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Markets and the Economics of the Public Sector

Discussion Question: (250-300 words long)
Companies generally pay temporary employees lower wages and offer fewer benefits than they extend to their core counterparts. Nevertheless, what are some of the possible drawbacks for companies that employ temporary workers? Do you believe that these drawbacks outweigh the cost savings? Explain
I want you to discuss and answer this question and to help you to do so I will upload a PowerPoint file helping you to answer this question.
Here is two of the classmates responses to this question read it and try to connect their responses to your answer and discussion.
One of the biggest drawbacks for companies that employ temporary workers is that the workers lack commitment to the organization. One thing that is very important for companies to have is employee commitment. If employees are not committed to doing well for the company, the organization will have a hard time succeeding. Since temporary employees are only with the company for a short amount of time and do not receive benefits, most of them are not committed to do well for the company. Since the temporary employees receive less pay, they tend to not work at the same level as full-time employees. Also, since the temporary employees will be leaving soon the turnover rate of the company will increase significantly. Having many temporary employees will increase the turnover rate and make the company look bad. There are also costs with training the temporary employees. The time that is put into teaching the temporary employees will be wasted if they are only there for a short amount of time. I believe that these drawbacks outweigh the cost savings associated with the temporary employees. It is more beneficial for a company to hire full-time employees that will be committed to the organization and will strive to make the company successful. These employees will be less likely to leave and more likely to do their best work for the organization.
Possible drawbacks for companies that employ temporary workers include equity problems between core employees and temporary employees, FLSA overtimes provisions, benefits, and the question of who is responsible for working worker’s compensation protection. I believe that temporary employee drawbacks do not outweigh the cost savings. Temporary employment is a helpful option and one I believe more companies should use. Being a soon to be graduate, I wish there was more temporary employment options out there, I have started applying for jobs, but don’t seem to be having much luck due to lack of experience, but have no way to getting experience if none is willing to hire me. I would be happy to work in a temporary employment position because I could gain experience, and have the mindset that even though I’m not getting paid as much as other people and I may not be receiving full benefits, I am making network connections and building my references.

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