Workforce Words #2: A Few More Terms You Should Know
There’s always more to learn! If you got something out of our first “Workforce Words” post , here are a few more terms you should be familiar with.
Professional Employer Organization (PEO)
A staffing industry service that assumes, via contract, a significant portion of employer responsibilities and associated risk for either part or all of a client's workforce.
A segment of temporary help that includes professionals in the accounting field (accountants, auditors, CFOs, etc.), legal (paralegals and attorneys), sales and marketing professionals, and managerial temporaries.
The process of locating and screening a candidate or candidates for an employer as part of a search assignment. Also used to describe overall general efforts to bring in temporary employees. "Recruitment" generally implies the search for candidates who meet specific client specifications rather than the marketing of available applicants to employers.
Recruitment Process Outsourcing (RPO)
When a provider acts as a company's internal recruitment function for a portion or all of its jobs. RPO providers manage the entire recruiting/hiring process from job profiling through the onboarding of the new hire, including staff, technology, method and reporting.
Refers to a work assignment of limited duration.
The pre-planned use of alternative or flexible staffing strategies by the customer. This may include the use of temp-to-perm hiring (see below), planned temporary staffing for work cycle peaks or projects, or payrolling, for example.
The provision of temporary workers to a client company to supplement the current workforce for peak loads, special projects, or planned and unplanned worker absences. “Supplemental Staffing” also describes the regular practice of using contract medical staff in hospitals and other medical institution settings.
The furnishing of employees to meet the short-term and/or project needs of another employer. While “Temporary Help” originally meant replacements for office or light industrial workers, the term has come to be used across a broad range of skills and occupations to substitute for employees on leave, on vacation, or in emergencies, or to provide supplemental support where there are temporary skills shortages or specific projects or peak load needs.
An employment service concept in which a client company plans to make a permanent placement hiring decision during or after a temporary help assignment. In a "temp-to-perm" situation, only temporary workers who are also seeking a similar type of permanent work would be sent on the assignment. Where a temporary assignment just happens to "go permanent," it may be called a "temp-to-perm" hire after the fact, but it is generally not considered to have been a permanent placement.
Vendor On Premises (VOP)
On-site coordination of a customer's temporary help services through an exclusive, long-term general contractor relationship with a temporary help company. The designated Vendor On Premises may enter into subcontracting relationships with other temporary help suppliers, or such relationships may be specified by the customer.