Download - Temporary employment
TEMPORARY EMPLOYMENT PRACTICES 1
TEMPORARY EMPLOYMENT PRACTICES
Silvia Wells
Bellevue University
TEMPORARY EMPLOYMENT PRACTICES 2
Executive Summary
This paper explores the practice of using temporary workers to fill vacancies for short
periods of time, for a special project, or for fluctuations in work volume. In addition, people’s
perception of the temporary worker, their loyalty, and learning curve is explored. The benefit of
using temporary or contract employees versus permanent workers includes reduced costs for the
company and flexibility for both the company and the worker.
Different types of employment suit different people in all walks of life. There are the
people that may have been displaced as a result of the economy and seeking temporary work
until the next ideal permanent job becomes available. This became a realistic avenue for some to
take such as the temporary employment boom in Silicon Valley. Some retired seniors and baby
boomers with a wealth of experience and intellectual capital have also become a great source of
potential workers. Still others prefer the freedom short term employment offers such as lack of
long term commitment. This is especially important should one get hired for a position that does
not work out for the worker or the employer. The worker can feel free to walk away, and the
employer is not committed to breaking the contract without consequence or much expense.
.
TEMPORARY EMPLOYMENT PRACTICES 3
Introduction
There are good reasons to believe that the nature of organizations and the individual
experience of work have undergone important changes. A different type of employment exists
besides the traditional work relationships in the perspective of regular full time or regular part
time employment, (Camerman, Cropanzano & Vandenberghe, 2007). New types of employment
contracts bring about new kinds of relationships between organizations and employees. More
specifically, temporary employment is characterized by a twofold relationship with the
temporary agency, and a temporary relationship with the client organization. The temporary
employee could at times be caught in the middle of goal conflicts that could affect his or her
work relationship with the organization.
This paper will explore the pros and cons of temporary employment practices for the
employers who provide these types of jobs, as well as the individuals seeking and working in the
temporary or short term employment field. Temporary employment is a fast growing work
option; however, there are both dangers and opportunities in the growing number of this type of
employment practice. In a typical ideal scenario, temporary employees provide the organizations
doing the hiring with people willing to fill in for others on a short term basis or working on a
specific project, all while enjoying lower costs. One example of lower costs would include such
expenses as providing fringe benefits like health insurance, stock options, vacation and sick
leave. The organization is also provided with increased flexibility of keeping the temporary
employee if that person is deemed compatible and the best fit for the job. The company may
also release the employee of their duties without any cost or contract commitments to fulfill. In
turn, the temporary worker has the opportunity for a variety of work, flexibility, as well as
TEMPORARY EMPLOYMENT PRACTICES 4
personal growth. The benefits to the organization can prove elusive if temporary employees are
less skilled or not committed to their work, (Camerman, et. al, 2007).
Background
The standard employment relationship has been characterized by full-time and in some
instances part time workers for an indefinite period of time. An organization’s use of temporary
external workers as well as the kind of work performed has also changed. Contrary to what has
been perceived in the past, the kind of work performed by temporary workers no longer consists
of unskilled clerical tasks; many of the temporary jobs being filled are those in professional
fields such as nursing and accounting. As the use of a temporary work force continues its
upward trend, it is important to explore why organizations are using these types of workers,
(Camerman, et. al (2007).
Temporary jobs typically are known to be deficient in job security, benefits, as well as
the possibility for advancement. These are things that are characteristically available to regular
or permanent workers. The danger of the extensive use of temporary workers may lead to the
creation of two classes of employees: permanent workers which have reasonably secure higher
paying regular jobs versus the lower paid workers without benefits. The practice of hiring
temporary worker may increase inequality which may result in consequences such as lowered
productivity, (Davis-Blake, Uzzi, 1993). This may also be due to mundane assignments or
unrewarding work typically assigned to temporary workers. The temporary jobs are frequently
filled with members of groups that have little power in organizations such as women, non-white,
and the very young. Temporary workers are typically paid less than their permanent employee
TEMPORARY EMPLOYMENT PRACTICES 5
counterparts. Although many people enjoy the alternative work arrangement with flexible
schedules, some do not actually have that choice. With today’s depressed economy and major
unemployment across the nation, the practice of hiring temporary workers to complete projects
and fill jobs previously held by full time workers has increased tremendously. Another increase
in growth may occasionally be due to the need for adding temporary workers due to large events
and occasions such as the Olympics, holiday rush, or new technology operations.
Silicon Valley
California ranks high in temporary employment, and specifically in places such as Silicon
Valley. As a center of innovation and production of high tech global industries in both
manufacturing and service fields, Silicon Valley showed the potential of flexible work and new
use of technology and networking. Silicon Valley is a leader and innovator in the United States
and around the world. The city became the new industrial region that characterizes the
emergence of the Information Age. The temporary and subcontracted labor markets became
more widespread in the Silicon Valley over the past few years. With the growing and rapid
change in technology, production and the highly competitive globalized markets, employment
agencies were raised to premium flexibility. In the effort to stay competitive in this rapidly
changing field, Silicon Valley’s observance of changes in the employment area became the
direction in which employment relationships caused change elsewhere, (Carnoy, Castells,
Benner, 1997).
Flexibility
Diverse forms of flexibility in employment that have expanded over the past few years
include various categories of the temporary employment field. For some workers, the weak
TEMPORARY EMPLOYMENT PRACTICES 6
connection between the employer and employee not only means financial insecurity but also
lower wages. Temporary contracts are inclined to make workers more vulnerable to fluctuations
in the economy. However, not all non-standard contract or temporary jobs are low paid or
singled out as having poor working conditions. Some of these types of jobs, along with the
increased risk provide new opportunities. Older workers, specifically seniors, boomers and
retirees have incredible experience to offer and often do not have the need for benefits (Koff,
2010).
In examples such as Silicon Valley, there is a small group of people who thrive under
non-traditional contracts. Some seek out these contracts due to the flexibility they offer. This
represents a new form of entrepreneurship in which individuals market themselves to employers.
This type of self marketing, referred to as impression management is described as a goal-oriented
conscious or unconscious effort which people use to influence the perception of others about
them, and achieved by controlling and regulating their image. As with any entrepreneurial
attempt, there is risk, however it provides great returns for the contract/temporary worker, (De
Cuyper, De Witte, 2010).
Conditional employment such as that of temporary work consists of two basic
characteristics: the lack of expectation of continuing employment, and variability in number of
hours, primarily in the unpredictability factor. In addition, a growing number of studies suggest
that job insecurity associates with poorer well-being among permanent workers, but job
insecurity is a far less problematic issue among temporary workers, (De Cuyper, et. al, 2010).
Furthermore, most part time jobs would not be included in this definition because they typically
TEMPORARY EMPLOYMENT PRACTICES 7
consist of a stable number of hours per week and in longevity in term. Likewise, the self-
employed would not be part of the conditional employment workforce, (Carnoy, et. al, 1997).
Temporary employment is typically seen as a stepping stone for a job that may transition
into permanent employment. This transitory career stage may show no serious consequences as
far as strain or the best possible performance. On the contrary, temporary workers who are very
motivated and driven to achieve a permanent position may excel at the temporary work site to
show their true potential of the type of employee they could be if they were to be hired on as a
permanent employee. In addition, the expectation of possible continued employment whether in
the continued capacity as a temporary worker or a move into a permanent position; it is enough
of an incentive for increased productivity, (De Cuyper, et. al, 2010). The idea of anticipated job
security is a good motivator.
Flexibility is a term used when describing non-standard contracts. Flexible employment
is often voluntary at all skill levels and different jobs. In addition, even if a job is not entirely
voluntary, it may provide the potential of greater flexibility without the significant social costs
implied where a worker may be required to take an unstable, low paying job. Flexible
employment is described as individuals hired through temporary agencies; those hired directly by
companies on a temporary, contract or specific project basis; part-time employees; some self-
employed persons; the employees hired on an informal basis such as day laborers and home-
based workers; and the subcontractors who are primarily controlled by the contracting company,
(Carnoy, et. al, 1997).
In Silicon Valley, the most common form of temporary employment is in the form of
flexible employment through employment agencies. According to the Bureau of Labor
TEMPORARY EMPLOYMENT PRACTICES 8
Statistics, 1995, employment agencies have experienced tremendous growth since the 1980s,
while total employment has slowed. In Silicon Valley, many temporary workers are hired
directly by employers instead of through the temporary help service agencies.
Part-time employment is classified in two forms: voluntary and involuntary employment.
This form of employment has also experienced a tremendous growth but this has been primarily
due to involuntary part-time employment. The pattern of growth and decline is concurrent with
national figures.
The self employed also rose significantly. According to the United States 1990 Census,
over 52,000 in Santa Clara County were self employed. In the four largest towns in Silicon
Valley, the number of self-employed increased over 44 percent between the late 1980s and mid
1990s, (Carnoy, et. al, 1997). With the increase in loss of jobs over recent years, entrepreneurs
have turned to self employment.
Solution
The best practice for temporary agencies in placing workers may be to seek workers who
are flexible, willing to work a variety of jobs, and of course, find the right person for the job.
The biggest challenge for temporary agencies appears to be that of finding the right worker with
the best skill sets for the specific job with its variance from job, company and worker.
Temporary workers are typically less likely to be threatened by change than permanent
workers because they have less invested in the company. In addition, perceived productivity of
the temporary workers appears to be a bit below that of the permanent workers. However, this
does not mean below the learning curve. Temporary workers typically start at roughly 80
percent of the learning curve but within three months reach 100 percent. Since temporary
TEMPORARY EMPLOYMENT PRACTICES 9
workers may aspire to become permanent workers, they tend to strive to prove themselves as
competent as possible. Companies use try-out employment when workloads fluctuate, (von
Hippel, Mangum, Greenberger, Skoglind, 1997). Thus, when a new project arises, a question
may be: is this a permanent position or a temporary project job?
There is a perception that temporary workers are typically not as productive as the
permanent workers. Others suggest that people take temporary jobs because they cannot find
permanent ones. Still others believe temporary workers require more training. When temporary
workers are trained and supervised properly, temporary workers are just as productive as
permanent employees. There is also an advantage held by companies who hire temporary
employees where there is a high unemployment rate.
Conclusion
Temporary agencies adopting the practice of structuring assignments that provide a
variety of tasks and skill sets that fit the job are a good step toward increased worker
commitment and satisfaction while meeting client needs. Increasing training and tracking
development will also enhance the ability of temporary agencies to make more qualified
placements.
Pros and cons of temporary work and as varied as the individual and their current
situation and needs for seeking temporary jobs. The success of the temporary worker’s job
performance falls on the individual. However, the employer’s ability to develop human resource
practices to attract, retain and motivate temporary employees becomes important and can be
accomplished through policies including training and development, career paths and rewards.
Organizations wanting only minimal use of temporary workers may establish a relationship with
TEMPORARY EMPLOYMENT PRACTICES 10
the temporary agency and with specific employees so they can be called upon as needs arise.
This practice sets up a pool of stable temporary workers that are adequately trained with
knowledge of the organization’s practices.
Temporary workers should be aware and capable of dealing with job loss and uncertainty
associated with temporary employment. Individuals must view temporary positions as
opportunities to develop their skills or as tryouts for permanent employment opportunities. The
idea that permanent employment is possibly the most traditional form job security is definitely
not the only way to build a satisfactory career. There are an abundance of new career models
that no longer rely on the notion of job security viewed in the traditional form, (De Cuyper, et. al,
2010). There are a growing number of highly skilled workers who voluntarily choose a form of
non-traditional employment and often enjoy the opportunities of temporary employment.
TEMPORARY EMPLOYMENT PRACTICES 11
References
Bellerose, D. (2008, July). Temporary employees get reprieve. Sault Star, A.1.FRO-A1/ Front,
pp. 1-1. Retrieved from
http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/
348334368?accountid=28125
Camerman, J., Cropanzano, R., & Vandenberghe, C. (2007). The benefits of justice for
temporary workers. Group & Organization Management, 32(2), 176-207.
Retrieved from
http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/
203353123?accountid=28125
Carnoy, M., Castells, M., & Benner, C. (1997). Labour markets and employment practices in the
age of flexibility: A case study of silicon valley. International Labour Review, 136(1),
27-48. Retrieved from
http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/
224009291?accountid=28125
Courtney, v. H., Mangum, S. L., David B Greenberger, R.,L.Heneman, & Skoglind, J. D.
(1997). Temporary employment: Can organizations and employees both win? The
Academy of Management Executive, 11(1), 93-104. Retrieved from
TEMPORARY EMPLOYMENT PRACTICES 12
http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/
210538578?accountid=28125
Davis-Blake, A., & Uzzi, B. (1993). Determinants of employment externalization: A study
of temporary workers and independent contractors. Administrative Science Quarterly,
38(2), 195-195. Retrieved from
http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/
203954044?accountid=28125
De Cuyper, N., & De Whitte, H. (2010). Temporary employment and perceived employability:
Mediation by impression management. Journal of Career Development, 37(3), 635-652.
doi:10.1177/ 0894845309357051. Retrieved from
http://ezproxy.bellevue.edu:80/login?url=http://
search.proquest.com.ezproxy.bellevue.edu/docview/852205361?accountid=28125
De Cuyper, N., De Witte, H., & Hetty, V. E. (2011). Temporary employment. Career
Development International, 16(2), 104-113. doi:10.1108/ 13620431111115587
Retrieved from
http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com.ezproxy.bellevue.ed
u/docview/866418266?accountid=28125
TEMPORARY EMPLOYMENT PRACTICES 13
De Jong, J., De Cuyper, N., De Witte, H., Silla, I., & Bernhard-Oettel, C. (2009). Motives for
accepting temporary employment: A typology. International Journal of Manpower,
30(3), 237-252. doi:10.1108/ 01437720910956745. Retrieved from
http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com.ezproxy.bellevue.ed
u/docview/231926833?accountid=28125
Dempster, L., MB. (1997). Cargill hiring temporary employees. Calgary Herald, sec. B, pp. 2-2.
Retrieved from http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/
docview/244619819?accountid=28125
Fernandez-Mateo, I. (2009). Cumulative gender disadvantage in contract employment. The
American Journal of Sociology, 114(4), 871-871. Retrieved from
http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/
195879142?accountid=28125
Fernandez-Mateo, I., & King, Z. (2011). Anticipatory sorting and gender segregation in
temporary employment. Management Science, 57(6), 989-1008. Retrieved from
http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/
873265018?accountid=28125
TEMPORARY EMPLOYMENT PRACTICES 14
Forde, C. (2008). “You know we are not an employment agency”: Manpower, government, and
the development of the temporary help industry in Britain. Enterprise & Society, 9(2),
337-365. doi:10.1093/ es/ khm105. Retrieved from http://ezproxy.bellevue.edu:80/login?
url=http://search.proquest.com.ezproxy.bellevue.edu/docview/218612474?
accountid=28125
Galarneau, D. (2010). Temporary employment in the downturn. Perspectives on Labour and
Income, 22(4), 5-17. Retrieved from
http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/
894123999?accountid=28125
Gonos, G. (2001). “Never a Fee!” the miracle of the postmodern temporary help and staffing
agency. Working USA,, 4(3), 9-9. Retrieved from http://ezproxy.bellevue.edu:80/login?
url=http://search.proquest.com/docview/236513161?accountid=28125
Koff, A. (2010, January). Project Work & Temporary Jobs for Retirees, Boomers & Seniors
Rising in 2010. Retrieved from
http://retiredbrains.com/News/Project+Work+1-5-10/default.aspx
TEMPORARY EMPLOYMENT PRACTICES 15
Lumpur, K. (2004, October). Temporary employees leave entitlement. Newspaper Straits Times,
pp. 01-01. Retried from
http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/
271821268?accountid=28125
Norman, J. (1995, July). Q&A: Defining temporary employee:. The Orange County Register,
business, pp. D.03-D.03. Retrieved from http://ezproxy.bellevue.edu:80/login?
url=http://search.proquest.com/docview/272787873?accountid=28125
Parrish, D.-A. (1998, January). Managing temporary employees. Black Enterprise, 28(6), 23-23.
Retrieved from http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/
docview/217898944?accountid=28125
Siker, P., Barnsbck, M., & Powell, J. (1997). Frequently asked questions: Human resources and
temporary staffing. Office Solutions, 14(2), 40-41. Retrieved from
http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/
216432241?accountid=28125
TEMPORARY EMPLOYMENT PRACTICES 16
Snyder, R. A., & Shank, M. D. (1995). “Temporary solutions”: Uncovering new market
opportunities in the temporary employment industry. Services Marketing Quarterly,
12(1), 5-5. Retrieved from
http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/
200195430?accountid=28125
Vosko, L. F. (1998). Regulating precariousness? The temporary employment relationship under
the NAFTA and the EC treaty. Relations Industrielles, 53(1), 123-153. Retrieved from
http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/
224295994?accountid=28125
Vosko, L. F., & Andrew, C. (2002). Temporary work: The gendered rise of a precarious
employment relationship. The American Review of Canadian Studies, 32(1), 162-165.
Retrieved from http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/
docview/213998889?accountid=28125