Temporary staffing or Recruiting? Identify the Best Strategy for Your Business.

Temporary staffing or recruiting. Which option is truly the most cost-effective? Depending on your company’s strategic goals, needs, and future, the answers can certainly differ. But what is the difference between temporary staffing and recruitment – and how do you identify which option suits you best? We clarify the concepts and list the advantages. 

What does temporary staffing involve? 

Temporary staffing means hiring a company to manage and take charge of the entire recruitment process including employment. This encompasses everything from identifying suitable candidates to overseeing the hiring process and handling payroll administration. In this scenario, the employee becomes an employee of the staffing company.

On the other hand, in a standard recruitment process, you or a recruitment agency identify fitting candidates, conduct interviews, and oversee the onboarding process. In this case, the employee is directly hired by your company. 

Sectors that embrace staffing  

There are many different industries that opt for staffing instead of direct employment. The most common scenario is that staffing companies are utilized in industries such as manufacturing, construction, warehouse and logistics, the service sector, and healthcare and social care. 

 The best option for your company, therefore, depends partly on the sector – but also on your internal needs and unique requirements.

Benefits of Temporary Staffing

Hiring temporary staff through an agency is an excellent choice when you require short-term employees, especially during peak workloads or when regular staff is on sick leave or parental leave. Here are some additional benefits: 

1. Flexibility:Hiring temporary staff allows you to adjust your workforce according to demand, smoothly increasing or decreasing the number of employees based on changes in your operations.
2. Lower Costs: It can also be a more cost-effective option as it doesn’t entail the same long-term expenses for insurance, vacation pay, and other benefits.
3. Optimized Resource Allocation:Temporary staffing enables you to concentrate on your core business and allocate resources efficiently, without worrying about recruitment processes and payroll administration.
4. Access to Specialized Expertise: It can also streamline the process of selecting the right expertise for each specific requirement and offer quick access to specialized skills.

Benefits of Traditional Recruitment  

Recruiting new employees is a favorable option when you have a long-term need for fresh staff and the capability to oversee the hiring process yourself. Here are some additional benefits:  

1. Continuity and Loyalty:By hiring an employee, you can offer them secure employment, increasing the likelihood of long-term commitment and active contribution to the company’s overarching goals and visions.
2. Long-Term Cost Savings: Despite temporary staffing often being more cost-effective in the short term, it can turn costlier in the long run due to employee retention and renegotiating new agreements. 
3. Enhanced Engagement: An employee on a long-term contract is more likely to fully engage in their job and role within the company, leading to increased productivity and performance over an extended period. 
4. Strengthened Work Culture:Recruiting a new team member can also foster workplace diversity and enhance company culture by introducing fresh ideas, perspectives, and experiences.

Recruitment or Temporary staffing? Identify the Most Profitable Option for your business.  

To determine the best fit for your company, you first need to identify your current and future needs and circumstances. Below, Johan Bäckström, Senior Account Manager at Oddwork, has provided a couple of questions that can guide you toward the answer: 

• What’s your current plan for resources, especially when it comes to potential challenges in your operations?
• Are you in need of a larger workforce, and do you need it quickly?
• Is this need going to be for the long haul or just a short-term fix?
• Are you looking to boost your capacity temporarily while keeping overhead costs steady?
• What’s your financial status right now, and how are you weighing the potential risks tied to recruitment expenses down the line?