that their paycheck is not enough to support themselves or their families. This number was even higher for Hispanic workers (69%) and parents with children under 18 (66%). About 40% of employed Millennials and 36% of Gen Z plan to look for higher-earning jobs in the next six months.

Better pay is the top reason workers quit, so competitive compensation is critically important. It doesn’t matter if you’re hiring direct, temporary, or temp-to-hire: you need to pay well. Time after time, when employers come to us wondering why they can’t find the employees they need, it’s usually because they’re not offering competitive pay.

Temp-to-Hire Can Be Ideal for Candidates, Too

Don’t feel guilty about fearing commitment: Many workers have that fear, too. “The try-before-you-buy strategy can be a win-win for both sides as long as you follow best practices,” Grubbs says.

Those best practices include setting expectations and communicating them effectively—workers want to know the potential timeline for moving from temp to permanent, for instance. Good benefits go a long way, too. Working with a staffing firm like The HT Group that offers their workers benefits like health insurance is important.  

Flexibility may be another way to find top talent through temp-to-hire. As we head into the holiday season, many workers with full-time jobs often pick up an extra seasonal job to make ends meet. ASA found that this year will be no different, with 27% of employed workers planning to start a second job to supplement their incomes. If you can accommodate workers with nontraditional schedules like these, you may be able to win them over for a permanent position.

Avoid Independent Contractor Pitfalls

Misclassifying workers as independent contractors remains high on the radar for tax-collecting entities like the IRS and Texas Workforce Commission. The construction industry is a big culprit in Texas, but the issue is seen in every sector.

If you control when, how, and where workers do their job, classifying them as independent contractors can be risky (more on the rules here). In these cases, employing workers with the help of a staffing company through temporary, contract, or temp-to-hire arrangements can remove that risk without a permanent employment commitment.

There’s plenty of uncertainty looking toward the next year of recruiting. Temp-to-hire can be a great way to keep forward momentum. Contact our recruiters to learn more.