Companies generally pay temporary employees to lower wages and offer fewer benefits than they extend to their core counterparts. In temporary employment situations, work plans are restricted to a particular period of time depending on the needs of the company. Organizations may hire temporary labor to fulfill a short-term need or as a way to reduce payroll costs. Organizations or companies that employ temporary workers are likely to encounter several disadvantages from the practice. These disadvantages outrun the advantages of cost saving (Koene, Galais, & Garsten, 2018).
First, organizations that utilize temporary labor damage their client relations. Some of the company’s customers prefer being served by the same workers on a regular basis. The introduction of new workers to the company’s labor structure damages customer service. Secondly, they experience loss and damage to workplace morale. This creates a sense in which the workers of the company feel less valued. Temporary workers have poor morale due to lack of long-lasting teamwork. Lastly, legal concerns may arise for companies that employ temporary workers. This is due to the lack of a provision of benefits associated with permanent employment. Workers are likely to advance lawsuits challenging their working status and their lack of eligibility for long-term benefits (Koene, Galais, & Garsten, 2018).
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In my belief, these drawbacks outweigh the cost savings benefit. This is due to two major reasons. First, cost saving cannot overcome the loss of longevity experienced due to constant propping in and out of workers in the company. Loss of familiarity to a product from the workers due to their dismissal leads to loss of loyalty from customers associated with certain workers. Secondly, the cost savings benefit cannot surpass the loss of productivity the company experiences by hiring temporary workers. The potential for company growth damaged when certainly experienced workers are replaced reduces the value of the business establishment. As a result, the efficiency of the company decreases.
Reference
Koene, B. A., Galais , N., & Garsten , C. (2018). Management and Organization of Temporary
Agency Work. Abingdon: Routledge.
