Wondering if you should rethink your talent acquisition strategy? Temp-to-hire staffing can be a smart, cost-effective option that takes the pressure off you and your candidates.
Between rising costs and the risk of bringing on a candidate who might not be the right fit, there’s a lot keeping you from finding the right talent—and these hurdles can lead to wasted time, strained budgets, and high turnover rates.
Searching for something better? Enter the temp-to-hire staffing model, a practical and flexible approach. Unlike with direct hire, temp-to-hire involves a staffing agency placing a candidate in a temporary role with the potential for permanent employment, allowing the employer to make a more confident hiring decision. Think of it as a "try before you buy" arrangement, where both the employer and employee get to test the waters to ensure a good match.
If you haven’t pursued temp-to-hire staffing before, you might be hesitant to switch up your talent acquisition strategy, but there’s a world of benefits if you do so. We’ll walk you through four of them, and explain how temp-to-hire staffing can help businesses hire smarter, not harder.
#1. You get a chance to evaluate employees in the real world
Interviews and resumes can only tell you so much about how a candidate would really perform when faced with the demands of the job. Temp-to-hire staffing lets you go beyond surface-level assessments and gives you a front-row seat to see how a potential hire operates in the real world.
Get a “real” skills test
Interviews and skills tests are helpful, but they don’t always capture how someone handles the day-to-day responsibilities of a role. With temp-to-hire, you can observe a candidate’s ability to manage projects, solve problems, and collaborate with team members over weeks or even months.
Because cultural fit is more than just a buzzword
Besides skills, you also need someone who clicks with your company culture. Cultural fit is an intangible quality, but with temp-to-hire staffing, you have time to assess it without making a permanent commitment upfront. Are they thriving in the team dynamic? Do they share your company values and fit with the workplace energy?
See real-world performance under pressure
Temp-to-hire arrangements let you see how a candidate performs when real workplace challenges arise. Can they stay calm under pressure? Do they handle tight deadlines or unexpected changes with professionalism and poise? Observing their real-world performance gives you confidence that the person you’re hiring can succeed.
Spot long-term potential early
The extended trial period of temp-to-hire staffing also allows you to gauge a candidate’s potential for growth within your company. Are they eager to learn, take on new responsibilities, and expand their skills? If so, you may have identified someone who not only excels in the present but also shows promise for the future—making them a long-term asset for your team.
#2. It’s a more cost-effective talent acquisition strategy
Hiring new talent can be expensive, especially when you consider the costs of onboarding, training, and employee benefits. Add the risk of a bad hire to the equation, and those expenses can quickly spiral out of control. Temp-to-hire staffing offers a cost-conscious alternative that allows businesses to manage their hiring budget more effectively while still securing top talent.
A phased approach to employment expenses
One of the biggest advantages of temp-to-hire is the ability to spread out employment costs over time. Instead of jumping into a full-time hire with all the associated expenses, you can take a phased approach. In a temp-to-hire arrangement, the staffing agency typically covers the candidate’s payroll, as well as taxes and benefits during the trial period. This removes more of the financial burden from your plate, freeing up resources for other priorities.
Gradual transition of costs
Once you’re confident the candidate is a good fit, the transition to full-time employment can happen seamlessly. By then, you’ll have seen firsthand that the individual brings value to your organization, making it easier to justify the long-term investment. This gradual assumption of employment costs ensures you’re allocating your budget strategically, without rushing into unnecessary spending.
#3. It helps you ensure hiring risk reduction and reduce turnover
We’ve seen that a bad hire can be costly. Temp-to-hire staffing takes much of the guesswork out of the process, offering a way to reduce turnover and set both your business and your new hire up for success.
Avoid the risks and costs of a bad hire
Making the wrong hiring decision is expensive. From the resources spent on recruiting and training to the productivity loss when someone doesn’t work out, the costs can quickly add up. Temp-to-hire staffing provides a safety net, letting you thoroughly evaluate a candidate before offering them a permanent role. If it turns out they aren’t the right fit, the separation process is much smoother—and far less expensive—than if they were already on your payroll full-time.
Reduce turnover with a proven fit
Turnover isn’t just disruptive; it’s costly—estimated to be six to nine months of a full-time salaried employee’s pay. Temp-to-hire staffing reduces this risk by allowing you to hire with confidence by observing a candidate’s skills, work ethic, and cultural fit during the trial period. This proven fit approach means fewer surprises down the road and greater retention of the talent you bring on board.
#4. It streamlines the integration process
Bringing a new hire into your team can be exciting, but then you have to worry about making a new employee feel comfortable and productive. Temp-to-hire staffing makes this process far smoother for both employers and employees, allowing integration to happen naturally and at the right pace.
Onboarding through hands-on experience
Instead of overwhelming new hires with a flood of information during their first few days, temp-to-hire allows employees to ease into their roles, learning processes and expectations as they go. And for employers, this hands-on approach is a chance to see how well a candidate adapts to the role without the pressure of rushing through traditional onboarding.
More time to identify and address training needs
No two employees come with the exact same skill set, and a temp-to-hire arrangement gives you the time to assess what kind of additional training they might need. Whether it’s learning new software, refining communication skills, or understanding industry-specific practices, you can provide targeted training during their temporary period that sets them up for full-time success.
Testing the waters of team compatibility
Team dynamics can make or break workplace harmony. With temp-to-hire staffing, you’ll see how well the candidate collaborates with your existing team. Are they contributing to a positive work environment? Do they communicate effectively with colleagues? These insights help ensure a good match for both your team and the candidate.
Seamless transition to permanent status
When a temp-to-hire candidate has proven they’re a great fit, the transition from temporary to permanent employment is pretty straightforward. By this point, they’ve already built relationships with coworkers, understand the company culture, and are familiar with the role’s responsibilities. This eliminates the adjustment period that often comes with a brand-new hire, making the shift to full-time employment feel almost effortless.
Try out these strategies for implementing temp-to-hire staffing
Interested in the possibilities that temp-to-hire staffing offers? A thoughtful approach can help you maximize the benefits for both your business and your temporary workers. Here are a few practical tips to get you started:
Set clear expectations and timelines
Right from the start, it’s important to establish clear expectations for the temp-to-hire process. Define the role, outline responsibilities, and communicate the goals you hope to achieve during the temporary period. Set a realistic timeline for evaluation, so both you and the candidate know when decisions about changing from temporary to permanent employment will be made. Transparency builds trust and sets the stage for a positive experience on both sides.
Establish set evaluation criteria
Before you can fairly assess whether a candidate is the right fit for a position, you need to first define your evaluation criteria. Think about what’s most important for the role—technical skills, teamwork, adaptability, or cultural fit—and create a checklist or performance metrics to track progress.
Keep communication open with temporary workers
Temporary employees want to feel like part of the team, so make a point to check in with them regularly, offering feedback on their performance and answering any questions they might have. Open communication helps temporary workers feel valued and gives them the confidence to grow into their role. It also ensures that any concerns or misunderstandings can be addressed early, keeping the process smooth and productive.
Why temp-to-hire staffing is worth considering
Temp-to-hire staffing offers a refreshing alternative to the traditional hiring process, giving businesses the chance to build their teams with confidence. With the ability to evaluate candidates in real-world conditions, reduced hiring risks and costs, and streamlined onboarding, this approach has benefits that go far beyond simply filling an open role. It’s a strategic way to ensure you’re bringing in the right talent while remaining flexible in a competitive and ever-changing job market.
Whether you’re looking to reduce turnover, manage costs, or find that perfect fit for your team, temp-to-hire staffing is a strategy worth evaluating. And while you’re doing so, you might want to re-evaluate your compensation strategy. Make informed decisions about competitive compensation in your market. Request Spherion's comprehensive local salary guide to ensure your temp-to-hire offers align with current market rates. Contact your local Spherion office today to receive your free salary guide and learn more about how our temp-to-hire solutions can strengthen your workforce.