Temp, Perm, or Contract? Who You Should Hire, and When

There are important differences between temp, perm, and contract workers that go beyond hours alone, and knowing these subtleties can be a valuable asset.

Once you know the right kind of role type for a position, you can work it into your social media recruitment strategy, and make sure you create an appropriate job advert to appeal to the right kinds of candidates effectively. Have a read through our Ultimate Hiring Guide for more insights into hiring strategy, and how these elements all fit together.

Temporary Roles

These roles tend to cover jobs that are only available for a short term, or on a temporary ongoing basis when a company needs more hands on deck. A warehouse that hires extra packers during a busy month is just one example.

Advantages

If you or your client need staff fast, then temp workers will be the easiest and most effective option. You can normally get temporary workers on board more quickly than permanent or contract staff, giving much needed support to your existing team.From a recruitment point of view, these are generally the easiest kinds of workers to find too – most temp workers are looking for stop gap and flexible work, so aren’t normally too fussy about the exact nature of the work, or its duration. What’s more, well performing temp workers might want to go permanent if the opportunities are available.

Disadvantages

The nature of temp work means there isn’t much time to vet candidates. This could lead to the occaisonal unreliable applicant slipping through, so it’s always worth being as clear in the brief and job description as possible.Knowing what to look out for at the CV stage when it comes to problem candidates can also limit any potential issues.

Permanent Roles

Permanent roles make up the bulk of the workforce for any company, and are also arguably the hardest to hire for as a result. The key roles for most businesses, whether at senior or junior level, are usually permanent.

Advantages

One of the main advantages of permanent staff is the fact that they’ll develop a deep understanding of the company over time. This forms the basis of a stable workforce, as well as a strong company culture. Permanent staff are also always on hand to work on projects, which means directors know what resources they have available for long term planning.A reliable workforce is built around permanent employees. Having a solid team that understand each other’s working processes can create a streamlined and efficient workforce. It also means there’s going to be someone available to pick up the slack when others are off sick or unavailable.

Disadvantages

Investing in a permanent member of staff isn’t cheap, and it can take time to find the right person when hiring. Ending up with the wrong candidate can be costly as a result, and it can also be difficult to remove problem employees from the roster once they’re full time.That said, if the time is taken to identify essential applicant qualities at the start of the recruitment process, and make sure these are clearly highlighted every step of the way (from advert to interview), then risk can be minimised.

Contract Roles

Contract roles are almost a mixture of temporary and permanent roles – they have the flexibility of temporary workers, more often than not with the specialized skill set you would expect from more experienced permanent staff. This makes them a good choice for large scale projects that need additional highly skilled workers to help out. Contractors are often used to plug skill gaps while companies search for longer term solutions as well.

Advantages

Contract workers tend to charge per hour, which means employers have a lot of flexibility. Getting contractors on board for a few months or a few days is equally viable. Additionally, while contractors might have quite high hourly rates, they often work out to be very cost effective.This is due to the fact they are highly skilled, so don’t require any in house training. If they do, it’s normally only small scale. Being freelance also means employers don’t need to worry about taxes and other benefits for contractors, as these are reflected in the hourly rates. As they’re coming in from the outside, contract workers can also offer fresh perspectives on problem solving.

Disadvantages

As skilled and valuable as a contractor can be, they’re never going to be quite as invested in a company’s success as permanent staff are. They tend to move around and work for different organisations on a regular basis. This means that while they can be extremely productive and focused, they may not be that interested in the company culture.Another potential downside to using contractors is that they are often used to a much more fluid schedule. They may not work, or want to work, standard office hours, and that can require any company that hires them to adopt a more flexible working approach.

Now you know what type of candidates to look for, make sure to register with us, set up a job post, and find your star applicant!