Temps, freelancers, outside contractors, and other contingency workers can step in and save your bacon when you’re steering your business through a rough patch. And when you’re about to enter a period of unpredictable growth or embark on a new project with an uncertain outcome, contingency workers and temps can handle the work you give them without requiring long term commitments on your part. In general, temporary employees provide the flexibility you need to stay lean and manage risk, and temps with high levels of talent or specialized training can be the answer to your company’s prayers.
But since they’re not full time employees and they won’t be staying on board when your needs shift, how can you make sure you’re paying your talented temps what they deserve? Keep these guidelines in mind.
1. First, start by calculating the full time equivalent salary for this type of work at this specific level. Research the standard rate for this position, in this industry, in this geographic area. Find out what your competitors are paying for full time employees in this position. Then divide that annual salary rate by 2,080, the number of full time working hours in a year.
2. This hourly rate will form the foundation of your calculations, but the actual number at which you arrive will probably be somewhat higher. This is because talented temporary employees can provide specialized skills and services that you’re unlikely to find among your in-house teams. It’s also because by hiring a temp, you’re being permitted to sidestep the hassle of tax and reporting issues and the cost of benefits like health insurance.
3. After you’ve determined your base hourly salary, research the rarity of the skill sets your contingency worker has to offer. If your employee comes with low replaceability, it’s in your best interests to err on the side of a higher offer instead of a lower one—if you lose your employee before the contract ends, or she opts not to return when you contact her in the future, you’ll have to restart an expensive and difficult search process over from the beginning.
4. A higher offer can also protect your company’s reputation, which can increase your access to talented applicants in the future. Underpaying or disrespecting contingency workers can have a damaging and expensive impact on your long term hiring prospects. But paying your employees well can boost your workplace image, which can help you keep your hiring costs down and your options open.
For more information on how to find great temporary employees, bring them on board, and keep them engaged and productive, reach out to the NC contingency staffing experts at PSU.