Hiring Seasonal Employees – Understanding The Benefits and Drawbacks

Hiring Seasonal Employees Benefits and Drawbacks

Though a specific company needs to trigger the growth every month, there is an abrupt demand for seasonal employees in a particular period of the year. Just like the water removal companies are more active in monsoon, lights, and other decoration stores in Diwali and color stores in Holi, there are seasonal employment categories that are renowned more. But the success is obtained when the employer can hire the right person at the right time. Once the season is over, such an employment offer can be of no use. Thus for your seasonal business, you must understand the importance of hiring seasonal employees.

What is a Seasonal Employee?

Like fruits are seasonal, employees also can be called seasonal. These employees and workers are the ones performing jobs for particular months while staying unemployed for the rest of the year.

To be precise, the agricultural department shows the best example of a seasonal employee/ worker. As farming consists of sowing, tilling and harvesting the land, it is a one-time activity in a year. Thus the workers here are only called to be active during such time. In layman’s language, the nature of such employees changes with the seasons.

Similarly, some small businesses are only active during a particular season of the year; thus, it is essential for the employer to understand the benefits and drawbacks.

What are the Benefits of Hiring Seasonal Employees?

Though regarded as seasonal employment, the employer might feel benefited after hiring seasonal employees that can be difficult to get with the permanent or continual job.

1. Cost-Effectiveness

The primary profit of hiring seasonal employees is in cutting costs. The small businesses, even the startups, with seasonal products, can turn down the payroll management costs.

As the business operates only for a specific period, the costs incurred for hiring employees and providing them payroll will be one time only when the company will be actively working.

Moreover, as the seasonal employees are a kind of part-time employees, they are subjected to the pro-rata based salary and are not offered overtime payment. Thus reducing the payroll costs.

2. Flexible Workforce

According to studies, offering flexible working schedules in the business results in a 27% increase in the productivity of 630 employees. (source)

Due to the one-time need of an employee, the employer can flexibly manage the workload as per their requirement. They can select the part-time employees who want to work for one season. Thus the cost and pain of hiring full-time employees can be laid off as they have to hire new employees every season. It also eases down the pain of processing the full and final settlement of permanent employees.

(source)

3. Boosted Productivity

As the employees have more flexibility and clear bifurcation of the workload, they can develop a fruitful balance in private and professional life. It gives them enough time to manage essential tasks with boosted morale and improved performance.

Even it results in less toxic mental burden due to the reduced amount of stress and balance. When the business needs a more incredible workforce to distribute the loads, but the employer doesn’t recruit any employees, the existing permanent/ full-time employees end up trimming the productivity and encouragement.

It may occur that you end up losing the promising candidates due to turnover to the less stressful work environment. It even intensifies your payroll and hiring costs. However, hiring seasonal employees can curb your pain by satisfying the peak time needs.

4. Overtime Payment Relief

Due to the flexible nature of seasonal employees, they fall into the category of employees who are exempted from the applicability of overtime payment. And thus, due to the exemptions of the overtime, the company doesn’t storm in any statutory charges.

The hired employees who work for the seasonal requirements fulfill the need for jobs at a lower cost. It also helps in making the employees more satisfied and happier.

5. Trial Employment

As you hire new employees in a new season, you can test various employees for your peak on and off times of the season. According to the need, trying more talented employees can bring you more access to the mixture of talents and progressive mindsets.

Even if the employee is not suitable for the post, you can let them go after the season ends. If you find them worth keeping, offer extended employment for the offseason or can call them for the next prevailing season.

6. Reduce Risks

If you are a startup, you have risks at all stages, even while hiring employees. You may end up questioning yourself. Will they be promising and hard-working people? Will it help the business in reaching the targets? What if they failed?

As we already discussed, the employees can be freed after the season ends. Thus, it is less risky if you mistakenly did a lousy hire. Neither do you have to spend a lot of time behind them, nor you have to keep paying them as permanent employees.

Always remember, if they are the best fit for your company, rehire them in the new season as you have all the obligations to do so.

What are the Drawbacks of Hiring Seasonal Employees?

Any technology or method comes with its own benefits and drawbacks. Similarly, hiring seasonal employees may bring some inbuilt flaws that no employee would want.

1. Reduced Training

Due to the short span of the season, employees hiring and training is generally on a quick note, and thus the employees are less trained on the work they have assigned. Even due to lack of training, they are less likely to manage the burden of tasks and fall into a mental crunch web. They develop less interaction with the workers and thus start to feel burn out.

Eventually, such employees seek another more satisfactory business resulting in increasing turnover rates.

2. Commitment Issues

Because of the default mindset of leaving the job after the season, the employees don’t bring much-expected output they should. Due to their limited amount of employment with the company, they are not seriously attached to the job and take it for granted.

These kinds of employees lack the commitment to the work, bring undesirable results, and turn down encouragement. Better to clear out your expectation from the start of the joining, so you apply the option of rehiring well-performed employees previously. Thus, organizing an environment of fun and enthusiasm.

3. Lack of Loyalty

It is the truth that loyalty and trust come alongside each other. But it takes a more extended passage of time to build. And as the seasonal employment is for the sake of one season, employees leave at the end. Thus it is hard to maintain that significant loyalty in them.

However, offering them more benefits and flexibility may help in intensifying the relationship of trust. It also allows them to choose another workplace.

The Trending Facts Related To Seasonal Employees

  • The competition seems to be indeed high for seasonal employees, which comprise 2.1 million of the global workforce.
  • Hiring seasonal employees contributes to about a 17% reduction in payroll costs.
  • Around 57% of the contract workers work greater than 40 hours per week.
  • The global market of the gig economy is expected to reach around $455.2 billion by the year 2023.
  • About 59.1% of gig employees use online mediums to find fresh opportunities.
  • The average gig worker earns 58% less than that of a full-time worker.

Takeaways

Whether it is seasonal employment or permanent employment, the regular practices of offering benefits and maintaining trust in employees are the essential things for running a business. Sometimes employers hire just to make their work done with no importance of the relationship. But that’s not enough to survive in the market with daily ups and downs.

An employee needs benefits to get attracted to the job, and their work productivity is what the employer seeks. Thus all the processes are connected. If you need services, you have to offer some advantage to the opposite party.

Shubham Joshi

Shubham Joshi is an experienced content marketer. Passionate about training and development programs, he is always ready to help colleagues and customers by representing concrete ideas and methodology. Beyond work, he is well-equipped with problem-solving abilities.

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