Are you trying to understand the main differences between a full-time employee and what is a temporary employee? Keep reading to understand the particularities, the temporary employee meaning, how it affects their mental health, and more!

What is a Temporary Employee?

A temporary employee is a worker hired for a specific, short-term purpose within an organization, typically for a fixed period or until the completion of a particular project. 

The temporary employee meaning lies in their defined, limited employment contract, distinguishing them from permanent or full-time employees. These workers are often brought in during peak seasons, to cover for staff on leave, or to assist with temporary surges in workload. 

It’s important to mention that temporary workers have the same rights as full-time employees according to UK law. This means that, even though their contract is shorter, they still get statutory sick paid days, minimum wage, rest breaks, etc.

pros and cons of hiring a temporary employee at work

Why Is Understanding Temporary Employee Important for HR, Business Owners, and Team Leaders?

Understanding the role of a temporary employee in the workplace is essential for HR professionals, business owners, and team leaders, as it directly affects staffing flexibility, resource management, and productivity. Here’s why grasping the temporary employee definition is crucial:

  • Understanding temporary employees provides flexibility in managing fluctuating workloads. Business owners can adapt to market changes, like seasonal demands, or unexpected project needs without committing to long-term contracts.
  • By hiring temporary staff during peak periods or for specific projects, HR and business leaders can control labor costs while meeting operational demands without the long-term financial obligations of permanent employees.
  • During high-demand periods, hiring temporary employees helps maintain productivity by ensuring sufficient staffing levels. Team leaders can avoid overworking permanent employees and reduce the risk of burnout, leading to a more balanced and productive workforce.
  • Temporary employees offer a trial period for both the company and the worker. HR professionals and team leaders can assess a temporary employee’s skills and fit within the organization, making informed decisions about future permanent hires. This reduces the risks associated with long-term employment commitments.

Types of Temporary Employee

Temporary employees can be hired in various forms depending on the organization's needs and the nature of the job. Each type comes with different expectations and implications for both the employee and the company. Below are the main types of temporary employees, with a focus on their workplace role, impact on performance, and the employee support they may require.

  • Seasonal Employees: Hired during specific times of the year to handle increased demand, such as during holiday seasons or peak business periods. They often face high-pressure and fast-paced environments and need quick onboarding. HR teams should ensure employee mental health is supported through adequate breaks and communication. 
  • Project-Based Employees: These employees are hired for the duration of a specific project, with employment ending upon project completion. Their role in the work environment is highly specialized and focused. Since their tasks are often complex, they may require more in-depth onboarding and training. 
  • Interns: They are usually temporary employees brought in to gain experience in a particular field, often for a set period such as a semester or summer. Interns provide valuable assistance while learning on the job, but they may require substantial guidance and employee support to ensure a meaningful learning experience. 
  • Temporary-to-Permanent Employees: These employees are initially hired on a temporary basis with the potential to transition into a permanent position, depending on their performance and company needs. The opportunity to transition from temporary to permanent status can positively influence employee mental health and motivation. 
  • Agency Temporary Employees: Hired through staffing agencies, these workers are employed for short-term assignments. The agency handles most HR-related matters, while the company oversees day-to-day tasks. Since they work for multiple clients, agency workers may not feel deeply connected to a specific work environment, which can affect engagement.
  • Remote Temporary Employees: Temporary workers who perform their duties remotely, often hired for specific skills, tasks, or projects. They require clear communication and strong management practices to ensure they remain productive. Ensuring access to virtual employee support, such as mental health services or EAPs, helps maintain their well-being and effectiveness.

How Does a Temporary Employee Influence Workplace Productivity?

A temporary employee in the workplace can significantly impact productivity, offering both opportunities and challenges. Their contribution to team efficiency and overall organizational performance largely depends on how well they are integrated and managed.

  • Flexibility and Efficiency: By filling immediate gaps in the workforce, temporary employees can help prevent burnout among full-time employees, ensuring that the entire team remains efficient and focused on high-priority tasks.
  • Impact on Team Dynamics and Engagement: If they feel excluded or unsupported, it can lead to a lack of engagement, negatively impacting their contribution to the overall productivity of the team. On the other hand, when well-integrated, temporary employees can bring fresh perspectives and skills, enhancing team collaboration and efficiency.
  • Maintaining Long-Term Productivity: According to the temporary employee definition, they are not permanent members of the team, which can lead to a lack of long-term continuity if they are not given sufficient training or resources. Ensuring proper training and access to employee support resources helps maximize their contribution.

Real-World Examples of Temporary Employees in the Workplace

Temporary employees are commonly hired across various industries to address specific needs or short-term demands. Here are some examples of temporary employee:

  • Large retail stores, especially during the holiday season, hire temporary employees to handle the increased customer flow. These employees help with stocking, cashier duties, and customer service, ensuring the business can meet demand without overloading permanent staff. 
  • Hospitals often hire temporary nurses or other healthcare professionals during staff shortages, such as flu season or when permanent employees are on maternity leave. These temporary employees help maintain a smooth flow of operations and patient care, ensuring no drop in the quality of service.
  • In tech companies, temporary employees are frequently hired on a project basis to assist with software development, coding, or IT support for large, one-off projects. Once the project is completed, their contract ends, giving the company flexibility in staffing without long-term commitment.
  • Event management companies hire temporary employees for short-term roles, such as setup crews, ushers, or servers during large events or conferences. These workers handle logistics and customer service, ensuring the event runs smoothly, without the company needing permanent staffing for occasional events.
  • Marketing agencies often bring on temporary employees in the form of interns, who assist with research, social media, and campaign execution. While internships are temporary, they provide essential support during busy periods and offer students real-world experience while contributing to the agency’s goals.
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How Can a Temporary Employee Impact Employee Mental Health?

The presence of a temporary employee in the workplace can influence the mental health of both permanent staff and the temporary worker in various ways. 

Temporary employees often face stress related to their contract's impermanence. The Transactional Model of Stress and Coping by Lazarus and Folkman explains that stress arises from an individual’s perception of their situation and their coping resources. For temporary workers, knowing that their role is not permanent may lead to heightened anxiety, especially if they rely on the job for financial stability. 

Moreover, temporary employees may experience feelings of exclusion from the broader team due to their temporary status. According to Social Identity Theory by Henri Tajfel, individuals derive part of their self-esteem from their membership in social groups. If temporary employees are not fully integrated into the work environment, they may feel disconnected, leading to reduced morale and engagement. 

On the other hand, hiring temporary employees can alleviate workload pressures on full-time staff, preventing burnout and improved employee mental health. 

According to the Conservation of Resources (COR) Theory by Hobfoll, stress occurs when individuals perceive a threat to their resources (like time and energy). By redistributing tasks to temporary employees, full-time staff can preserve their mental energy, reducing stress levels and maintaining their mental well-being. 

For these reasons, organizations should integrate mental health support, like Employee Assistance Programs (EAPs), to support both temporary and permanent employees. 

FAQs: Temporary Employee 

How does an EAP help with a temporary employee?

An Employee Assistance Program (EAP) supports a temporary employee at work by offering mental health resources, counseling, and stress management services. Since temporary employees may face anxiety over job insecurity and exclusion, EAPs provide them with access to confidential support to navigate these challenges.

How should temporary employees be managed at work?

Temporary employees should be managed with clear communication, effective onboarding, and integration into the work environment. Ensuring they understand their role, responsibilities, and support systems helps maintain productivity. Managers should promote engagement by including temporary employees in team meetings and offering them access to resources, like training and feedback, to enhance their performance.

How can temporary employee issues be prevented or addressed?

Temporary employee issues can be addressed by providing sufficient employee support through training, clear expectations, avoiding favoritism, and inclusion in the workplace culture. Ensuring they have access to the same resources as permanent employees, such as mental health services via EAPs, and fostering open communication helps prevent feelings of isolation or disengagement.

How can training address issues related to temporary employees?

Training can educate managers and HR teams on how to integrate and support temporary employees effectively. Training should focus on addressing the unique challenges temporary employees face, such as job insecurity or isolation.

How can companies create policies around temporary employees?

Companies can create policies by defining the role and responsibilities of a temporary employee at work, setting clear terms for the duration of employment, and outlining the benefits available, such as access to EAPs. These policies should ensure that temporary workers are given proper training and support to maintain team engagement and productivity.

What role does a temporary employee play in workplace morale and mental health?

Temporary employees can impact workplace morale positively by providing much-needed support during busy times, alleviating pressure from full-time employees. However, if not managed well, their presence can lead to stress or anxiety about job security for both permanent and temporary staff.