Staffing Firms and Perma-temping: What You Should KnowJune 29, 2021
Temporary workers make up a surprisingly large number of people in the US workforce today, with an estimated 15 million or more temporary workers each year. Businesses across a multitude of industries have turned to staffing agencies and temp agencies to help solve several problems. From labor shortages to chronically understaffed companies, temp agencies can offer a simple, straightforward solution.
However, the convenience of staffing firms can sometimes lead to a practice called “perma-temping.” Perma-temping occurs when a company retains a short-term temp worker after the end of their contract, without offering permanent employment, benefits, or justifiable wages. This keeps employment costs low for companies while exploiting the labor of temporary workers.
While perma-temping can often occur accidentally or without true intent from a company, it is an issue that needs to be addressed. This article will go over the significant point of perma-temping and explore LACOSTA’s solution to the problem. Keep reading to learn more about how you and your company can avoid perma-temping and what you can do instead!
Every year, job seekers across the country apply to temp agencies and staffing firms in order to find steady, part-time labor. These temp workers are employed across many industries, filling jobs wherever they are needed and helping companies fill out their labor staff. Though many temp workers tend to work through manufacturing and construction staffing agencies, a wide variety of temp work is available. Temporary staffing agencies vary in reliability and quality, but overall, the staffing industry is thriving due to the high demand for temporary work.
That being said, the industry is in danger as more and more complaints pile in regarding perma-temping. From class-action lawsuits to protests and petitions, temporary workers are fighting to end their exploitation.
Perma-temping is harmful to temp workers in several ways, from unequal wages to a lack of benefits. Though there are plenty of justifiable, nuanced complaints, there are three major issues when it comes to perma-temping.
- Unequal Wages- When a company keeps a temp worker on full-time staff, the temp worker will rarely get the same payment as the permanent employees doing the same job as them. While a temp worker can fill out a workforce nicely, they do so at a lower cost to businesses than permanent employees. If the temporary worker is kept on for longer than their intended contract, they get exploited out of their proper paycheck.
- Same Hours, No Benefits- Despite working the same hours as a permanent employee, temp workers who are perma-temped get none of the benefits that a company provides for their employees. Because of the “separation” between a permanent employee and a temp worker, temp workers are unable to rely on unemployment benefits, health care, or any other regular benefits of a long-term job.
- Improper Supervision- Ideally, when a temporary worker is assigned to a job, they will be supervised by their own staffing firm, not the company they temp at. However, many temp workers find that they are managed by either the client alone or both the staffing agency and the client in tandem. This supervision puts unfair expectations on the temp worker, as they must live up to the expectations of a permanent employee without the protection of full-time status.
How To Avoid Perma-Temping
Thankfully, not all staffing solutions lead to perma-temping, and there are some easy solutions to prevent the exploitation of temp workers. For instance, LACOSTA’s Managed Labor Solutions provide exemplary temporary labor, with protections in place for our skilled workers, to prevent the possibility of perma-temping altogether.
Benefits and Protection
Firstly, LACOSTA clarifies that our Managed Labor solutions employees are LACOSTA employees, not employees of their clients. For our employees, this means they have full-time benefits, including healthcare, 401(k) matching, and paid time off, among other incentives. Because our service offers benefits and considers our temp workers full-time employees, our turnover rates are much lower than temp agencies.
Benefits, such as those listed above, provide job security to temp workers and circumvent possible tension between permanent and temporary workers. LACOSTA’s Managed Labor employees know that they are valued LACOSTA employees and that they will not fall prey to perma-temping.
Skilled Labor and Contract Management
Secondly, we differ from many other employment agencies, as we offer thorough and continuous training to all of our employees. This ensures that they have the skills and knowledge to provide top-quality temp work to any client they work with, and they know the value and worth of the job they are providing. Additionally, LACOSTA is entirely in charge of our employees, so we monitor all agreements under our Managed Labor Solutions, making certain that no contracts are overextended.
With employees who are self-assured in the value of their knowledge and work, perma-temping is much less likely to occur. Combined with our monitoring of contract start and end dates relationship management, LACOSTA has ensured that our temporary staff is well protected and ready to provide the most efficient services possible.
With the assurance of job security for our employees and extensive experience in client satisfaction, LACOSTA’s Managed Labor Solutions provides a model for what a successful labor solution can look like. As opposed to solely providing services to a single industry, like a construction staffing firm, our Managed Labor Solutions cater to a wide variety of companies and industries.
Our team is prepared to step in and help your company with the heavy lifting so that you can focus on your own core business functions. If you are interested in learning about how our employees and our services can help take your business to the next level, please don’t hesitate to reach out. We are always happy to answer any and all questions you may have.