Exam 6: Recruiting and Labor Markets

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Several alternatives to regular full-time employees are leased employees,temporary workers,part-time employees,and independent contractors.These alternatives are attractive because they provide flexibility.Because temporary employees and contractors ordinarily do not receive medical benefits,the employer saves significant money compared with regular employees..Temporary employees allow the organization to staff up quickly to meet short-term or seasonal demand without any obligation to keep employees on when demand slackens.In addition,employers can try out temporary employees before offering them regular positions.
When Professional Employer Organizations provide leased employees,the organization does not have to handle the HR administrative duties involved with recruiting,selection,payroll,and government compliance,thus essentially outsourcing its workforce.Again,cost savings may emerge because medical benefits are not provided by the organization leasing the employees from the PEO,and the cost of the PEO services may be less than keeping HR specialists on the payroll to manage the workforce.The lack of benefits is a disadvantage to the leased employees,although sometimes the PEO will provide medical benefits.