08/ 28/ 2002
by Vicki Gerson
Do you think you must hire only full-time employees to keep your business growing?
If you do, think again because there are other options. Businesses like yours are turning to alternative arrangements, including temporary employees, interns and leased employees.
Temporary employees
If your business is seasonal, temporary employees may be right for you. You need extra employees during the holiday season or during busy production periods. Temporary employees provide the flexibility your business needs to grow and to satisfy current and new customers.
Temporary employees have been prescreened, and most often, pre-trained and save you the trouble of conducting interviews. Temporary employees save you money because they don't receive vacation pay or unemployment benefits, and you don't have to pay workers' compensation insurance for them.
Many temporary companies also offer temporary-to-full-time programs. This allows an employer who is considering hiring a few full-time employees the option of making a job offer if the match seems good.
Interns
Most colleges give students the option of participating in an internship program. These students provide their time and talent for a small stipend, and the employer gives them jobs that will help them develop marketable skills.
To find an intern (and they are available year round), contact your local college or university. An application packet will be sent to your business. After it's completed, student resumes will be sent to you. Keep in mind, interns can't be used as "gofers." Since most earn college credit through the programs, the intern must have job responsibilities.
Professional Employer Organizations (PEOs)
When you lease employees, you do not have any administrative complexity. PEOs are responsible for federal regulations, the payroll, unemployment insurance, W-2 forms, plus all other paperwork.
Some employers confuse PEOs with temporary employment agencies, but they are quite different. Temporary help companies recruit employees and offer them jobs at various businesses. PEOs handle the personnel functions for the entire company and is actually the official employer--not you.
However, the business owner maintains management control over the work performed by the employees. Meanwhile, the PEO is responsible for reporting wages and employment taxes. The business owner must write a check to the PEO to cover the payroll, taxes, administrative fees and benefits.
Before you lease employees:
- Only work with a company that is flexible enough for you.
- Check banking and credit references. Make sure the leasing company's payroll taxes and insurance premiums are current.
- Ask to see a certificate of insurance.
- Ask for client references. Talk to them. Find out what pleased or displeased them about the leasing company.
- Find out if the leasing company is licensed or registered by your state.
- Read the agreement carefully. You may want your lawyer to read it as well. If possible, ask for a provision that allows you to cancel with 30 days notice.
