Feature: Temporary staffing strategies, by New Frontiers

New Frontiers debates the advantages and disadvantages of recruiting temps as a profitable staffing strategy

The travel industry has reluctantly used temps in the past to cover holiday, sickness and maternity leave. Temps have been seen as expensive and a luxury – but are they? In uncertain times, your business needs flexibility. Will recruiting temporary staff be both cost effective and productive?

In the past, travel companies have been put off by temp’s high hourly charges and had difficulty confronting the ‘I can do it quicker myself’ philosophy. Temps were quick fill-ins for desperate times. They were people, who didn’t have easily remembered names. People, who simply ‘came and went’. People, who did the boring, monotonous jobs no-one else wanted to do. People who then got a permanent job and left you in the lurch? Sound familiar? Then, according to Julia Feuell, Managing Director of New Frontiers, you need to think again!

Ms Feuell says: “Years ago, temps were booked out literally by the day. Now it’s by the month and increasing! Companies have been using temps much more strategically since the chief reason for temping is no longer because someone is ‘in-between jobs’, but because they simply prefer to work in this way. Temping has become the new career. It will be good to know that you can call upon these highly skilled and experienced people at times when call volumes are high.”

Sharon Smith, Manager – Temp and Contracts division comments: “This year, temps have been requested to help transfer a business travel account to another company, to staff a call centre that is relocating, to cover maternity leave, to help get a new account off the ground whilst the company finds permanent staff and to staff unpopular shifts in call centres to maximise bookings.”

As a staffing strategy, recruiting temporary staff as a method of employing staff gives the business the much needed flexibility it needs in such a competitive and uncertain market. But what about the financial argument to recruiting temporary staff. The table below gives a cost comparison that many travel companies will be surprised about! When it comes to adding up the cost of employing permanent staff in terms of agency fees, advertising, recruitment and induction time, temps can actually be cheaper. This is particularly the case if your Reservations Agents don’t complete one year of employment.

SAVINGS £3450

The business of recruiting staff is getting more complex with a legislation minefield and a wrong move ending up in tribunal. The government has been regulating the recruitment industry too and the legislation, that has had the most impact, has been the Working Time Regulations. This regulation has required Recruitment Companies to pay temporary workers 4 weeks holiday pay. This legislation has also had the effect of attracting more people to long term temporary work. In the New Year, new legislation will make employing temps even cheaper as after a qualifying period, you can take on a temp permanently free of charge!

So if the costs are comparable to people on permanent salaries and you can employ people for as long as you require on whatever hours suit you, then are there any disadvantages? Well one to watch for is that if you have taken a temporary worker on a fixed term contract for one year and decide not to renew it, then this may give rise to an unfair dismissal claim. Best to get advice. Acquiring employment rights may also be a problem in the future if you have temps that have worked for you for over one year. You will need to give greater consideration as to how you let the temp go. New Frontiers or a legal advisor can help.

“The travel industry is traditionally a seasonal business and getting the staffing levels right is hard to forecast. Cost effective, skilled temporary staff may indeed be the strategy for increased profitability and therefore job security for the future.” says Julia Feuell, Managing Director, New Frontiers.

This feature was supplied to TravelMole by New Frontiers, the travel recruitment specialist.

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