Temp-to-Hire Improves Cost, Retention and Selection

April 2, 2001 (PLANSPONSOR.COM)- In today's tight labor market, the vast majority of employers are turning temporary help into full-time workers, according to a new survey.

Over 80% of employers hire staff on a temp-to-hire basis, according to the survey by recruitment agency Accounting Principals. The practice lowers recruitment costs and ensures the right fit between employer and employee, thereby increasing staff retention.

More than half of respondents said temp-to-hire professionals were eventually added to their payrolls despite no plans to increase permanent staff. On average, these companies made unplanned additions of two temporary employees to their full-time payroll in 2000.

Reasons for temp-to-hire

Employer respondents cited a number of reasons to take the temp-to-hire route, including:

  • 90% – better able to assess employees’ performance prior to permanent hire
  • 86% – better able to determine the right fit between their company and the new hire
  • 71% – an ability to determine the fit between themselves and prospective employees
  • 69% – able to evaluate employees’ performance without losing out on productivity
  • 28% – reduces time taken to find the right permanent employees
  • 19% – reduces the turnover of newly hired employees