Sunk costs, quick turnover, training expenses — the list goes on. Anyone who’s ever hired staff knows there are multiple costly risks to staffing.
The best of the best new hires come onboard only to find another “better” job weeks later. Or someone presents well in the interview, then starts the job and you discover that what they told you doesn’t align with their true skill set. It can be frustrating.
Wouldn’t it be great to be able to try out an employee before hiring them permanently?
Temp-to-hire models offered by many staffing companies offer the flexibility to try out an employee without long-term obligations and then hire them permanently if they prove themselves on the job. In today’s low-employment environment, it could be a great option as fast-casual and quick-serve restaurants continue to fill with diners.
Temp-to-hire to meet industry growth
The foodservice industry, especially the quick-serve, fast-casual, and on-site segments, grew in 2024 and is expected to continue expanding in 2025. With that growth will come the need for more staff, even in operations that have embraced kiosks and other automated ordering systems. Many of those operations are finding that automation hasn’t diminished their staffing needs; instead, they are changing how staff are used, moving them from taking orders to preparing and expediting them. With continually increasing demands for labor, more foodservice operators are looking to creative hiring methods to meet their needs.
Advantages of temp-to-hire
Using temp-to-hire is like taking a short-term lease before making a full investment. During the lease period, it becomes clear if there’s a fit, for both you and the potential new employee.
In a temp-to-hire situation, the employer can observe the staff member on the job and determine if they have the necessary skills for the position, work well with the rest of the team, and fit into the company’s culture. If they do, the employer only needs to pay the modest conversion fee to the staffing company, and they can make the worker a permanent employee.
If the temp doesn’t work out, the employer simply notifies the staffing company, who will provide a new candidate who is a better fit based on feedback from their client. The employer doesn’t need to go through the drama and expense of firing an employee.
How temp-to-hire works
Temp-to-hire (also known as temp-to-perm or contract-to-hire) arrangements can take a couple of different formats. In some situations, an employee initially hired as a temp turns out to be such a good performer that the employer decides to make them a permanent team member. In those cases, the employer pays a conversion fee to the staffing company and onboards the employee as a permanent member of staff.
In other cases, the employer arranges with their staffing partner for a temporary employee they hope to hire permanently. Usually, the temporary posting is for three to six months, during which time the employer determines if the candidate is a good fit. These arrangements are common when the role to be filled is key to the company’s performance or requires specialized skills, such as an executive chef in a restaurant.
Ways to improve hiring success
However a new employee is brought on board, there are some steps employers can take to improve the likelihood they’ll be successful in their new job:
Committed training: Everyone works better when they know what’s expected of them. Committing to a good training program rather than a “You’ll catch on once you get started” mindset is well worth the time and effort. Training videos are an efficient way to make sure everyone doing the same type of job gets the same instructions. When working with a staffing company, ask if they provide training for their candidates. The best ones will give their candidates training for the positions they’re being hired to fill.
Intentional onboarding: Onboarding takes training a step further. It involves introducing the new hire to the company culture to help them understand not just the how of their job, but also the why. Onboarding is all about making a new employee feel like part of a team rather than a cog in a machine. Connecting a new hire to other employees, taking time to explain management’s vision, and inviting them to share how they see their own success connecting with that of the company can go a long way toward building loyalty.
Moving ahead with temp-to-hire
Temp-to-hire can be a great option, especially for hard-to-fill positions. To go that route, look for a staffing company with experience in the hospitality industry and a wide candidate pool. Make sure they have a strong temp-to-hire program. Provide plenty of details about the position and the company’s expectations, then focus on operations while the staffing firm finds high-quality candidates for the position.
AUTHOR BIO
George Lessmeister is CEO and founder of LGC Hospitality, a national staffing firm headquartered in Indianapolis. LGC has offices in over 40 U.S. cities. Team members work with hotel and restaurant leadership to place executives and temporary workers.
