December 7, 2023

Temp Work: What Are the Pros and Cons Compared to Permanent Employment?

Category: Uncategorized

Author: Matthew T. Hurm, Esq.

More and more today, corporations are turning to temporary employment agencies to fill their short and even long-term needs. The law has struggled to keep up with changes to the employee-employer relationship as it changes and molds with time. There are many different types of employment relationships and many different types of temporary employment situations. This article deals specifically with temp work opportunities offered through a temporary employment agency. These types of relationships do have a few advantages for employees, but they also present new challenges temporary employees need to be aware of and plan accordingly.

Benefits of Temp Work

There is a reason that major corporations have increased their hiring of temporary employees. The relationship is greatly advantageous to corporations and mostly disadvantageous for most workers. That said, there are certainly advantages to temporary employment that a wise career path could and should take advantage of:

Transitional Employment

It has become more frequent that employees choose to change their careers midway through their life and even multiple times in their working life. Temporary employment is a great way to try no career paths out without committing too much time to training and learning if the path you chose ends up being a bad fit. This strategy also works when a worker moves to a new state or area and does not know which employers are the best fit for them.

Avoiding Resume Saps

Generally, employers grow suspicious when there is a long gap in employment on a resume. They can raise questions of work ethic or whether the employee is dedicated to their craft. Using temporary employment can fill in some of those gaps and avoid awkward interview questions.

Maintaining Income

Unemployment benefits in Ohio span six months and are infrequently extended. Temporary employment can help maintain income and help bridge you until the next step in your career.

Therefore, the importance of using temporary employment to your advantage is to keep the temporary employment temporary. There are many disadvantages to temporary employment which multiply the longer you are temporarily employed.

Disadvantages of Temporary Employment for Workers

The disadvantages of temp work can vary but generally consist of fewer benefits and protections, such as:

Frequently No FMLA Leave

Family Medical Leave Act leave is only available for employees who have worked 1,250 hours over the previous year. Most temporary employees do not satisfy this requirement.

Frequently No Health Insurance

Under federal law, employers are not required to offer health insurance for any employees working fewer than thirty (30) hours a week (calculated annually). Most temporary employees do not satisfy this requirement.

Hiring Fees and Agency Costs for Temp Work

When a company hires a temporary employee, it agrees to pay the temporary employment agency an hourly fee for that employee’s services. The temporary employment agency then turns around and pays the temporary employee a fraction of what it was paid. It is not uncommon for a temporary employee to get between 60-75% of the amount the corporation paid to employ them. With permanent employment, employees get 100% of the wages paid for their services.

How Will Temp Work Affect You?

In the end, temp work can be an important tool in a career path, but is best only used temporarily, occasionally, and for specific purposes and for specific ends. If you have questions about how temporary employment might affect you or your loved ones, please contact the Hurm Law Firm at (216) 860-1922.

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