A determination on the cost efectiveness of temporary employees for a Essay

A determination on the cost efectiveness of temporary employees for a manufacturing company - Essay Example In this study, several items will be considered while analyzing the cost effectiveness of temporary workers. First, an overall analysis of the benefits as well as the drawbacks of temporary workers will be presented in comparison to the hiring of full-time employees. The presentation of this analysis will demonstrate that hiring temporary workers is, in fact, more beneficial for companies when trying to cut costs.Temporary workers allow for companies to adapt to fluctuating markets, and give them some control in an economy that has not provided much earning incentive. In order to resolve this and to adapt to changing times, temporary workers can be hired and maintained by companies for as long as needed. Skilled contingent workers are included in this study. While skilled contingent workers are often paid more than other temporary workers, and often more than full-time workers as well, their use still allows the company to save money. This is because they are usually brought on for s hort term projects, and then released when the projects are completed. The large salaries or hourly wages earned by skilled contingent workers thus will end, and the company can return to normal expenditure. There would therefore be no need to bring on another full-time employee to handle certain skilled situations that are needed for specific periods of time only, and this has helped to keep costs down for many companies. This study examined three companies throughout a one year, four quarter period. Costs were analyzed and determined as the companies transitioned into using more and more contingent workers. The results of this study demonstrate that companies achieved cost-cutting results that increased every quarter for each company that participated in the study. Therefore, this study helps to prove that temporary workers, whether skilled or not, can be used to help cut the costs of company finances. Based on the findings, it appears that the use of temporary workers does, in fa ct, cut costs for companies. Therefore, the key recommendations of this study are for companies to use temporary employees in order to save money in a worsening economy. TABLE OF CONTENTS ABSTRACT 3 CHAPTER I. Statement of the Problem 5 Statement of the Problem 5 Purpose of the Study 5 Research Objectives 5 II. LITERATURE REVIEW 6 Temporary Employees 6 Core Reasons and Responsibilities of the Temporary Agency 7 Core Reasons and Responsibilities of the Organization 8 Core Responsibility of the Temporary Employees 11 III. METHODOLOGY 13 IV. Data analysis 14 Who Are the Temporary Workers 14 What Jobs do Temporary Workers Perform 17 How Often Are They Used 18 Overview of the Model 20 Is Training and Hiring Employees Cost Effective 25 Company 1 - Illustration 26 Company 2 - Illustration 27 Company 3 - Illustration 27 V. Summary, CONCLUSION, Recommendations 28 VI. 28 REFERENCES 33 Refer to the Student Guide for formatting and titles of chapters, etc. Chapter 1: Statement of the Problem Due to the rise of the global economy, technological advancement and the growth of the service economy have promoted changes in the way organizations do business (Camerman, Cropanzano, & Vandenberghe, 2007). These require that business develop the ability to respond flexibly to the fast-changing environments. One such strategic decision is whether to engage temporary employ