Cost-Effectiveness of Temporary Employees for a Manufacturing Company - Case Study Example

Temporary workers allow for companies to adapt to fluctuating markets, and give them some control in an economy that has not provided much earning incentive. In order to resolve this and to adapt to changing times, temporary workers can be hired and maintained by companies for as long as needed. Skilled contingent workers are included in this study. While skilled contingent workers are often paid more than other temporary workers, and often more than full-time workers as well, their use still allows the company to save money.

This is because they are usually brought on for short term projects, and then released when the projects are completed. The large salaries or hourly wages earned by skilled contingent workers thus will end, and the company can return to normal expenditure. There would, therefore, be no need to bring on another full-time employee to handle certain skilled situations that are needed for specific periods of time only, and this has helped to keep costs down for many companies. This study examined three companies throughout a one year, four-quarter period.

Costs were analyzed and determined as the companies transitioned into using more and more contingent workers. The results of this study demonstrate that companies achieved cost-cutting results that increased every quarter for each company that participated in the study. Therefore, this study helps to prove that temporary workers, whether skilled or not, can be used to help cut the costs of company finances. Based on the findings, it appears that the use of temporary workers does, in fact, cut costs for companies.

Therefore, the key recommendations of this study are for companies to use temporary employees in order to save money in a worsening economy. Due to the rise of the global economy, technological advancement and the growth of the service economy have promoted changes in the way organizations do business (Camerman, Cropanzano, & Vandenberghe, 2007). These require that business develop the ability to respond flexibly to fast-changing environments.