How to Hire Temporary Employees (2026): A Step-by-Step Guide

The hospitality sector has a constant need for temporary employees. Whether you’ve got an unexpected shift to fill or need temps for a busy season, you’ll always need temp talent in your business. 

In this article, are 8 simple steps to follow, plus 4 templates, and quick-and-easy ways to source temp employees. 

How to hire temporary summary:

1. Define duration + schedule + output
2. Choose hiring route (agency vs direct vs platform)
3. Write a pay/schedule-clear temp job post
4. Source candidates in 3–4 channels
5. Screen fast (availability + reliability + basics)
6. Interview + practical skills check
7. Onboard in 30–60 minutes (SOPs + expectations)
8. Measure performance + decide extend/end/temp-to-hire

Before we get into the specifics of how to hire temporary employees, let’s be clear on what a temp employee is and isn’t. 

Choose the right hiring route (simple decision guide)

There are three main hiring routes for any restaurant, chain, or F&B venue:

• A staffing agency (that acts as an “employer of record”)
• Hiring temp employees directly (W-2). 
• A contractor/freelancer marketplace (1099). 

Let’s look at how these compare. 

Route A: Staffing Agency (W-2 via “Employer of Record”)

Best for:

• Fast headcount, larger staffing numbers needed. 
• Reduced HR administration
• Payroll and tax outsourcing

The agency recruits, hires, handles payroll, and manages tax filings. You manage the team members on-site. 

Pros: Fast, a low administrative burden (the agency does all of that for you).

Cons: More expensive because you’re paying all of the pass-through costs and agency fees (can be 40% more expensive than the staff member) 

Route B: Hire Temporary Employees Directly (W-2)

Best for:

• Greater control
• Lower long-term costs
• A great temp-to-hire strategy

But this means that you need to manage:

• Payroll
• Tax withholding
• Compliance
• Workers’ compensation

Pros: Cost control and direct oversight

Cons: More HR responsibility

Route C: Contractor Marketplaces (1099 Contractors, NOT Temp, W-2 Employees)

Platforms such as shiftNOW, Upwork, TaskRabbit, Thumbtack, and even Indeed can connect you with freelancers (1099 contractors).

Important to note: Independent contractors are not temporary employees or employees of any kind. Contractors control how work is performed and typically supply their own tools.

Misclassifying a contractor (1099) as an employee can create compliance and tax risk, and generally, it isn’t worth doing.

What Is a Temporary Employee?

A temporary employee is a worker hired for a limited duration under an employment relationship (typically W-2 in the U.S.).

Temporary employees could be:

• Hired directly by your company (you handle payroll and taxes), or
• Recruited through a staffing agency that acts as the employer of record (aka, for tax and other purposes, they’re the “employer” even though they are working for your restaurant). 

Temporary employees (W-2) are different from independent contractors (1099 workers). 

Contractors (1099) are not employees and should be treated as a separate category.

Now, let’s go through the 8 steps you need to take to hire a temp employee, and then you can copy and paste some handy templates that will save you hours of work. 

1. Define the duration, schedule, and expected output

Before you post any temp jobs, you need to clarify:

• The start and end date
• Weekly hours
• Shift times
• Core responsibilities
• What “good performance” looks like

This prevents mismatched expectations and reduces turnover, or worse, no-shows when you need someone to fill an empty shift.

2. Choose your hiring route

Decide whether you will:

• Use a staffing agency (fastest, less admin)
• Hire directly as W-2 employees
• Use contractor marketplaces (if the role qualifies as independent contractor work)

A quick decision guide appears below.

3. Write a clear, pay-transparent job post

Make sure to include:

• Hourly rate
• Shift schedule
• Duration
• Location
• Required experience
• Physical requirements (if relevant, like lifting boxes and bottles, or working in hot kitchens on your feet for hours)

Clarity improves applicant quality and reduces no-shows.

An example of this could be: “Line Cook needed for the Grill station, 4 weekend shifts (Fri, Sat, Sun; 16:00 - 23:00), $25/hour, 2 X 30 min paid breaks, uniform will be provided, please arrive 30 mins early to get ready, and FOH tips shared with kitchen every evening. Parking around back. Fast-paced kitchen, quality expected and delivered, working with a great team. Long-term potential for the right person.” 

4. Source candidates across 3–4 channels

Common channels include:

• Staffing agencies
• Digital hiring platforms, like shiftNOW.
• Job boards
• Internal referrals

Using multiple channels shortens time-to-fill. We’ve listed options further down this article. 

5. Screen quickly

For temporary roles in the hospitality sector, speed, prior experience, and reliability really matter. Focus on the following:

• Availability
• Reliability history
• Relevant experience
• Pay expectations (or what you can offer)
• Earliest start date

A 10-minute phone call should be enough, and we’ve included a template you can use for this. 

6. Conduct a short interview or skills check

For kitchen and restaurant roles, consider using the following questions:

• Scenario questions
• Quick practical demonstration
• Review of prior similar shifts or projects

The goal is capability validation, not a culture deep-dive.

7. Onboard in 30–60 minutes

It’s always best to provide the following consistent onboarding experience:

• Role-based SOPs
• Clear expectations
• Point of contact
• Safety rules
• Timekeeping instructions

Structured onboarding improves first-shift performance.

8. Measure performance and decide next step

After the first week, you or the manager responsible needs to evaluate:

• Attendance
• Speed and accuracy
• Coachability
• Team interaction

Then make a decision on the following:

• Extend
• End assignment
• Convert to full-time (temp-to-hire)

We hope you’ve found that helpful. Below are templates you can use. 

Templates (Copy + Paste)

1. Temporary Job Post Template

Please adapt and use this accordingly: 

• Job Title:
• Location:
• Shift Duration:
• Schedule:
• Pay Rate:
• Responsibilities:
• Requirements:
• Start Date:
• How to Apply:

2. 10-Minute Phone Screen Script

Please adapt and use this accordingly: 

• Are you available [dates/times]?
• Can you reliably commute to [location]?
• If applicable, could you handle a last-minute shift/call out? 
• Tell me about a similar role you’ve worked.
• Are you comfortable with the pay rate of [$X/hour]?
• When can you start?
  
  

3. Day-1 Onboarding Checklist (30 Minutes)

1. Review the SOPs
2. Confirm the schedule
3. Introduce them to their supervisor
4. Make sure they know who to ask if they’ve got questions 
5. Explain safety procedures
6. Provide tools/uniform, and anything else they’ll need 
7. Define performance expectations
8. Have they met the “What good looks like?” criteria for this role (see the scorecard below, but apply to their first day)
9. Confirm the time tracking process

4. 1-Week Performance Scorecard

Rate 1–5 1–5 scale (1: No, Terrible > 5: Yes, Excellent):

• Attendance & punctuality
• Productivity
• Accuracy
• Teamwork
• Coachability

Decision:

• Extend the current temp role 
• End
• Temp-to-hire (offer a permanent job)

Compliance Basics (U.S.) for Temporary Employees

The following compliance basics are essential if you are hiring W-2 temporary employees directly, even if you’re doing this through a platform like shiftNOW:

• Form I-9: Required for employment eligibility verification
• Form W-4: Required for tax withholding
• Payroll taxes: Employer must withhold and pay Social Security and Medicare (FICA), federal unemployment (FUTA), and applicable state taxes
• Workers’ compensation coverage is required
• Overtime laws vary by state

If using a staffing agency as the employer of record, the agency typically handles payroll tax filings and W-2 issuance.

If you’re using independent contractors (1099), they handle their own tax payments, but the classification must meet IRS guidelines.

If you are part of a larger chain, it’s always worth consulting HR or legal counsel for state-specific rules.

Below are the best options for hiring W-2 temp employees and 1099 contractors. 

Where to source W-2 temporary employees fast 

When it comes to W-2 employees, your main options are: 

• Temporary staffing agencies (that usually act as the EOR)
• Hospitality staffing platforms (depending on whether they provide 1099 contractors or W-2 employees)
• Job boards, like Indeed
• Referrals from staff, customers, and social media
• Local programs that help people get jobs in the hospitality sector. 

Where to source 1099 contractors (not temp employees)

Hiring temporary employees costs money, so you’ve got to make sure the costs are in line with your budget. Remember that the right platform can also help you manage costs effectively. The best tools combine speed, transparency, and flexibility. 

1. shiftNOW

shiftNOW is an excellent platform for hiring temporary workers. This is particularly true in the hospitality and service sectors. It offers all the essential features like:

• A user-friendly interface
• A robust vetting process
• Instant payouts
• Comprehensive reviews
• Flexible payment options 
• Temp workers are vetted to ensure they have relevant experience
• Supports on-demand, seasonal, event, and full-time hiring
• Transparent, predictable, and affordable pricing options

‍The platform is especially helpful for filling shifts quickly and reducing staffing gaps with pre-screened talent.

Ready to get started? Explore shiftNOW today to post your first job. shifNOW has you covered when you need temporary staff.

Request a Demo

2. Upwork

Upwork is a well-known platform for finding freelancers and temporary workers across a wide range of industries. These include tech, design, writing, and customer support. 

It offers robust search filters, hourly or fixed-price contracts, and a work diary for time tracking. The platform’s payment protection and rating system make it a trustworthy choice for businesses of all sizes.

3. TaskRabbit

TaskRabbit is ideal for finding temporary workers for various tasks and projects. These include delivery, moving help, event setup, and general labor. 

The platform offers a straightforward process for posting jobs and reviewing candidates. Instant payouts, real-time availability, and localized matching make it perfect for quick-turnaround needs.

4. Thumbtack

Thumbtack connects businesses with local professionals for various temporary jobs. This runs from home services to event staffing. It offers detailed profiles, reviews, and ratings to ensure you hire quality workers. 

The platform’s instant payout feature and flexible payment options are also beneficial for employers. Thumbtack is especially useful when you need specialized help on short notice in your local area.

shiftNOW: How Operators Hire Reliable Temp Staff 

shiftNOW connects restaurants with a pool of pre-vetted, skilled hospitality professionals. They're ready to step in at a moment's notice. This can be a critical resource for efficiently managing short-term staffing needs. It doesn't compromise service quality.

With shiftNOW, you will benefit from: 

• Temp workers are vetted to ensure they have relevant experience
• Supports on-demand, seasonal, event, and full-time hiring
• Transparent, predictable, and affordable pricing options
•  Uses video profile hiring and the temp-to-hire approach to make sure that workers have relevant experience in the hospitality industry. 

Hiring Temporary Employees Frequently Asked Questions (FAQs) 

What is the difference between hiring temporary employees and full-time employees?

Temporary employees work for a specific period or project. This provides businesses with flexibility and cost savings. Full-time employees offer long-term stability and deeper integration into company culture. However, full-time staff do come with higher overhead costs.

Temp employee vs contractor?

A contractor or temp employee sounds similar but isn’t the same. A temp employee is a limited-duration employee (W-2). A contractor is completely self-employed and will always fill out a 1099 form for the IRS for every contract-based job they undertake. 

Whether you are employing someone for 1 day or 1 year, you are giving them a temporary contract of employment. If you do without a contract, it could cause compliance and taxation problems, so it’s always better to have a contract for a temp employee. 

Do I need an I-9 for temps?

Yes, it’s required if you’re the legal employer. If not, an agency/EOR typically handles it.

Agency vs direct hire costs: what’s the difference?

The main difference is that direct-hire costs are always cheaper, even when you hire through a digital platform like shiftNOW. Agencies always charge more because they pass on all of the employment-based costs to clients, and they need to make a profit, too. 

Which sectors benefit the most from hiring temporary employees?

Sectors like hospitality, retail, events, and gig-based services benefit the most. Businesses that experience seasonal demand fluctuations or need specialized skills for short-term projects can maximize efficiency with temporary hires.

It should be easy to hire temp and flexible staff near your business. As long as there are people in your area looking for work, even if it’s only temporary, and they know about the platform your company is using, then they’ll see your job postings.

Does my restaurant need to pay taxes for temp staff?

The answer to this question depends on whether the staff is employed through an agency. In which case, the agency is the “employer of record.” If that’s the case, then the agency is responsible for taxing, issuing a W-2 form to every temp worker, and paying the employer's share of FICA taxes (Social Security and Medicare) and FUTA (federal unemployment tax).

At present, shiftNOW does not act as an “employer of record” or agency for temp staff. 

If your company hires temp workers directly, then the relevant amount of tax needs to be put aside, and every temp worker needs to be issued a W-2 when it’s tax time. 

The other option is that temp workers are independent freelancers or contractors and, therefore, won’t need W-2’s. Instead, you’ll need to issue the relevant IRS 1099 form when it’s tax season, and they’ll be responsible for their own taxes. 

One of the best ways to do this is by having clear and simple standard operating procedures (SOPs). Make it easy for permanent staff to train the temp ones in under an hour or less. This way, the first day/night the temp staff does is a learning curve, and future shifts are as easy for them to deliver high-quality work just like your full-time staff members.

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