A Small Business’s Guide to Hiring Seasonal Employees

Quick look: Approximately 75,000 seasonal employees work in the U.S. across various industries, from accounting to retail. These workers help businesses meet increased demand during their peak periods, alleviate workforce burnout, and potentially reduce long-term recruiting costs. Here, explore what you need to know about hiring for seasonal positions, from compliance considerations to incentivizing staff to come back next season, and how a PEO can help you achieve year-round success.  

An uptick in sales at a specialty retail store before the winter holidays. A substantial need for an increased headcount at an accounting firm during tax season. Many businesses have fluctuating workforce needs throughout the year and count on seasonal workers to succeed.

When these companies need more helping hands, they need them now. To help them on that journey, we’re here to explain the ins and outs of seasonal roles and six tips to hire this talent efficiently.

What are seasonal employees?

Seasonal employees are hired temporarily to meet increased demand throughout the year. Busy periods vary depending on the industry but often correlate with holidays, business cycles, or weather conditions.

Seasonal employees are hired for a specific period, which could range from a few weeks to several months. Employers usually do not offer long-term employment or benefits beyond the season they are hired for.

There are approximately 75,000 seasonal employees in the U.S. Industries that commonly require these workers include:

• Retail: Extra staff may be needed for winter holidays, Mother’s Day, Father’s Day, back-to-school season, and more.
• Accounting: Additional certified accountants and tax preparers are often required during tax season.
• Agriculture: Farms often need assistance with planting, harvesting, and more during growing seasons.
• Hospitality and tourism: Resorts, ski lodges, and national parks require additional hands during peak tourist periods.
• Events and entertainment: Festivals, fairs, and concerts all require operational staff.

The advantages of seasonal staffing for employers

A seasonal workforce can benefit businesses in many ways.

First, it allows employers to scale their headcount when needed, without a long-term commitment.

Additionally, when businesses observe and anticipate their busy seasons, they can develop a hiring strategy to effectively pivot and adapt to fluctuations in their personnel needs. Recruiting is much less hectic when you know what to expect in the upcoming months versus when an immediate hiring need arises.

Seasonal workers also help organizations experience:

• Lower levels of burnout: A higher headcount during busy times means employees experience less stress and a more manageable workload.
• Reduced turnover: Happier employees generally lead to a lower resignation rate.
• Consistent customer service levels: Adequate staffing levels mean customers receive reliable and consistent support.
• Fewer lost sales: Those satisfied customers result in more closed sales.
• A positive reputation: When employees and customers are treated well, it strengthens the business’s reputation, both externally and as an employer.
• Potential cost savings: Seasonal staff that enjoy their experience at your company may return during your next busy period, possibly reducing future recruiting expenses.

How to hire seasonal employees: 6 tips for success

While not every industry relies on seasonal workers, they can be crucial to keeping your business running during peak times. However, successfully attracting, hiring, and retaining them is sometimes easier said than done. Here are some factors business leaders should keep in mind as they build their seasonal talent pool:

1. Be cognizant of compliance

There are several laws and regulations employers must navigate when employing seasonal talent:

• The IRS’s definition of “seasonal employee”: Are your staff truly seasonal workers? The IRS defines seasonal employment as an employment period fewer than 12 months that typically occurs at the same time each year.
• Overtime pay regulations: Under the Fair Labor Standards Act (FLSA), most seasonal workers must receive overtime pay (with some exceptions). Notably, some states’ overtime pay requirements exceed the federal amount.
• Minimum wage requirements: Many seasonal employees are covered by FLSA minimum hourly wage requirements. Please note that some states’ minimum wage requirements exceed the FLSA amount.
• Employment authorization: Like regular employees, seasonal staff must be verified using Form I-9.
• Paid time off protocols: Some states and local jurisdictions may require businesses to provide paid time off, including sick leave, to seasonal workers.
• Minor labor regulations: If you’re hiring teenage employees, it’s critical to brush up on the FLSA’s minor labor provisions, which include but are not limited to:
  • 14 is generally the minimum age for employment. Additionally, some higher-risk occupations are prohibited from employing anyone under the age of 18.
  • Boundaries surrounding how many hours employees under the age of 16 may work:
    • Maximum weekly hours: 18 hours during school days, 40 hours during non-school days/breaks
    • Maximum daily hours: Three hours during school days, eight hours during non-school days/breaks
    • Daily schedule: Work must begin after 7 a.m. and end before 7 p.m. (except from June 1 through Labor Day, when work must end before 9 p.m.)
  • Again, please be aware that individual states and localities may have their own laws.

Note: This is not an exhaustive list of hiring laws. Please refer to your regional and industry-specific legal guidelines or consult your legal counsel for detailed and specific information.

2. Plan ahead

The key to seamless seasonal hiring is to start planning a few months ahead of an anticipated business surge. Rushing to fill a vacant role may result in choosing a sub-optimal candidate or a lower-quality onboarding experience.

Preparing can even begin at the end of a peak season, when business leaders may review the current year’s timetable to see if it was successful or if any tweaks can be made for more efficient staffing in the future.

3. Streamline the hiring process

Time is of the essence when recruiting seasonal staff. Some tips to optimize hiring include:

• Hone job descriptions: Straightforward job responsibility, pay, and scheduling details mitigate confusion and help to quickly secure talent. This transparency also fosters trust and motivates employees to return if needed in the future. Using a job description template can speed this step up.
• Share job advertisements far and wide: Casting a wide net can help you reach a larger candidate pool. Consider circulating job advertisements:
  • On online job boards (Indeed, Glassdoor, etc.).
  • On social media (LinkedIn, Facebook, Instagram, etc.)—it may be helpful to understand which platforms align best with your industry; for example, accountants may be most easily reached on LinkedIn, while a teenage retail worker may be scrolling Instagram or TikTok.
  • Internally, so that employees may refer people they know (offering incentives can help motivate your current workers!).
  • At community hiring events and career fairs.
• Consistently communicate: Updating candidates throughout the hiring process makes them feel prioritized and keeps them connected. It’s also beneficial to send a post-interview follow-up email with next steps, even if a decision has yet to be made. Doing so can keep candidates more engaged and likely to sign an offer.

4. Don’t cut corners during onboarding

Many seasonal workers take customer-facing roles, making onboarding critical to business success. Spending time properly onboarding means they’ll learn your company’s brand and best practices, ultimately saving time as they may have fewer questions once they’re on the job.

Employers should also remember to re-onboard returning staff to help them reacquaint themselves with organizational protocols.

5. Be prepared to answer questions

New employees, and even those who are returning for the season, will naturally have questions about your organization. Your company’s human resources (HR) team should be available to answer these inquiries.

Some small businesses partner with a professional employer organization (PEO), like ExtensisHR, which has a readily available customer service team to field employee requests.

6. Aim to retain

Seasonal staffing success looks like when those same valuable people return to your business during its subsequent busy seasons. These employees already understand the company’s products, mission, and customer base and can ultimately reduce recruiting costs.

To achieve this loyalty, employers should:

• Focus on engagement and company culture: Treating short-term staff the same way you treat full-timers makes them feel important and valued and increases their chance of returning. Hosting a goodbye party at the end of the busy season can cultivate a positive culture, too.
• Provide perks: While seasonal staff may not qualify for traditional employee benefits, a monetary bonus for finishing out the season can incentivize them to come back.
• Conduct exit interviews: Asking departing employees about their experience with your business can provide valuable insights into what’s working well and what could be tweaked to improve engagement and retention rates.
• Remain in contact: Staying in touch can keep you top of mind for workers, whether they return during future peak periods or know someone else who could.
• Consider longer-term placements: Could any of your seasonal staff be a fit for current or future permanent positions?

PEOs: dedicated to SMB success, year-round

Running a small- or medium-sized business (SMB) is demanding, even outside of peak seasons. Juggling recruiting, compliance, employee benefits, and more while simultaneously trying to grow the company can be exhausting.

That’s why many SMBs choose to outsource their daily HR workload to a PEO. PEOs help companies manage various aspects of their HR, employee benefits, payroll, risk and compliance, and other employee-related tasks.

A PEO like ExtensisHR offers the following solutions to help you build the workforce you need during busy periods:

• Compliance: We’re here to help guide you through the complex employment and payroll regulations involved with seasonal staffing.
• Recruiting: Our full-cycle recruiting services include everything from job advertisement creation to offer letter consultations—and are included in our PEO solution at no additional charge.
• Customer service: ExtensisHR’s Employee Solution Center saves you time and enhances employee satisfaction by providing prompt, specialized support via phone, live chat, and email. Frequently handled inquiries include:
  • Portal login assistance
  • Employee onboarding
  • Payroll questions
  • Paid time off questions

Engaged, reliable, and loyal seasonal staff drive business success and help your organization remain efficient and capable of meeting fluctuating demand. This ultimately promotes better customer satisfaction and profitability during peak periods and beyond. A PEO supports you at every stage, ensuring your SMB achieves positive outcomes for both temporary and permanent talent.

ExtensisHR is here to help you put your best foot forward, all 12 months of the year. Explore our PEO solution, or contact us to learn more today.