Why Should Not Business Continue to Hire Business Temporary Workers?

Running head: ECONOMICS
Economics
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ECONOMICS
Why should not business continue to hire business temporary workers as a strategy to
contain their costs or to help them restructure?
Businesses might hire temporary workers for filling the short run needs or for filling
the place of an absent full time staffer in order to reduce the payroll costs. While such help
van be beneficial to a business, there are some downsides to the approach. It have been found
out that more than 26 percent of the US workers are the temporary workforce. One of the
disadvantage of working as a temporary employees is that they have no job security. The
recession and the financial crisis affects mostly to the temporary workers. Since the candidate
pool known to have grown larger, the criteria for getting a temporary job has increased .
Another disadvantage of being a temporary employee is that they does not get any paid
vacation and zero paid sick days. However, a firm needs to pay fixed cost even when the
output is declining and therefore they will be leading to significant losses when there will be
economic downturns.
As the temporary workers do not have job security, they face higher rates of
depression and anxiety for which the productivity also decreases. As the employees will be
suffering from stress, they will also less productive in nature. When the productivity of the
firm will decrease, the marginal physical product will be even lower. Although hiring
temporary employees will be beneficial since they do not have to pay for sick leaves,
vacations, health insurance of the employees. Since the temporary workers do not have job
security and sometimes even no fixed payments, they are known face higher rates of
depression and anxiety. As they have no job security they are very easy to lay off. When
temporary workers are hired in place of full time staffers for reducing the costs or for
avoiding, it will be creating an environment in which employees feel undervalued in general.
The longer an employee is with the company, the better it is for company since, they become
with your products and client base. Staffers with an investment in the company for a long