Demand for the temporary labor force is driven by many factors. As per an article
published on The NY Times, Google had 102,000 full time employees and 121,000 temporary and contract workers till the first quarter of March. The primary factor that drives the demand of temp workers is the desire to save labor wages and benefits.
Temp workers offer businesses a cost-effective way to replace employees who are out on maternity leave, sabbaticals, or other long-term vacation. Temp workers are hired for the value of their output and thus do not receive any perks or benefits like health insurance and bonuses.
It also helps companies to maintain optimal staffing levels. Their presence can help companies optimally distribute the workload, without overburdening the permanent employees.
Some companies also hire temp workers to try out their ability and adaptability in the team before hiring them for permanent positions. Once the trial period is over, they are offered a permanent position in the company.
Temp workers help companies meet the short-term demands of a particular skill or role. For example, nearly every other service providing company is coming up with business mobile application. Developing a mobile app requires specialized skill and expertise. Hiring a temporary mobile application developer can help serve the purpose without having to permanently incur the cost of getting an in-house developer on-board.
Temp workers help companies meet the short-term demands of a particular skill or role
Contract workers can help keep the official employee headcount of the company low and thus lower labor incurred costs.