Temporary vs Permanent Hiring Strategy: What Works Best?
Employers face the challenging decision of selecting between temporary and permanent employment. Both have benefits and drawbacks. Understanding the differences between temporary and permanent hiring can make it easier to select.
Your organisation's work culture depends heavily on how you decide to hire new employees. The job type selection requires careful consideration. Here, we discuss the positive and negative effects of temporary or permanent employment. So, it helps you determine which employment option suits your requirements.
What Is Temporary Employment?
When employers use temporary workers whose work period has a specified expiration date, it constitutes temporary employment. The main function of temporary work is to handle short-term situations. These situations include seasonal needs or protecting the company from loss due to staff absences, such as maternity leave or sickness leave.
Also, when the company needs additional support during busy work periods. Workers who engage in temporary employment come through direct contracts or recruitment agencies. They work for a specific contracted period. Temporary work enables employers to observe employees during their trial phase before deciding on permanent recruitment.
What Is Permanent Employment?
When workers are employed to work for the company full-time with no expiration date are referred to as permanent employees. Permanent jobs have many benefits, like health insurance, paid holidays, pensions, and chances for career advancement etc. Permanent employees usually have more employment stability.
Permanent staff members are expected to remain with the organization for a long time, unlike temporary workers. Their positions are created to give stability and continuous value to the organisation. They provide long-term growth and success to their organisation.
Employer Costs and Challenges in Temporary and Permanent Hiring
Employers experience different forms of costs associated with both temporary and permanent hiring. Recruiting temporary staff costs less initially. It is because employers do not give standard benefits to them, like pensions or holiday entitlement, etc.
Additionally, there exist many hidden challenges too. The work environment becomes less stable when employees lack commitment. So you need to keep training new staff members, too.
When employing permanent staff members, organizations need to invest more. These investments include annual salary, employee benefits like sick pay and training, etc. Financial returns emerge because permanent employees are more likely to support organisational growth through their performance outcomes.
The selection process varies between permanent and temporary staff. The hiring agencies will also help to select the best candidate for the position. A recruitment strategy requires the company's needs, time investment, and desired kind of employee and employer relationship.
Pros and Cons of Temporary Employees
There are many pros and cons of temporary employment, some of them are:
Pros:
Flexibility: This is best for those who want to explore various roles or want to gain diverse skills.
Easy to find: Temporary jobs are found easily with the help of a recruitment agency.
Work-life balance: Many temporary workers make their schedules to work or take breaks from their work.
Cons:
Limited benefits: Temporary workers do not get the same benefits as permanent workers, such as sick pay, pension, vacations, etc.
Uncertainty: They have no financial security and have a predetermined end date.
Career progression: Many temporary positions do not offer clear career path opportunities.
These are some advantages and disadvantages of temporary employment. Now you will make decisions according to what you choose.
Pros and Cons of Permanent Employment
There are many pros and cons of permanent employment, some of them are:
Pros:
Job security: The permanent workers get financial stability.
Career advancement: They stick with one company for the long term, which gives them great career growth opportunities
Benefits: They have major benefits, such as sick pay, pension, vacations, etc.
Team culture: Permanent workers strengthen their relations with colleagues every day.
Cons:
Less flexibility: They were not able to explore more skills.
Long-term commitment: They will stick with one company and will not be able to switch jobs.
These are some advantages and disadvantages of permanent employment. Now you will make decisions according to what you choose.
Temporary Employment | Permanent Employment |
Contracts are Short-term, with a predetermined end date | No, end date contract |
Low job security | High job security |
They have Limited benefits | They have lots of benefits |
They work with Short-term commitment | They work with a Long-term commitment |
Offers high flexibility | No flexibility offered |
Initially, lower costs associated | Higher costs are associated with benefits |
Finding Best Fit
The flexibility of temporary workers matches well with short-term projects. They are also best for seasons when business demands are high. Special occasions, new product launches or busy times of the year demand temporary staff too. They reduce the workload of the regular workforce.
The long-term workforce needs permanent workers to grow. Because such employees provide stability to organizations, a business that seeks employees over long periods should choose permanent employees. They demonstrate greater dedication and commitment.
Temporary jobs help to explore different roles
The main benefit of working temporarily is gaining experience across multiple professions within various business fields. This employment option provides an excellent solution for individuals who need to explore their professional choices.
Working in temporary positions enables you to meet fresh colleagues each day. You will also encounter various work environments and learn new skills. You will get experience serving customers, and then the next time, you will focus on marketing tasks.
Finding your preferred work type becomes possible through temporary roles, which also allow you to build diverse expertise. Several people utilise temporary employment positions to establish their preferred permanent career options.
Final thoughts
When choosing temporary or permanent hiring, you should consider how it matches your recruiting needs. You must think about organizational goals, their cultures, etc. Job seekers and business owners obtain valuable benefits from temporary and permanent workforces. Many temporary staff ultimately gain permanent positions within the company. Do not be fearful when starting temporary employment because sometimes it can transform into long-term permanent work.
FAQs
Do recruitment agencies help with both temporary and permanent hiring?
Yes, many recruitment agencies help find both temporary and permanent hiring.
Can temporary jobs in the UK turn into permanent ones?
Yes, it depends on the company values to turn in permanently.
How do I choose the right recruitment agency?
Search for those agencies that have been working for a long time and have experience in the hiring process.
What are hybrid contracts in hiring?
The combination of temporary and permanent features enables flexibility and turns into permanent elements known as hybrid contracts.
What is the best hiring model for company growth?
A permanent hiring model is best for the future growth of the company because it works consistently.
