Everyone knows that to succeed in business, you need to earn more than you spend. Unfortunately, this bit of knowledge is an oversimplification, and it has left plenty of people assuming that any cost-cutting measures are good for business. That’s simply not true.
You wouldn’t skimp on the materials you use, because cheap materials make cheap product. The same can be said for employees. As a Chicagoland temp agency, we know the less you pay your temporary employees, the less you can expect to get out of them.
Higher Productivity
Most employees will only work as hard as they feel they are being valued to work. By offering a low wage, you send a clear message that you place a low value on the work they do. A temporary employee may accept your low pay, because they need the work, but they often do so with the understanding that they will put in only enough effort to match that pay.
When you offer your temporary workers more than expected, it sends the message that you value those employees, you value the work they do, and you value the skills they bring to your company. In response, those employees will put in additional effort whenever they can.
Higher Retention
It’s a safe bet you’re not the only company hiring temp workers. If your temporary hires can earn more somewhere else, they’re going to jump ship the first chance they get. Compensate them appropriately for the work they’re doing, and there’s a much better chance they’ll stick around until the work is finished.
If you’re like most companies, you use temporary hiring to evaluate workers for potential permanent positions. This can save you the hassle of a long application process and reduce the risk of a bad fit. The more valued (and well compensated) your temporary hires feel, the more likely they’ll accept a longer position if asked.
Higher Satisfaction
Never underestimate the value of employee satisfaction. In fact, when it comes to hiring and keeping the best employees, job satisfaction is one of the biggest factors in your company’s success.
Your temp hires will probably work for many other companies in your region. If they felt valued and well paid for their efforts, they’re going to let others know. If they didn’t, they’ll let them know that too. The next time you need to bring on new employees, whether temporary or permanent, your candidate pool will be exactly those people your former temp hires have been talking with. Compensating your temporary employees well and treating them with respect will quickly earn your company a reputation as a great place to work.
For assistance determining the best price to offer your temporary hires, or to get started building your temporary workforce, contact an Alternative Staffing specialist today.
