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Strategies for Handling Wage Inflation

In 2022, wages rose dramatically, with pay increases generally falling in the 6.5 to 8.5 percent range, depending on role and industry. As a result, companies are finding it increasingly difficult to keep their budgets in check, particularly since wage growth was coupled with rising prices on materials, services, and other expenses organizations have to shoulder.

Essentially, wage inflation creates challenges. Along with the cost of maintaining personnel, it impacts recruitment. Candidates have different expectations when it comes to compensation, and failing to meet them means increasing difficulty when attempting to secure top talent.

Fortunately, there are strategies that can help companies handle wage inflation. One worth using is hiring temporary employees through a staffing firm. Here’s a look at how temporary staffing can make wage inflation easier to shoulder.

Temporary Employees Provide Agility

One of the primary benefits of hiring temporary employees through a recruitment agency is the high degree of agility. There’s no long-term commitment when a temp worker comes on board. As a result, employers can add or release temporary employees at their discretion, creating opportunities to continuously right-size their workforce.

The right-sizing capabilities are particularly valuable for companies with demand levels that shift seasonally. Temp employees can start an assignment with the employer to support the peak season, and those assignments can end as demand cools, creating the utmost flexibility when it comes to workforce management.

Temp Workers Reduce Costs

Bringing employees onto a company’s payroll comes with a variety of costs beyond wages. Issuing and supporting benefits packages comes with a price. Similarly, expenses like workers’ compensation and unemployment can add up quickly.

By using temporary workers for short-term needs, many of the additional costs aren’t on the shoulders of employers. Instead, the staffing firm is responsible for benefits administration, workers’ compensation, and unemployment expenses. As a result, the total amount a company needs to pay and the work it needs to manage in relation to short-term hires is significantly diminished, typically resulting in overall savings.

Plus, the recruitment agency often handles costs relating to recruitment, hiring, and onboarding. In turn, companies spend even less to bring workers on board using the associated services.

Temp-to-Hire Leads to Smarter Hiring

With wages rising, intelligent hiring decisions are essential. Handling the costs associated with a bad hire is increasingly difficult, as the related expenses are on the rise.

As a result, temp-to-hire programs provide even more value. It allows employers to conduct working interviews before extending permanent job offers. In turn, they can assess the fit as the worker handles their responsibilities, making it easier to determine if the match is strong before bringing them on board permanently.

Find a Staffing Partner You Can Count On

Ultimately, wage inflation is creating challenges, but hiring temporary employees through a staffing firm can reduce some of the burdens. If you’d like to learn more about how temporary hires can benefit your organization, A.R. Mazzotta wants to hear from you. Additionally, if you’re ready to add temporary employees to your workforce, A.R. Mazzotta offers flexible hiring solutions for a wide array of industries. Request an employee from A.R. Mazzotta today.