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How to Prepare Your Business for Seasonal Employees

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Tree farms gear up for only a short, swinging season at the end of each calendar year. For that sweet, pre-holiday time business booms. Like tree farmers, many other industries experience a similar seasonal flux -- including retail trade, agriculture and resort properties.

For businesses that experience a particularly high season and have little need for a full staff year-round, hiring temporary staff (or "temps") is an ideal way to supplement personnel. However, employers are often left uncertain about what is and is not required to manage and protect their seasonal employees.

To help provide some clarity, below is an outline of risk management best practices for operations with temporary employees -- just remember the acronym TEMPS:

  • Trained


  • Eligible


  • Managed


  • Protected


  • Secure


Trained:

Create a solid training program specifically tailored to the needs of short-term workers. Temporary employees will have a weaker grasp on your business practices and policies, so they are at a higher risk of making mistakes or having an accident.

Make sure all temporary employees receive the following:

  • Formal orientation with documented materials on company policies and procedures. These should clearly outline the expectations of employees and safety practices.


  • Training on all equipment used in your operation (i.e. registers, cooking equipment, lifts, tractors, sharp tools, etc.).


  • Emergency drill to simulate crisis situations, including evacuation and emergency exit routes.


Eligible:

Outsource your temporary hiring needs to a reliable staffing agency where sufficient employee screening is a quality standard, or offer temporary opportunities independently and pre-screen employees on your own.

Employee screening measures should include:

  • Identity and social security number verification.


  • Past employment references.


  • Verification for necessary credentials, such as education or professional licenses.


  • Sex offender registry check, drug testing and vehicle history.


  • Testing and thorough interviewing to confirm character and skills.


Managed:

Make sure a manager or more experienced full-time employee is present at all times to enforce safety protocols and to guide temporary workers. Maintain a zero-tolerance policy for disregard of uniform safety requirements, such as protective gloves or steel-toed shoes.

Most importantly, encourage regular breaks to ensure your employees remain focused, nimble and energized throughout the day.

Protected:

Your business is legally required to carry workers' compensation insurance coverage as seasonal employees are still covered by most fair-employment laws. To pinpoint the details of your state's specific workers' compensation regulations, visit the Department of Labor's Division of Federal Employees' Compensation page.

Furthermore, updates introduced by the Affordable Care Act can be confusing for business owners not familiar with new employer requirements, especially for seasonal employees. I debunked some of the most common uncertainties in my blog post, Fact or Fiction: The Benefits Required for Seasonal Employees.

Employers who retain an average of 50 full-time employees per year are required to offer affordable health insurance to employees who work more than 30 hours per week. If your business doesn't fit the definition of a "large employer," as defined by the Patient Protection and Affordable Care Act, you do not need to provide coverage. However, to ensure the safety and health of your seasonal employees, you should encourage them to visit HealthCare.gov to enroll in an insurance plan.

Secure:

Risk levels for temporary employees vary from job to job. A retail clerk versus a position chopping down Christmas trees will, of course, pose different risks and liabilities for your operation.

  • Keep Records: Maintain a detailed account of where each employee works, the tasks they are assigned to, amount of hours completed and their rate of pay. This information will be important for setting rates for workers' compensation insurance.


  • Track Claims: Keep a record of on the job injuries and workers' compensation claims made. Monitor the frequency of these claims and be sure to note when unusual patterns occur. This will help in consideration for future employment eligibility during seasonal hiring needs.


It should be noted that, while you cannot discriminate or deny someone employment based on an injury, you can review their file for following company protocols and procedures. For example, did the employee file the claim while still onsite and within a timely manner? Did their injury result from disregard for company safety procedures? Use this information to protect your business from fraudulent and expensive workers' compensation costs.

Business owners with seasonal highs and lows need to think through methods of how to protect against liabilities created by the necessity of hiring temporary employees. The legal and financial implications are unique to that of full-time employees, and taking preventative measures as described in TEMPS will protect your business' bottom line.

For more information on business insurance, visit the INGUARD blog.

Note: A version of this article originally appeared on www.INGUARD.com.

Image Credit: jill111 via Pixabay

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