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Temporary assignments vs Fixed-term contracts when hiring Business Support staff

Permanent roles are straightforward to understand, but when it comes to temporary and contract recruitment , many find it difficult to distinguish the difference.

Temporary assignments.

A temporary assignment gives both employees and employers flexibility.

For instance, if an employer requires reception cover because their receptionist is out ill and they’re unsure as to how long they will be on leave for, a temp would be the best option.

Nobody is bound into a formal contract and both parties are aware of this, therefore the employer has the flexibility to keep the temp on for as long as needs be depending on their availability. This will be discussed ahead of the assignment.

Find out how we can help with your Business Support recruitment .

Why do professionals choose to temp over seeking permanent positions?

There are a number of reasons for this and we would be happy to talk through this with you ahead of confirming a candidate.

The main benefit of a temporary assignment is that there is no notice period for both the employer and employee up to 13 weeks of employment. One week's notice will be required by both parties thereafter

Fixed-term contracts (FTC).

Another great option with many benefits is a fixed-term contract (FTC) . 

FTCs give both the employer and employee more security. The reason for this is that they sign a contract and the employee feels like they are part of the company and team in comparison to just filling the gap for somebody who is off.

While some candidates love the idea of temping, as they have the ability to work around their schedule, others want a greater level of security. 

No candidate's situation is the same, so it’s important for us as recruitment consultants to find out exactly what each candidate is looking for and what their motivation is. 

FTCs provide employers with commitment from the employee, due to the contract, so if you are looking for a strong candidate to stay in a role for the required time I would highly recommend going with the option of offering a fixed-term contract. 

Working with Morgan McKinley will make both options extremely easy for the following reasons:

We meet and screen all of our candidates.

This includes talking through and reviewing their resume or CV , covering all aspects. For example; any lengthy career gaps, why they left previous employment, education, their current situation, why they are looking to temp, their personality and whether or not they would be a good fit for your company. 

For us to be able to fully gauge this, I would suggest organising a meeting with your recruitment consultant . This will allow us to get an idea of your company culture and would give you a chance to find out all you need to know about the process.

We would be more than happy to call out to your office at a time that is convenient to you to discuss possible roles, inform you of any stand-out market trends, talk in more depth about what positions we recruit for across the board and how we can help and provide the best service possible. 

We complete reference checks and all of the compliance required.

A majority of our temps and contractors have completed a number of assignments through Morgan McKinley, which means that we receive regular feedback from clients. This feedback allows us to confirm a candidate with confidence.

  • Our temporary and contract roles vary in length from a day to 11 months, which means that we can get a temp into your company at short notice.
  • If your colleague is out unexpectedly and you require cover or you need an extra bit of help, all you need to do is pick up the phone and we can confirm somebody with you.

When you hire Business Support contractors or temps through us , you benefit from our innovative Contractor Experience team. This takes a lot of work away from your teams , reduces your time to hire , and ultimately makes your life easier .

  • Internal compliance
  • Handling of pay
  • Pre-employment screening
  • Issue resolution
  • Post-placement care

So whether you require a temp, are recruiting for a maternity leave contract, or just want to organise a meeting with a recruitment consultant so you can discuss future needs within your organisation, please feel free to get in touch with us today .

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What are the differences between a temp job and a part-time job?

People often confuse temporary work with part-time work, but there are distinct differences between these employment arrangements. We asked business leaders to discuss key differences between these two types of work. Here’s what they had to say.

Stephanie Dennis

Stephanie Dennis

Career Coach and Talent Acquisition Consultant

Stephanie Dennis is on a mission to empower people to take control of their careers by offering holistic career advice.

A temp job is just that—temporary—and generally for a pre-determined time at the time of hire. Usually 3, 6, 9 or 12 months, but it can really vary depending on the organization’s needs.

If someone does well in a temp job, it is possible for them to be hired full time.

You can be hired for a temp job in 1 of 2 ways:

  • Through the company directly. For example, if you are doing work for ABC Inc, you are paid by ABC Inc directly.
  • Through a staffing company . For example, you do work for ABC Inc and likely sit in the ABC Inc office but are paid by my XYZ Staffing.

Oftentimes, temps who are hired directly through companies have little to no benefits, whereas when someone goes through a staffing company, they have more benefits available to them.

To add to the complexity, you can also be a W2 or 1099 temp; however, 1099 generally refers to independent contracts, but not always.

A part-time job (that is not designated as a temp, contract, etc. because you can have part time temps) is a permanent role that will be needed on an ongoing basis. You work directly for the company hiring you, and there is no staffing company involved on an ongoing basis (you could hire a staffing company to fill a part-time permanent role and pay a fee for that person). Benefits are similar to temp, though with little to no benefits options for part-time employees. However, this can certainly depend on the organization you are working for.

Jason Yau

Jason Yau is the VP of E-Commerce & General Manager of CanvasPeople

Hiring for part-time or temp work are strategies that companies use in order to be more cost-effective when it comes to staffing/employment practices. It’s understandable why some would be under the impression that they are exactly alike. Temp work is more clearly defined in terms of how long the job is for. Before being hired, you’ll be told that when it ends and if there will be a potential temp-to-hire opportunity (this is highly dependent on costs, state of the business, etc.) For part-time work, the definition is a bit looser.

Essentially, if you’re working under 35 hours/week, you fall under the “part-time” umbrella. Knowing this, you can absolutely be working part-time in a temporary role. However, the differences are typically reflected in benefits, pay, etc. Many companies will apply pro-rated pay and benefits to their part-time employees in accordance with those that the full-time employees have. This is not the case for a temp/contract position. You might find yourself asking how temp work is even legal or if they get to share any perks that part-time employees do. Temp employees are still fully entitled to employment rights, labor laws, etc.

Polly Kay

Senior Marketing Manager at englishblinds.co.uk

Polly Kay has over a decade of experience as a digital marketing consultant and senior marketing manager, serving a diverse range of clients ranging from SMEs to large international corporations and household names.

A temp job might involve working either part-time or full-time hours, but by definition, it is a job that is intended to be performed on a short-term basis, or for a finite period of time. A temp job might continue for a day, a few days or for much longer – such as is often the case for maternity leave cover– but it is designed to be temporary, rather than a permanent, ongoing form of employment.

Temp jobs might also be available at short notice and involve a variety of different hours and working patterns, while most part-time jobs offer more regularity and consistency in terms of scheduling.

Businesses might employ temp workers when the amount of work available at any given time can be highly variable (such as within the hospitality trade), when the work is project-based with gaps between projects (such as within the construction trade) or at seasonally busy periods (such as in the run-up to the holiday season in retail units). All of these scenarios require additional staffing at certain times and this need may be replicated on a regular or semi-regular basis rather than being unpredictable or anomalous. Such scenarios neither warrant nor necessitate the retention of additional permanent staff, due to the times when little or no work is available for them.

Additionally, some small businesses during their early days may employ temp workers rather than permanent workers, even though they intend to keep the workers on long-term, as the uncertainty of the business’s future or their ability to offer the type of benefits permanent workers expect might impact their hiring practices.

Temp workers rarely receive the same types of benefits as part-time or full-time permanent workers, like healthcare, dental coverage, and paid vacation, but in some cases, they may be paid at a slightly higher rate to accommodate for these factors.

John Linden

John Linden

John Linden is a well-known, Los Angeles-based interior designer at mirrorcoop.com. Established in 2013, Los Angeles, California’s Mirror Coop is an online, curated collection of vintage, MidCentury, Art Deco furniture.

Basically, somebody who works under 35 hours per week is classified as a part-time employee. Any longer than that and they would be classified as full-time worker. On the other hand, temporary employees can work either part-time or full-time. They could clock in more than 35 hours a week and work full-time but still be considered a temporary employee. In fact, most temporary contracts assign people to cover for permanent employees who have gone on leave.

A part-time worker can be employed either on a permanent or on a temporary basis. If permanent, they have a regular schedule and work indefinitely. In contrast, a temporary worker does not have a regular schedule and only works for a specified amount of time. For example, a company might hire extra sales clerks around the winter holidays. Once that time is over, they will either leave or be recruited if the company liked the temporary employee enough to convert their position to a permanent one.

Part-time employees are bound by the same policies that would apply to a full-time employee. They’re considered to be workers for that company and can receive company benefits. Temps are often hired by agencies that send them out to work on temporary assignments. Compared to part-time workers, temps usually receive less pay and fewer benefits.

Ellen Mullarkey

Ellen Mullarkey

Vice President

Ellen Mullarkey is a Vice President of Business Development with Messina Group. Ellen joined Messina more than 25 years ago after graduating from the University of Iowa. She has been instrumental in establishing and expanding Messina’s staffing divisions .

Many people think about accepting a part-time job while they are looking for a full-time job to keep the bills paid and possibly avoid a gap on their resumes. This, however, can be a mistake for a few reasons. In some cases, of course, part-time jobs are offered with the possibility of full time if it’s a good fit. If you would be happy to stay with the company in the long term on a full-time basis, taking this sort of position is probably a good idea. However, if moving to full time is not an option or not what you want, it can be unfair to the employer to take it knowing you aren’t going to say. Even for part-time employees, employers invest in job searches and training and expect employees who commit to stay. This is why putting a part-time job on your resume that you left after a short time can actually look bad as it means you’re willing to abandon a commitment.

On the other hand, when you take temporary work, the employer expects you to be there for a short time and takes that into account with their investment in recruitment and training. Like some part-time jobs, there is often a possibility of it leading to full-time employment. However, if it’s not a great fit, you can simply complete the temp assignment, and everyone can go their separate ways amicably without being disappointed.

Also, when you work for a temporary staffing agency during a gap in full-time employment, you’re going to list the staffing agency as your employer on your resume rather than each company you work for. This means you can take short-term positions at several companies while looking for a good fit without making your resume look like you’re a flake or a bad hire. And the really good thing is that your reference and reputation are with the staffing company (not the individual companies you temp with), who can vouch for your successes and strengths even if you’ve had placements that didn’t go as well as you’d have liked.

Andrew Taylor

Andrew Taylor

Andrew Taylor is the Director of Net Lawman , a legal firm based in the United Kingdom.

Temporary, or freelance, work is one of the most flexible and adjustable ways to work. Temporary workers are hired for a brief and defined period of time or until a certain project is completed. They are also, in most cases, paid less than their full time or part-time colleagues.

Temporary work also offers a lot fewer benefits than regular or even part-time jobs. Most temporary workers don’t get to go on sick leave or have holiday pay. Of course, irregular and uncertain work is another one of the major disadvantages of these types of jobs.

Part-time, on the other hand, means working less than a full-time job, either by working fewer hours or days per week. One of the best advantages of part-time jobs is more free time to spend with your family or to devote to looking for a different job.

Part-time work is also suited for students who aren’t able to allocate 40 hours a week to work, so instead, they work as much as they can under 40 hours per week. This means a lower income compared to a full-time job. Also, having a part-time job, in most cases, means people working part-time will have fewer responsibilities and fewer ways to move up.

Amie Thompson

Amie Thompson

President & CEO, Creative Allies

Amie Thompson is an executive, investor, mentor, and leader and the current President & CEO of Creative Allies, a marketing agency driving unparalleled brand engagement for sports, entertainment, and business clients.

  • Employer commitment: Hiring someone temporarily is usually for a specific event or project, and there may not be much investment made in the individual’s development or career progression. This is in contrast to a part-time hire, where it’s in the employer’s best interest to help develop the individual to support career growth, even if they only work 10-20 hours per week.
  • Consistency: When an individual is hired for a temp role, there is very little consistency or ability for them to forecast long-term. On the other hand, a part-time worker, in most cases, will have some level of comfort of a consistent number of hours each week.
  • Duration: Part-time work could last indefinitely while a temp worker may be restricted to length based on the laws in each state (in the U.S.) If not restricted by laws, duration may be impacted by seasonal work.

Igor Mitic

Igor Mitic is an experienced writer and content creator in the financial niche. He has extensive experience working with banks, insurance companies, and other institutions that create financial products and services. He is passionately sharing his knowledge as the Editor-in-Chief at Fortunly.com , a website dedicated to the simple explanation of financial matters to ordinary people.

There are several differences between part-time and temporary employees. One is that part-time employees are always working fewer hours than full-time employees on a regular schedule, and their employment status is indefinite and ongoing.

On the other hand, temporary workers have a defined period they’re working for the company. (Either it’s time-based or project-based work). People working as part-timers are often included in a company’s payroll system. However, with temporary workers, there can be a problem determining whether a person is an individual contractor or an employee.

This is a crowdsourced article. Contributors are not necessarily affiliated with this website and their statements do not necessarily reflect the opinion of this website, other people, businesses, or other contributors.

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temporary assignment jobs meaning

10 Tips for Successful Temporary Assignments

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Organizations use temporary assignments for a variety of reasons. These assignments are usually loosely controlled activities of convenience for the individual, the boss, the organization, the family, or all of the above. Sometimes temporary assignments are for a specific project, such as to serve on a transition or integration team during a merger or acquisition. Many of the most respected organizations use temporary assignments as a way to enhance the skills of an individual or to test the person in different ways prior to a promotion to a higher level. If a person is truly on a fast track and being seasoned by some temporary assignments, it is imperative that he or she be told this information. That will serve as a great source of motivation and fortitude to endure the hassles.

Temporary assignments can be delightful opportunities to pick up new knowledge and to shine in a different way that has more exposure than the status quo. As all businesses become more global, temporary assignments give rising executives a convenient way to become more sensitive to cultural differences. Not all temporary assignments involve relocation; they can be just a transient change in function.

In a merger or acquisition process, there are often numerous temporary assignments because, by definition, conditions are changing dramatically. It is important to have some people pulled out of the daily business decisions to focus on the integration effort. In the steady state, these design and policy-making positions will no longer exist, so during the transition there will be numerous people in temporary slots.

Note: I am not referring to “temporary” or “contract” jobs, which are often used by organizations to reduce costs due to lower benefit costs. I am focusing on permanently employed professionals who have a defined position but are given different duties for some short period of time, usually less than 2 years.

The science of making temporary assignments work well is rather eclectic, and the track record of success is spotty. This paper deals with some of the problems that can occur and several ideas that can help improve the probability of success.

  • Poorly defined position – This often occurs when the reason for the temporary assignment is done for convenience. The person needs to be moved in order to eliminate some issue or to provide a slot for another individual. The assignment is drawn up hastily, often without much documentation of what this person will actually do. The focus is on getting the person moved quickly. The cure is to take the time to consider at least a partial list of duties that will be transferred with the individual. Make the assignment one that includes a real challenge, along with the authority to make professional decisions that help the organization.
  • Inadequate facilities – Many temporary assignments require people to perform in ad hoc or formal project teams. Finding a central location with the proper facilities in which to do the work is a typical challenge. For some period of time, individuals will have to work out of hotel rooms or sparsely-equipped community gathering places. One obvious alternative is to rent fully equipped and furnished office space from a real estate vendor whose business is providing flexible and convenient housing for professionals on the move. Another potential source of facilities is the real estate listings. Often there are buildings that are being underutilized due to bankruptcies or other discontinuities. The owner may be happy to make some low cost office space available rather than have a location atrophy while waiting for a buyer.
  • Inconvenient location – In most cases, people chose their domicile location to allow a reasonable balance of work function and lost time due to the daily commute. If a temporary assignment changes the pattern significantly, it can present a real hardship. Since, by definition, a temporary assignment has an end point, it is not likely the individual will go through a change of residence, and instead will choose to endure the hassle of a much longer commute. Often the need requires an individual to live in a different city and fly home on weekends for months on end. Sometimes it is possible to arrange temporary housing for the person in a convenient location to the job that allows the entire family to move in yet still maintain the original residence for the return path. This is a typical scenario for expatriates. The downside is that the vacant home needs to be made secure while unused, which can get expensive.
  • Lack of Authority – Since the roles of a temporary assignment are transitory by definition, individuals often feel a lack of authority at a time when they are forced to assume greater responsibility. They can see all the work and the confusion of carving out a niche of credibility, but they have little formal purchasing power to make their decisions stick. If individuals do not like or are threatened by the changes represented by the person in a temporary assignment (which is often the case), then it is possible to make the assigned person miserable through any number of ploys. Some people will get cynical and drag their feet, others will take a passive aggressive attitude, still others will undermine the individual through rumor or other hostile means. All of these methods can be like a Chinese water torture for an executive who is already under immense pressure. The antidote here is to give decision rights to the individual on the assignment and back up this person’s decisions and actions publicly.
  • Bad Personal Chemistry – An individual doing a temporary assignment is often entering a society with little knowledge of the people, customs, and culture. The reason for this person coming in may not have been well explained, and the individual is forced to establish new relationships from a position of distrust. That may get things off to a rocky start and require extra effort to achieve a good social balance. The antidote here is simple. The person arranging for a temporary assignment owes the person being moved a good introduction to the new group that includes an adequate rationale and an expectation of fair play.
  • Sense of futility – A person in a temporary assignment can become depressed simply due to a lack of foundation. The work being performed is difficult and seemingly unappreciated. Not having daily interface with former peers at the central office gives one a lonely feeling of isolation. If the assignment is working on a merger transition team, there is the constant pressure of who will be the survivors on the ultimate team. Not being in close physical proximity to the top decision makers on a daily basis can lead to additional anxiety that the person might be overlooked. In this situation, top managers need to assure the individual that it is precisely due to this person’s worth to the organization that he or she was picked to help design the integration process. There will be a good job at the end of the ordeal. Actually, people on the integration team have a natural advantage because they help invent the structure and rules for the merged entity. It is the people left behind to run the ongoing business who have the greater jeopardy once the musical chairs game comes to an end.
  • Burn out – When temporary assignments are for the purpose of designing details of a merger or acquisition, the technical detail and amount of work can be overwhelming. Transition teams are usually kept lean because, during the integration, both of the former businesses need to keep operating at top efficiency as well. There are just not enough resources to cover everything, so both the ongoing business resources and the integration team are forced to stretch to the limit. It is easier for the ongoing business to stretch because some people from lower levels can step up to temporary management positions to cover. For the transition team, life is more difficult. There are literally thousands of details to consider, and many mutual processes that need to be invented. The work is endless, critical, urgent, and highly emotional in nature. That, coupled with the individual living or working out of temporary housing, causes many people in these assignments to burn out, have health problems, or get fed up and leave. For this reason, senior managers need to provide some modicum of work-life balance or “R&R breaks.” One observation is that people on the edge of total burn out often do not realize their peril. One must consider the ongoing health and welfare of each person serving on a transition team.
  • Guilt or sense of punishment – Some individuals will over-analyze the nature of a temporary move. They may feel a sense of failure; after all, other people were not moved out. They wonder if this is a signal from top management that there is a serious issue or some chemistry problem with the senior people. The individual may feel he or she is being punished for being too aggressive, outspoken, or some other interpersonal skill shortage. If there is a suspicion of this flavor in the body language, it will seriously undermine the motivation of the moved individual to do a good job. To prevent unwarranted worry, top managers need to be transparent and share the true reason for a temporary assignment. If there are issues, then the individual is due an explanation and a chance to mitigate the damage to his or her reputation before being moved out.
  • Squishy Return Arrangements – It is common for a person on a temporary assignment to have no visibility to his or her return path. Will there be a good job at the end of the assignment? When will the assignment end? Was this little adventure good or bad for the person’s ultimate career? It can be a lonely and scary situation for a good performer to find him or herself in a remote site with little connection to the home office and no concrete way back home. A simple fix is to have frequent communications with the remote individual to assure him or her that the temporary service is appreciated and a return path is not going to be forgotten. It is easy for managers to get embroiled in the urgent matters of daily decisions and neglect individuals in remote areas who may be feeling insecure about their future.
  • The pasture – Unfortunately, some groups use a series of temporary assignments to encourage an under-performing individual to leave the organization. The jobs have marginal value, yet keeping the person on organizational life support seems kinder than pulling the plug. People who are being led out to pasture are usually well aware of the intent. Many upper managers hope it will cause the person to quit and leave, unfortunately in a lot of cases it causes the person to quit and stay. Here again, the antidote is candor and transparency. Let the individual know the truth so he or she can make appropriate choices rather than guess.

These are just 10 of the common issues with temporary assignments and how upper management can reduce the stress and pain having to do with them. Properly managed, temporary assignments can be invigorating and helpful to both the individual and the organization. If done poorly or without care for the individual, they can be a real problem.

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Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is author of:  Trust in Transition: Navigating Organizational Change , The Trust Factor: Advanced Leadership for Professionals , Understanding E-Body Language: Building Trust Online , and Leading with Trust is Like Sailing Downwind . Bob had many years of experience as a senior executive with a Fortune 500 Company and with non-profit organizations. 

Bob Whipple is currently CEO of Leadergrow, Inc., an organization dedicated to growing leaders. For more information or to bring Bob in to speak at your next event, contact him by email, phone 585-392-7763, fill in the contact form on the Leadergrow Website, or BLOG.

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Everything You Need to Know About Temp Jobs

Learn about temp jobs, temp agencies and whether they're the right fit for you.

What to Know About Temp Jobs

As COVID-19 shows no signs of slowing down, many people are frustrated and confused about their careers. The current economic crisis has many of us considering a side gig or temp work, either to make ends meet or to acquire needed skills before changing to a new industry or field. To help you make an informed decision, here's what you need to know before taking a temp job.

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What Is a Temp Job?

Temp jobs, or temporary jobs, are short-term jobs with a company, either for a short-term contract or a defined short-term period. For example, many companies are hiring temporary workers for the holiday season. A temp job could also cover a full-time employee’s position if they are sick or out on leave for an extended period of time. Temp positions normally do not include employee benefits, but some temp agencies offer benefits to employees who have worked with them for a certain period of time.

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Temp Jobs vs. Part-Time Jobs

If you are deciding on whether to take a part-time or temporary position, it’s good to know the key differences between the two. A part-time job is a permanent position at a company with no defined end date. Since a part-time employee is employed by the company they work for, they may receive certain employee benefits . A temp job is a short-term contract with a company through a temp agency for a certain amount of time or until a project is completed. While a temp job could be for full-time hours, temps are generally paid less than permanent employees.

What Are Temp Agencies?

Temporary employment agencies are a type of recruiting or placement firms that specifically help companies hire employees for short-term contracts. The agencies handle the recruiting, screening and interviewing process. Job seekers do not pay any fees to work with a temp agency since the fees are covered by the companies looking to bring on temporary staff.

If you are interested in working with a temp agency, you can speak to your network connections to find out if they recommend any. If someone you know has worked with a temp agency in the past, ask them about their experience. Research any recommendations online by visiting their websites. Use Yelp or other online business review sites to see who is listed in your area. When speaking with the temp agency, ask them about what markets or contract types they specialize in. Are any benefits included in the temp jobs? Once you choose a temp agency, you will provide them with your resume and have an interview. Once you are approved by the agency, they will contact you with temp jobs that match your skill set.

What Does Temp-to-Hire Mean and How Does It Work?

In some cases, temporary positions can lead to a permanent hire position within the company. This is often a stipulation of the temp job, but this may also happen by impressing the company during your short-term contract. Temp-to-hire positions can last up to six months with the possibility of the employer extending the contract further or permanently hiring the employee. If the employer and the employee agree to a permanent position, then the short-term contract would end and there would be paperwork to bring on the person as a full-time employee.

When to Pursue a Temp Job

With COVID-19 affecting so many industries , temp jobs are a nice way to keep your skills sharp and help pay the bills at the same time. They are also a good choice for someone considering moving into a new industry or someone deciding what their next career move should be. It’s also a great way for new college grads to gain experience that they can add to their resume. While it’s generally recommended to try to find temp jobs that best align with your skills, the pandemic has thrown that out the window to a certain extent. There is nothing wrong with taking a temp job to support your family, even if it’s not your first choice. You can impress a future hiring manager by showing them that you worked in an unfamiliar field instead of not working at all. This also highlights your dedication to your family, which is something that many can admire during this time.

Networking Opportunities

Temporary jobs can lead to new networking connections, opportunities and good references if you stand out as a worker. All of this can help you in your pursuit of a permanent job position. Make sure to keep track of the positive feedback you receive while working a temp job, since this can also be used on your resume and future job interviews.

6 Side Jobs to Make Extra Money

temporary assignment jobs meaning

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Finding the Right Compensation for Temporary Assignments

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temporary assignment jobs meaning

  • Determine the criticalness of the assignment. There are various instances where an organization will need to temporarily fill a role, and how they go about compensating the employee assigned to the temporary role should be preset and determined on how critical it is to the business.  
  • Filling in for an employee on leave. In a scenario in which an employee goes on leave and a person is asked to take over their job responsibilities for a defined time, a compensation bump should be added as a premium in the form of a line item of pay with their typical paycheck. 
  • Put a formal process in place. Having an established process makes good business sense because when an employee takes on a new role for a period of time, exercising the same responsibilities as the employee on leave, they should have the same pay opportunity. 
  • Quick-fix scenarios. Some work scenarios are more difficult to formalize a compensation structure for temporary assignments, such as an employee in a call center not showing up for work for an extended period without notice. Employees who fill in when needed should receive other reward items such as free lunches or gift cards that say “thank you” for picking up the additional workload. 

Temporary assignments, or the assignment of duties to an employee outside their regular scope on a short-term basis, often come with an increase in direct compensation. 

But how should that amount be determined? 

It all depends on whether the assignment is for a new project or simply a fill-in for a missing employee, said Julian Pawlowski, senior principal at Mercer. 

“[Temporary assignments] are common practice in the context of a major project and typically involve an additional scope of responsibility,” he said. 

On the other hand, with constant organizational changes, such as a promotion or other employee transitions such as maternity/medical leave, organizations may need to assign an employee to a temporary role to both support that transition and any gaps in the workflow that a change creates. 

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“Some roles have less influence on results and pay should be commensurate with that,” he said. 

Therefore, leaders must first determine the criticalness of the assignment to the business, Pawlowski said.  

“What will be the impact if someone’s not in place?” he said. “There really has to be a discussion about the risk if the project isn’t completed on time. What’s the risk if no one is covering that person’s responsibilities? Risk must be determined up front.” 

With core strategic projects, for example, there typically are very defined project plans with dependencies and outcomes so that organizations understand the scope of work that’s occurring and the employee understands the part of the workflow and outcome they are responsible for. 

From an administrative perspective, this should include an assignment letter, a plan document explaining the terms and conditions of the program, the award amount, timing and any actions that occur if a person leaves.  

“All that should be in place before the project begins so they are clear about what they are eligible for, how they earn it and when they earn it.”  

But the extra compensation — paid out at the completion of preset milestones — should not just be based on an individual’s performance, Pawlowski said.  

“There’s the participant’s support and input that should be measured individually, but also the team’s outcome,” he said. “So a composite score should determine that temporary assignment’s compensation range.” 

In a scenario in which an employee goes on leave and a person is asked to take over their job responsibilities for a defined  time, however, the compensation bump should be added as a premium — a line item of pay with their typical paycheck. 

“That way the person is recognized immediately for the time and work done, and reinforces the idea that the person is getting the opportunity and extra money immediately,” Pawlowski said. “It really helps with both employee motivation and retention.” 

Formalizing the Process 

For McKesson Canada and its 4,500 employees, temporary assignments that last a minimum of three months occur often enough that the company has a formal process in place. 

Isabelle Brissette, a McKesson Canada compensation consultant, noted the company had 29 temporary assignments for the past fiscal year. “Some of our maternity/parental leaves can last up to 18 months,” she said. 

Having a formal process in place makes good business sense, Brisette said, because when an employee takes on a new temporary role, exercising the same responsibilities as the employee on leave, they should have the same pay opportunity.  

McKesson Canada employees on temporary assignments receive a compensation package that al teast matches the new career grade’s minimum salary range, Brisette said. 

For roles in which the employee will take on new responsibilities for three months or more — sometimes up to 18 months to cover maternity/parental leaves — the employee will be placed in the new job code, with the new grade level and get the new bonus target associated with that role. 

Base pay, however, will not be increased.  

“We will put in a temporary bi-weekly premium as a percentage of base,” she said. “This bi-weekly premium usually ranges from 5% to 15%.”  

However, in light of new pay transparency standards , as well as because the employee will have access to the new salary range, McKesson ensures that the bi-weekly premium added to the base pay comes to at least the minimum of the new range. 

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Once the assignment is over, the employee goes back into their regular position and grade level, and the bi-weekly premium stops.  

McKesson has another process for a temporary assignment for extra responsibilities, Brisette said.  

“This is where an employee would remain in their current role but take on responsibilities from a colleague or a superior who is on leave for an unknown period of time (short-term leave, jury duty, etc.).” 

In these cases, she said, compensation is simply made by a lump-sum payment. 

Other Scenarios 

Some work scenarios, however, are more difficult to formalize a compensation structure for temporary assignments, Mercer’s Pawlowski noted.  

“Maybe there’s an employee in a call center who doesn’t show up or leaves unexpectedly and the remaining team picks up the workload,” he said. “That’s fairly common and there needs to be consideration in other areas beside direct compensation.”  

Employees who fill in when needed should receive other reward items such as free lunches or gift cards that say “thank you” for picking up the additional workload. 

“That’s a really important detail,” Pawlowski said. “There are many cases where it’s not formalized and there are gaps in the work and workers still need to pick up the slack.” 

Editor’s Note: Additional Content 

For more information and resources related to this article see the pages below, which offer quick access to all WorldatWork content on these topics: 

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How long can an employee work in a temporary status?

While there is no one answer to this question, a key factor in setting a time limit is benefits eligibility. If a temporary employee is working the same hours as a regular employee, with no set end date in sight, denying him or her benefits simply because of the "temporary" classification can be problematic.

Temporary workers are often ineligible for employer-provided benefits due to the limited duration of their employment. When employees classified as "temporary" are denied benefits and temporary jobs are allowed to continue without clear limits, it can be argued that the employer is denying benefits to otherwise eligible employees, thereby violating the Employee Retirement Income Security Act (ERISA).

While each employer determines what length of time defines temporary employment within the organization, it is recommended that such employees be hired for a fixed period of time or for the duration of a specific project, rather than for an ongoing period without limits. For the greatest protection, an employer may want to impose limits on the length of time a temporary employee can work that would not exceed the defined waiting periods for benefits. At a minimum, an employer should be able to state an end date to the temporary assignment, such as the end of a project, the return of an employee on parental leave or the end of a defined busy season to uphold the "temporary" classification.

To ensure the fair classification of temporary employees, employers should train hiring managers on the appropriate use of temporary workers, establish clear policies on the status of temporary employees and set specific time limits for temporary assignments.

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Compensation + Classification

Temporary assignments/stipends.

Policies and Procedures

Use the index below to navigate throughout this page

Temporary Job Changes

Incumbents may be eligible for additional compensation when  higher level  duties or  significantly different  duties are temporarily assigned. Typically the higher level duties must account for a substantial amount of the incumbent’s workload for a period of more than 30 working days and less than one year (different collective bargaining agreements may vary on this definition). Extensions beyond one year require approval by the compensation analyst. For instructions on how to submit a request for temporary stipend see Procedures for a Temporary Stipend. Updates to temporary stipends or requests for extensions must be submitted in Job Builder using the “Extend, Inactivate or Update Temporary Reclass/Stipend” action.

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Temporary Stipend (for Policy-Covered Staff)

A temporary administrative stipend may be paid to an employee who is temporarily assigned significant responsibilities of a higher level position or significantly different duties (25%+) not normally a part of the employee’s regular position ( see PPSM 30.III.B.9 ). Assignment of temporary responsibilities at a lower level does not warrant a stipend. Temporary Stipends are typically effective the date an employee begins performing the higher level duties at a significant portion of time (approx 25-30% or greater). They end when the higher level duties are no longer assigned. Stipends for employees are appropriate when increased responsibility lasts for at least 30 working days or longer. Temporary stipends may be approved by HR for up to one year. Stipends beyond one year require approval of Human Resources via an on-line request in Job Builder, but in no case may a temporary stipend extend beyond two years.

In recommending the stipend amount, managers should consider various criteria including the length of the assignment, position of employee in the salary range, complexity and scope of temporary duties, and comparisons with the salaries of others in the department.  The sum of the stipend and the base salary shall not exceed the maximum salary of the range into which the combination of permanent and temporary duties would be classified. 

Temporary Stipend (for Represented Employees)

An employee in a bargaining unit may be eligible to receive a temporary stipend when they are assigned  substantially all of the duties of a higher classification  for a significant portion of their time (usually 50% or greater), commonly referred to as an  "out-of-classification assignment" . Temporary stipends are typically effective the date an employee begins performing the higher level duties at a significant portion of time and they typically end when the higher level duties are no longer assigned by management. These appointments must be for a minimum of 2 weeks (longer for some bargaining units) up to a maximum of one year. Stipends beyond one year require approval of Human Resources via an online request in Job Builder, but in no case may a temporary stipend extend beyond two years. Please refer to the appropriate  collective bargaining unit agreement  for the policy on temporary out-of-classification assignments.

Procedures for a Temporary Stipend

To initiate a temporary stipend, the Department Head or Business Manager submits an online request by going into Job Builder, completing a "Temporary assignment (stipend)" action, and submitting it to Compensation for review. The online request must include all of the required pieces of information (see below) or it will be returned to the department with a request for additional information. Requests should be submitted as close to the begin date of the temporary assignment as is reasonably possible.

Process for an Online Submission:

  • Review the eligibility criteria for the employee. (For non-represented employees refer to PPSM.  For represented employees refer to the applicable collective bargaining unit contract.) 
  • Obtain needed departmental and / or Control Point approvals (as set by each department and division).
  • In Job Builder, select the employee's current job description, and begin a "Revise Job Description" action. Once you have begun the workflow, choose the "Temp Assignment (Stipend)" action type..
  • Complete the "Temp Assignment (Stipend)", Comp Information, and Action Justification tabs.  No changes are made to the content of the job description apart from completing any required fields that are new to the job description since the transition to Job Builder. 
  • On the Action Justification tab, attach an Organizational Chart and complete the Department Head and/or Control Point Approvals.
  • Submit the action to your Compensation Analyst for review and approval.
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Temporary job assignment vs. indefinite assignment

By tracy bunner, talkin taxes - | jul 6, 2015.

There are job expenses that can be deducted for job assignments that are temporary assignments that take the taxpayer away from the taxpayer’s home.

However, in order for job expenses such as housing, food and travel to be taken as a deduction, the taxpayer must determine whether the assignment is truly temporary.

A temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for one year or less.

If the job assignment meets the criteria then the taxpayer’s home does not change in relationship to job expenses. The taxpayer is considered to be away from home for the whole period he/she is away from the main place of work.

If the job is initially temporary and then becomes indefinite due to a change in the circumstances, the taxpayer may no longer deduct job related expenses.

A misconception is that the taxpayer can take a break or leave for a period of time to keep the job assignment under the one year mark. The IRS considers a series of assignments to the same location, all for short periods but that together cover a long period to be considered an indefinite assignment. If the assignment is considered indefinite the location is considered to be the taxpayer’s new home and expenses cannot be taken.

Temporary job assignments often occur with traveling nurses and construction workers. Amounts paid for food, lodging, mileage, and other expenses necessary to maintain a temporary home may be deductible.

A taxpayer must be able to show that the assignment is indeed temporary and was not expected to turn into an indefinite assignment.

If the taxpayer receives an allowance for living expenses and the assignment becomes indefinite, the taxpayer must include in income any amounts received from the employer for living expenses. This is true even if the amounts are called travel allowances and the taxpayer accounts to the employer for them.

The taxpayer may be able to deduct the cost of relocating to the new tax home as a moving expense. Expenses for moving have some limitation to what is deductible.

Tracy Bunner is an enrolled agent and tax preparer with an office in Harrisville. She can be reached at 801-686-1995 or at [email protected].

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