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Hiring seasonal workers for the summer is a smart option for many small business owners. You may not need to hire full-time or part-time staff, and hiring seasonal workers may be all you need to keep your operations running smoothly during the busiest time of the year.

But hiring seasonal workers can be tricky. To help, Next Insurance has put together this guide to pay rates, insurance requirements, benefits, and summer hiring pitfalls.

What is seasonal hiring?

Companies hire for short-term seasonal summer jobs, whether for part-time, full-time, or contract positions. Seasonal hiring is a specific strategy that companies use to have more staff on deck during peak periods.

How long are seasonal jobs?

A summer hiring season can last for several months. But if a restaurant is planning a large crowd for, say, a special Fourth of July barbecue, seasonal hiring can last for a single day. The season depends on the demand for the product and/or service you offer, and the length of the season.

A business owner may need to hire seasonal staff to meet demand in the spring if they own a lawn care business. A camp might hire seasonal staff for just the summer weeks, plus a week or two of prep and cleanup.

It’s very common for retail store or delivery business owners to be looking for staff during the holiday season. But if you sell chocolates and flowers, Valentine’s Day could be an equally busy holiday season for retail.

Pay rates and overtime for hiring seasonal employees

Most employment laws also apply to seasonal workers. However, there are some differences in pay and paid leave.

Each state has different requirements (which may differ from federal laws). Most employees must be paid at least the federal minimum wage, with overtime paid at an hour and a half. This includes seasonal employees.

The Fair Labor Standards Act (FLSA) sets the minimum wage at $7.25 per hour. However, many states have higher minimum wage requirements that you must meet. (Find the minimum wage in your state.)

That said, your business may be exempt. According to the U.S. Department of Labor, certain employees may be exempt from minimum wage and overtime provisions, including some seasonal workers. Consult an attorney to verify your requirements before hiring for the summer.

Vacation Rental Insurance Requirements

Most states require businesses with at least one employee to carry workers’ compensation insurance. This coverage can help cover medical expenses, lost wages, and other costs related to workplace injuries or illnesses.

Even if you only hire seasonal staff, you’ll likely need workers’ compensation coverage. Seasonal employees and temporary staff can file a claim if they’re injured on the job.

And here’s the catch: Seasonal workers often tend to be more prone to injury because they receive less training and are generally less experienced. Make sure you have the proper training and protection before an accident or injury occurs.

Advantages and disadvantages of summer seasonal staff

Depending on the industry, hiring seasonal employees can be helpful. Here are some benefits for business owners:

• Flexible hours : Quickly scale up or down your workforce by controlling how many people you hire, when you hire them, and how long you hire them.
• Reduction of employment costs: Eliminate the costs of hiring full-time staff by hiring seasonal employees to work only during peak periods.
• “Test-driven” employees: Use the seasonal hiring period to determine if an employee is a year-round fit for your business.

Some potential drawbacks of hiring for summer seasonal jobs include:

• Workers with less training: Due to the short duration of employment, you will have less time to train seasonal employees. This could lead to workplace accidents or lower quality work.
• Lack of loyalty: Seasonal employees aren’t as likely to succeed as regular employees, which can hurt their productivity and performance. They may also be more likely to leave mid-season, forcing you to hire again during the busiest time of year.
• Legal obstacles: Hiring seasonal staff is subject to different laws and requirements. You could face legal issues if you are not careful.

5 Tips for Hiring Seasonal Employees

Seasonal workers can help you fill labor shortages during the busiest time of year. Here are some helpful tips for finding quality seasonal workers:

1. Start as early as possible: Finding the right seasonal worker can take several weeks. Accelerate your efforts quickly to ensure your new temporary staff is trained and ready.
2. Find candidates looking for seasonal work only: Many candidates are not able to hold a long-term position. A graduate student or stay-at-home parent looking to re-enter the workforce may be an ideal candidate.
3. Give preference to returning workers: Hiring and training staff takes time. You can gain efficiency by prioritizing seasonal employees returning to work.
4. Hire based on attitude: When interviewing candidates, make sure your seasonal employees will fit well with your company culture. Most seasonal jobs don’t require any specific skills, and hiring based on attitude can be more beneficial for your business.
5. These companies are most likely to benefit most from seasonal hiring:

• Resorts
• Youth Summer Camps
• Construction
• Ski stations
• Lawn care
• Landscaping
• Agriculture
• Food service
• Retail stores
• Golf course
• Delivery services
• Drive-in cinemas

This story was produced by Next Insurance and revised and distributed by Stacker Media.