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Operations Management
Companies are continually challenged to maintain an effective work force while controlling cost. Payroll expenses typically account for 30 to 50 percent of company expenses with some companies spending much more. Human resources managers are challenged to find ways to hire qualified, productive personnel while keeping costs down. In difficult economic times, the challenge is even greater. Companies must be cautious about hiring new employees when sales and profits are declining. On the other hand, the company must function in the present and be prepared when the economy improves. Today, human resources managers often use hiring practices to help create a flexible work force. Hiring temporary employees is a way to meet urgent, short-term needs. Temps are hired for a limited time, a specific project, or when a company does not want to risk committing to a new permanent employee. Another approach, known as temp-to-hire, adds the possibility of full-time employment for temporary employees. Sometimes called "try it before you buy it," the temporary employee is offered a trial period. If the company determines it needs a permanent employee and the temp likes the work and the company, the temp becomes a permanent employee. The American Staffing Association, a trade association, reported that in a recent year nearly 2.5 million people worked in temporary or non-employee positions each day. That is nearly two percent of the total workforce. To place that many temporary employees, staffing companies had to recruit more than 11 million prospective employees during the year.

Companies are continually challenged to maintain an effective work force while controlling cost. Payroll expenses typically account for 30 to 50 percent of company expenses with some companies spending much more. Human resources managers are challenged to find ways to hire qualified, productive personnel while keeping costs down. In difficult economic times, the challenge is even greater. Companies must be cautious about hiring new employees when sales and profits are declining. On the other hand, the company must function in the present and be prepared when the economy improves. Today, human resources managers often use hiring practices to help create a flexible work force. Hiring temporary employees is a way to meet urgent, short-term needs. Temps are hired for a limited time, a specific project, or when a company does not want to risk committing to a new permanent employee. Another approach, known as temp-to-hire, adds the possibility of full-time employment for temporary employees. Sometimes called "try it before you buy it," the temporary employee is offered a trial period. If the company determines it needs a permanent employee and the temp likes the work and the company, the temp becomes a permanent employee. The American Staffing Association, a trade association, reported that in a recent year nearly 2.5 million people worked in temporary or non-employee positions each day. That is nearly two percent of the total workforce. To place that many temporary employees, staffing companies had to recruit more than 11 million prospective employees during the year.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Business Insight..Temp-To-Hire Companies are continually challenged to maintain an effective work force while controlling cost. Payroll expenses typically account for 30 to 50 percent of company expenses with some companies spending much more. Human resources managers are challenged to find ways to hire qualified, productive personnel while keeping costs down. In difficult economic times, the challenge is even greater. Companies must be cautious about hiring new employees when sales and profits are declining. On the other hand, the company must function in the present and be prepared when the economy improves. Today, human resources managers often use hiring practices to help create a flexible work force. Hiring temporary employees is a way to meet urgent, short-term needs. Temps are hired for a limited time, a specific project, or when a company does not want to risk committing to a new permanent employee. Another approach, known as temp-to-hire, adds the possibility of full-time employment for temporary employees. Sometimes called "try it before you buy it," the temporary employee is offered a trial period. If the company determines it needs a permanent employee and the temp likes the work and the company, the temp becomes a permanent employee. The American Staffing Association, a trade association, reported that in a recent year nearly 2.5 million people worked in temporary or non-employee positions each day. That is nearly two percent of the total workforce. To place that many temporary employees, staffing companies had to recruit more than 11 million prospective employees during the year. Think Critically: 1. How do the temporary employment options discussed help a company control costs if they are actually hiring people to do the work?
Transcribed Image Text:Business Insight..Temp-To-Hire Companies are continually challenged to maintain an effective work force while controlling cost. Payroll expenses typically account for 30 to 50 percent of company expenses with some companies spending much more. Human resources managers are challenged to find ways to hire qualified, productive personnel while keeping costs down. In difficult economic times, the challenge is even greater. Companies must be cautious about hiring new employees when sales and profits are declining. On the other hand, the company must function in the present and be prepared when the economy improves. Today, human resources managers often use hiring practices to help create a flexible work force. Hiring temporary employees is a way to meet urgent, short-term needs. Temps are hired for a limited time, a specific project, or when a company does not want to risk committing to a new permanent employee. Another approach, known as temp-to-hire, adds the possibility of full-time employment for temporary employees. Sometimes called "try it before you buy it," the temporary employee is offered a trial period. If the company determines it needs a permanent employee and the temp likes the work and the company, the temp becomes a permanent employee. The American Staffing Association, a trade association, reported that in a recent year nearly 2.5 million people worked in temporary or non-employee positions each day. That is nearly two percent of the total workforce. To place that many temporary employees, staffing companies had to recruit more than 11 million prospective employees during the year. Think Critically: 1. How do the temporary employment options discussed help a company control costs if they are actually hiring people to do the work?
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