7 Ways Your Small Business Can Utilize Temporary Staffing
Any small business owner knows the challenge of navigating the inevitable ups and downs, especially when you need to adjust your staffing quickly. Whether it’s a busy season, a special project, or just a little extra help, temporary staffing can provide the flexibility and expertise you need.
Small businesses may not always consider turning to temporary help, thinking it’s better suited for larger enterprises. However, integrating temporary workers into your team — from filling unexpected gaps to tapping into specialized skills — can keep your business running smoothly while saving valuable time and resources.
What is temporary staffing?
Temporary staffing involves hiring employees for a set period to meet specific needs, such as seasonal demand or project-based work. Often called “temps” or seasonal workers, these employees can fill roles in big and small businesses in almost any industry. Businesses are hiring highly skilled professionals, including engineers, doctors, nurses, and marketing managers, on a temporary basis. Small businesses can leverage temporary staffing to fill a variety of roles, from customer-facing positions to essential back-office functions.
Temporary vs. seasonal staff
Temporary staff fill short-term gaps in the workplace by replacing employees on leave, addressing unexpected surges in workload, or providing specialized expertise for a limited time. They may work on a flexible schedule throughout the year, allowing businesses to scale their workforce up or down as needed.
Seasonal employees, on the other hand, are typically hired for specific peak periods, such as the holidays or harvest seasons, and their roles are closely tied to predictable cycles of high demand.
Both types of staffing serve distinct purposes and can be crucial tools for businesses looking to maintain productivity and efficiency.
Industries that already utilize temporary staffing
Temporary staffing plays a vital role across various sectors, helping businesses maintain flexibility and adapt to changing demands. According to the American Staffing Association, “staffing companies hired 12.7 million temporary and contract employees” in 2023.
Staffing employees are found in nearly every occupation and industry sector, including:
36% Industrial: Temporary workers in the industrial sector often fill roles such as machine operators, assembly line workers, and warehouse staff to manage production surges or seasonal inventory demands.
24% Office–Clerical and Administrative: Office roles, including data entry clerks, receptionists, and administrative assistants, are frequently filled on a temporary basis to cover employee absences or support project-based work.
21% Professional–Managerial: Many companies hire project managers, financial analysts, or marketing consultants for temporary assignments, allowing them to access expertise without a long-term commitment.
11% Engineering, Information Technology, and Scientific: Tech and engineering sectors rely on temporary staffing for specialized roles like software developers, network engineers, and lab technicians, often for contract-based projects.
8% Health Care: Hospitals and clinics frequently use temporary staffing to address nursing shortages, provide coverage for vacations, or manage patient overflow during busy periods.
The versatility of temporary staffing makes it an invaluable solution across these industries. It allows businesses to scale their workforce, maintain operational efficiency, and meet critical deadlines without overcommitting resources.
Different ways small businesses can hire temporary workers
If you’ve seen the benefits of temporary staffing and want to utilize it in your business, you may be asking yourself where you go from here. You have several options to pursue, including:
Employing workers directly – If you pursue this option, you'll need to create job descriptions, handle advertising, and conduct interviews yourself. As part of your staff, you'll also be responsible for their unemployment benefits, Social Security, and workers’ compensation. The Small Business Administration (SBA) outlines your obligations when hiring directly.
Using a staffing agency – For an easier (but more costly) route, consider a staffing agency. After receiving your criteria, the agency will find suitable employees and handle recruitment tasks like reference checks and drug screenings. The main drawback is the higher cost per employee, but the convenience and reduced risk may justify the extra expense for your business.
Hiring an independent contractor – If you need expertise in areas like marketing or finance, an independent contractor may be ideal. Contractors generally work per project or hourly. You can find them through professional networks or platforms like LinkedIn. Since they’re self-employed, you're not responsible for their taxes or benefits, but misclassifying workers as independent contractors can result in IRS fines.
How your small business should utilize temporary staffing
Small business owners can utilize temporary staffing in a number of ways to ensure that they are never understaffed. Here are seven ways that small businesses can make use of temporary staff:
Manage seasonal fluctuations
Cover permanent staff
Decide if the temporary staff is a good fit
Save money
Boost staff morale
Grow your network
Focus on business growth
Manage seasonal fluctuations
The holiday season is the busiest time for many small businesses. Getting your business ready to maximize sales opportunities means more than having enough inventory. You also need to ensure that your staffing levels are adequate to deal with the increase in customers. Since the holiday sales period is relatively short, hiring temporary staff can be a smart way to prepare.
The duration of your temporary staff’s employment will depend on how much training they need. If you plan to hire temporary workers directly, you’ll need to allow for extra time to show them the ropes. However, if you work with a staffing agency, they provide workers who are already experienced in your industry and require minimal training.
In addition to the holiday rush, many small businesses, particularly in retail and hospitality, experience peak periods at other times of the year, such as summer. You can hire temporary staff for these months to keep your business fully covered. Alternatively, if your business has been awarded a new contract and you’ll find it difficult to deliver without help, then it’s a good idea to utilize temporary staffing. Utilizing temporary staffing in your small business helps to keep your customers satisfied while helping you control your cash flow.
Cover permanent staff
Permanent staff will always need time off for reasons like vacations, medical leave, or parental leave. During these absences, small businesses can rely on temporary staff to fill in and maintain operations.
Hiring temporary workers with the right skills ensures your business continues running efficiently until your permanent staff returns. You may still need temporary employees even when your full-time staff is present. If your regular team is at full capacity and unable to handle extra work, a temporary worker can lighten the load.
If business growth is driving the increased workload, temporary staffing allows you the flexibility to find and hire the best permanent candidate.
Decide if the temporary staff is a good fit
Bad hires can harm your small business by decreasing productivity, damaging staff morale, and creating financial strain. When considering a permanent addition to your team, careful due diligence is crucial. Temporary staffing offers a "try before you buy" opportunity, allowing you to assess an employee’s commitment and suitability for the job. This could prevent future problems like no call, no show employees or those without the skills needed for the job.
The cost of using a staffing agency is typically less than the resources and time invested in a permanent hire. With a staffing agency, you can easily end the contract early or replace a temporary worker if they’re not suitable for the role.
If the temporary worker proves to be a good fit and is interested in permanent employment, you can coordinate the transition with the agency.
Temporary staffing can be an effective hiring platform, with 35% of respondents in an American Staffing Association survey being offered a permanent job. Carrie Wood, co-founder of Lease Ref, describes temporary staffing as a “litmus test” to find out if someone is truly committed to the business.
Save money
Temporary staffing provides significant cost-saving advantages for small businesses trying to stay on budget. One major benefit is the reduction in benefit costs since temporary workers hired through agencies typically do not require health insurance, retirement contributions, or paid leave. Businesses can adjust their workforce to match seasonal or project demands, avoiding the expense of maintaining an oversized permanent team during slower periods.
Outsourcing HR functions is another cost-saving strategy. Staffing agencies or independent HR contractors handle recruitment and compliance, saving time and reducing legal risks. Temporary workers are considered employees of the staffing agency, which assumes responsibility for unemployment and workers’ compensation claims, further cutting overhead costs.
Temporary staffing also lowers training and turnover expenses. Agency-supplied workers often arrive with the necessary skills, requiring minimal onboarding.
Temporary workers also help control overtime costs by handling extra workloads during busy periods, reducing the need for costly overtime pay for permanent staff.
5. Boost staff morale
Overworked permanent staff can become frustrated and may start seeking opportunities elsewhere. Excessive hours not only harm morale but can also pose health and safety risks, especially for those operating heavy machinery. Employees under constant pressure from juggling multiple roles are likely to feel resentment. By easing these burdens, you show your team that their well-being matters.
Temporary staffing gives your permanent employees the breathing space they need to do their job properly. Whether the extra work is temporary or signals long-term growth, bringing in temporary staff helps alleviate stress while you strategize for the future. Overworked employees are more likely to leave, creating further challenges, but the right temporary staff can enhance productivity and morale.
Temporary staffing can also help address challenges caused by employee absences. When colleagues take extended leave, others may feel overburdened, leading to tension and resentment. To navigate these issues, consider strategies for managing a regularly absent employee. Temporary staff can prevent these issues by ensuring workloads remain balanced, allowing your team to focus on their roles and stay cohesive.
6. Grow your network
Networking is an important part of growing small businesses, and temporary staffing is an effective way to develop your network. Temporary hires who enjoy their time working with your business often share their experiences, which is especially useful if you’re hiring directly. Having a list of reliable contacts for extra help eases the pressure of finding temporary employees. If a trusted temporary staff member can’t work, they might recommend someone suitable to replace them.
When using independent contractors, networking becomes even more important. Contractors are experts in their field, and their recommendations can be valuable since they’re careful to protect their reputations.
For example, you may need a specialist to revamp your social media or branding. Hiring temporary workers can be a way to build a network of experts you might need in the future.
7. Focus on business growth
Using temporary staffing, especially when a staffing company is used, allows small business owners to focus on growing their business. A staffing company handles key tasks like payroll, benefits, and taxes, along with the legal and administrative requirements for hiring temporary employees. This includes compliance with regulations such as the Affordable Care Act, which can be challenging for small businesses. By outsourcing these responsibilities, you gain peace of mind while ensuring compliance.
One of the few things you’ll still oversee is scheduling your temporary employees efficiently to ensure they’re where they need to be. Learning how to effectively schedule your staff hours is crucial for running your business smoothly. Tools like scheduling software can streamline this process, saving time and freeing you up to focus on expanding and improving your small business.
Pros and cons of temporary staffing
Temporary staffing can provide small businesses the flexibility and support they need to stay efficient and grow. However, like any staffing solution, it comes with advantages and challenges that should be carefully considered.
Pros
Flexibility
Cost savings
Trial period for employees
Reduced workload for permanent staff
Specialized skills
Fast hiring process
Administrative relief
Cons
Lack of commitment
Training costs
Team cohesion challenges
Higher hourly rate
Variable skill levels
Limited availability
Dependency on agencies
Use Deputy for your temporary staffing needs
Small business owners can utilize temporary staffing to run an efficient business. Temporary staff can fill gaps during peak periods or work on a trial basis while you assess their fit as a permanent addition to your team.
Whether you manage a large staffing agency, a local restaurant, or a franchise retail store, Deputy’s streamlined timesheet approvals, simplified payroll process, and quick shift options reduce administrative overhead costs for permanent and temporary staff members.
Give Deputy a try by booking a demo and see why businesses across the globe use Deputy as their all-in-one employee management solution.
