Leveraging temporary and as-needed employees

9/4/2024

Ashley Laudick spent the beginning of her career working for the same employer day in and day out. As a full-time speech and language pathologist, she got bored. She did not like being in the same place all the time. So, Laudick made a much-needed change and started working for herself. For the last 10 years, Laudick has worked as an independent contractor and as needed for various clinics and nursing homes throughout the state. Although it may be seen as unconventional and unpredictable, it works for Laudick. And it works for employers, too. With Iowa’s declining labor force participation rate, it is challenging to find and attract talent. As such, it may be time for employers to make use of “as-needed” employees.

Working as needed

PRN stands for the Latin term “pro re nata.” It means “as necessary” or “as the circumstances arise” in medical terminology. For Laudick, this employment model means she is not often in the same place. It provides great flexibility. When she needs a day off, she can take one. It also amounts to better pay. She makes $15-20 more an hour working PRN. 

“It helps that there is a huge need for speech therapists in the area. There’s like 400-some-odd job openings in the state alone,” Laudick said. “Finding work has never been an issue, so it was a safe way to take the leap.”

It does come with its drawbacks, though. In the beginning, Laudick was worried about a fluctuation in income. Some employers do not consider the cost of travel. And, of course, she is ineligible for the benefits that come with full-time employment. But, despite the challenges, she is the breadwinner for her family. She considers herself lucky to have a spouse who carries insurance. 

The drawbacks for the employee may be considered incentives for the employers. Hiring contract employees means savings on benefit costs and payroll taxes. But from a productivity standpoint, there may be drawbacks. 

“There is absolutely a benefit to having the same person there five days a week. Working with the exact same person, continuity of care is really important,” Laudick said. “That being said, sometimes that much therapy time for the therapist and for the patient can lead to burnout, for both… When I was working full-time, I was not engaged. I’ll be totally honest. I burned out so fast with these folks doing the same thing all the time.”

Now a PRN, Laudick feels she is more engaged. She can bring a fresh perspective to the patients she may only see once or twice. 

For employers utilizing as-needed medical work, Laudick offered some suggestions to make the most of their services.

“The solution is so simple. Just pay us what we’re worth… Listen when we talk to you, and let us make our own clinical decisions. Do those three things, and people would never leave.”

Hiring as needed

A variety of reasons exist as to why a company might utilize temporary employees, according to Mike Bringle, regional vice president of sales at The Palmer Group. A company may only need some temporary help filing paperwork or filling in for a front desk person who is out on parental leave. Even an unpredictable economy could be a reason, as there may be a need for workers now but not necessarily long-term. 

The Palmer Group works with clients to meet their workforce needs. Their focus is on the IT, accounting, finance, engineering, manufacturing, customer service and administration industries. 

Clients will go to The Palmer Group when they need workers and utilize their direct hire or contract hire services. Before the pandemic, The Palmer Group saw an equal split between direct hire and contract hire. After COVID, they saw about 70% in direct hires, but now it is trending toward normal levels.

The Palmer Group’s network of contract hires is about 300 workers. These contract hires are employed by The Palmer Group, stay on their payroll and may become eligible for benefits and company shares. Their thorough vetting and matchmaking process helps to ensure employers end up with the right talent. Utilizing a temporary employment service like The Palmer Group may lead to growth and opportunities for small and medium-sized businesses.

“There are a number of mid-sized companies in the Des Moines area that we’ve helped stabilize and bring in talent to help them grow,” Bringle said. 

That includes Wright Services Corp. Bringle remembers when they were just a small business in the Valley Junction neighborhood; now, they are nationwide.

It also frees up time for employers. Using a service like The Palmer Group’s means they do not have to waste time working through the talent search process.

Workforce trends

According to Gabe Gulick, CEO of Percipio Workforce Solutions’ Temporary Staffing Services at 4214 Fleur Drive in Des Moines, after the pandemic, there has been a surge in “labor hoarding.” This is when businesses hold on to as many employees as they can while they brace for economic hardship. Companies that go into a recession holding onto their employees may avoid the cost of rehiring and training once the dust has settled. While this practice leads to lower unemployment and continued consumer spending, the size of the hiring pool continues to shrink. 

“We’re seeing a slowdown in hiring on entry-level positions,” Gulick said. “There’s not as many opportunities in the marketplace for that… Where the market is hot is in what I call the middle-skill or the high-skill positions.”

In the manufacturing and industrial field,  Percipio’s specialty, there is a high demand for workers with experience in fabrication, welding, machine operating and programming. As Iowa’s workforce continues to age and boomers retire, there is a growing hole in the market for workers who know how to fix things and read blueprints. Gulick does not see this need cooling off for quite some time. 

“I think eventually some of those jobs — technology, artificial intelligence that everybody talks about — will continue to replace some of those jobs. But the market will change,” Gulick said. “If you’re replacing those jobs with technology, then you’re also going to need people who operate that technology, fix that technology, who program that technology. So, those jobs will just change a little bit.”

Regardless of current talent, a company should not want to turn down potential business. That’s where temporary workers come in. 

“You may be a widget manufacturer that has the staff to make 200 widgets a week, and if you get an order for 600 widgets, you want to be able to take that order. You don’t want to turn that down because that’s how you grow your business,” Gulick said. “Using temporary and contingent labor can allow you to quickly ramp up to have the manpower that you need for that business. And then, if you maintain that business, you can hire those people on, and you already have a ready-made staff.”

Suggestions for employers

Regardless of the type of employee, one mistake Gulick sees employers make is taking too long to hire.

“If there is a candidate out there, and they are qualified and they do have good skills, you have to move as an employer very quickly,” said Gulick. 

Companies that take weeks to accept resumes, review them and schedule interviews are losing highly skilled talent to companies that hire and onboard more quickly. It is a bad habit Gulick has seen his clients fall victim to within the last 15 years.

Once a company gets hold of talent, most employees can determine if a company is the right fit within their first couple of days — including temporary workers. Gulick said the key to managing temporary workers is ensuring they have the right experience. The first step is providing ample feedback and letting the workers know how they are doing. Number two is treating temporary employees as their own. 

“For instance, if there’s a celebration because a facility hit a certain production goal or a safety goal or they’re having their plant anniversary, making sure to include those temporary employees gives them a sense of ownership in the work that they’re doing and the organization that they want to be a part of,” Gulick said. “As much as that temp-to-hire period is a job interview where the employer is looking at the employee and saying, ‘Do we want to hire them?’ That employee is looking at the employer and saying, ‘Do I want to work here?’ So it works both ways.”