As businesses around the country look for ways to improve worker productivity - even marginal increases can have a profound effect over long periods - many are turning to previously unexplored areas to trim costs.
Although many have found that bringing on temp workers for the short term is a great way to handle unexpected surges in demand, or for specific, time-constrained projects, others have noted that with all the benefits of temp workers, there are downsides, too.
The Temp Worker Absenteeism Problem
Temp workers often feel less accountable for their actions and aren't as engaged with the company as a salaried employee. For this reason, it may be more likely such a worker could become the dreaded no-call no-show, which can affect a company's bottom line in several ways.
According to Busy Bee Manager, one of the biggest effects of a no-show is what it can do to customer service or product quality. In the warehouse sector, this could mean missed deadlines and interrupted supply flow resulting in unhappy customers and time spent defusing the situation. But the detriments don't stop there.
How it Affects Permanent Employees — and the Economy
Internally, employees may begin to lose the will to work together toward a common goal if they're continually having to bear the load of a temp worker. This can lead to quicker employee attrition and major losses in productivity that extend beyond the individual worker.
To get a sense of the monetary cost of absenteeism, managers can look to the cost of sick days. According to the latest data released by Gallup, reported by 24/7 Wall Street, sick days cost the U.S. economy $84 billion every year. The services industry is especially prone to suffering from no-shows - whether it's illness-related or not - with each worker averaging one sick day for every two months.
To ensure contract workers feel comfortable in their position, many companies are opting for new labor solutions that incentivize good work, ensuring individual - and company-wide - productivity.