GEORGALOS

Diego Marin is a highly experienced Human Resources professional, with a proven track record in diverse industries and challenging environments. With a strong leadership background and training in change management, Marin is delivery-focused and adept at achieving turnaround results.

In an interview with Manage HR magazine, Marin highlights the pros and cons of using temporary work as a tool in business, emphasizing the importance of proper management, clear policies and careful evaluation to avoid potential negative consequences.

The value of a tool and the key to its existence lies in the potential use one can make of it, the added value will be linked to the opportunity to make use of it, to know how to use it and of course, to have the right tool for each task. If we think of temporary work as a tool and of course it is a great one, the analogy is applicable. Having the possibility of using it in circumstances that require it or are advisable, it is valid to keep them in mind as a solution, but also the drawbacks related to inadequate use.

Throughout my career, however, I have witnessed companies over-using this tool, almost to the point of abuse, with negative consequences for management and business.

Regardless of the risk of not complying with regulatory norms that in different countries affect this practice, insistently using temporary work can have undesirable consequences for the business.

● The cost of hiring temporarily is more expensive per unit of time, that is, the advantage of immediacy, both in the selection and in the management and dissolution of the employment relationship, has an extra cost, which is the cost of the agency that provides this service quickly and efficiently. A good advanced programming of human resources and staffing often allows for avoiding this extra cost.

●The identification of the temporary worker with the company is not optimal, his onboarding is sometimes non-existent and he has no sense of purpose. The quality, in general terms, of the temporarily hired resource is not optimal.

● Control over the selection process is lost, being many times personnel of inferior qualification that is accessed by this means, with precarious selection processes and low qualifications.

● In general, unions do not feel comfortable with this model, they perceive that they lose representativeness and it also happens that they have no affiliation relationship with these employees. In the worst case, they even demand the permanent incorporation of these personnel who have arrived on a temporary basis, but whose hiring is prolonged over time and generates a real conflict.

● The exceptionality that justifies temporary hiring often becomes habitual and loses its essence. I have worked with leaders who resorted to this tool, abusively, seeking to justify logical ups and downs of the business or the unit they were in charge of, as "exceptional," when they rarely are or can be perfectly foreseen. It happens that for these leaders it is often "easier" to deal with "other people's" temporary employees than with their own "problems." If something is wrong, a call to the temp agency resolves an employee change, whereas managing a permanent employee would not allow for such a thing or would be much more embarrassing.

“The true value of a tool lies in its potential use; its worth is unlocked through the opportunity to use it effectively and having the right tool for each task.”

● Permanent employees often do not get along well with newcomers and do not generate bonds that facilitate teamwork. Also, there is a loss of work effectiveness and efficiency because the permanent staff must train or coach the temporary staff, so the loss of productivity is concrete.

● In many companies, temporary labor is not considered, at the accounting level, as labor but as a management expense charged to different accounts, thus becoming hidden or undisclosed labor in the company's accounting accounts. They are not considered specific items in the annual budgets.

Taking into account these potential drawbacks, the temporary staffing tool provides value in certain circumstances and under certain conditions that we should attend to and respect:

● Establish a clear policy for the use of the tool, approved and adequately shared in the areas involved. Establish approval, control and audit mechanisms on the use of these resources.

● To resort to this tool in real conditions of need, evaluating all alternatives and accessing this tool is the last option.

● Have a good prior negotiated agreement with the agencies that provide the personnel, clearly establishing the costs and service level.

● As far as possible, have company officials supervise or participate in the recruitment process. In this sense, establish conditions so that temporary employees can eventually be considered for permanent positions in the company. With this visualization, the quality of the resources and the quality of their work is notoriously elevated.

● To have strict control from the point of view of management with transparency in administration and control.

● Establish special items that contemplate this eventual need in the company's budgets.

● To have fast and specific onboarding plans for these cases.

● Agree on conditions with the unions beforehand, explaining the scope of this measure and its consequences. For example, good temporary collaborators can be replacement cadres for permanent positions in the company.

Once again, a specific tool is necessary for a specific job. Temporary work, as a tool, should bring more solutions than inconveniences to our management!