What exactly is the difference between hiring temporary and permanent employees? For this month’s blog, we will describe these two types of job placements along with the pros and cons of each. Temporary employment is also referred to as freelance or contract work, and is often overlooked by job applicants looking for job stability and structure. Permanent employment can be in the form of full-time or part-time and offer more benefits, but less flexibility. Let’s take a moment to break down the two.
Temporary Employment Pros:
- Temporary candidates can provide special skills for your company’s short-term needs.
- A good relationship can be developed with the candidate for future staffing opportunities.
- A company can test out the candidate’s potential to perform various roles and responsibilities before making a long-term commitment.
- It is usually more cost effective to hire a temp from a financial perspective once you take into consideration benefits such as a 401K and PTO.
Temporary Employment Cons:
- Training is required for any temporary employee which can be time consuming and costly.
- There will be a set end date for the employment period which may fall during a busy time when extra assistance is needed.
- A temporary employee may leave a job for a full-time position or higher paid opportunity.
- Temporary employees may also work for other employers, so their time and energy may not be solely dedicated to your projects.
- The hourly pay rate for temporary hires is typically more expensive because temps do not receive health benefits, vacation time, sick leave or paid holidays.
Permanent Employment Pros:
- A permanent, full-time position offers more financial security and job stability, reducing stress levels for candidates and possibly enhancing their performance.
- Permanent employees have more motivation to perform at their best to advance their career within the company.
- Permanent employees will not have the stress of finding another temporary assignment as soon as one finishes.
- Permanent employees can develop long-term friendships with colleagues in a team-oriented environment, contributing to the success of the company.
Permanent Employment Cons:
- Permanent employees require additional costs in the form of benefits, training, resources, office space, and others.
- Permanent employees may feel that their work is redundant and look for a change.
- The hiring and firing process is more extensive for a permanent employee, leading to additional paperwork and costs.
- If the job does not provide enough work to keep permanent employees busy and it leads to reduced working hours, it will be hard to retain employees in need of full-time work.
- Recruiting efforts are more extensive, costly and time consuming when looking for permanent employees.
Permanent employment remains the more predominant placement type for candidates looking for stability and benefits. However, temporary employment is becoming more popular and acceptable these days as it appeals to job seeking individuals looking for a flexible work schedule and more autonomy. Temporary positions typically provide more flexibility for both employers and candidates.
In the end, it all boils down to the company’s needs, budget, and the type of candidates they are seeking. The Centrics Group is a proven IT staffing company that will find the right candidate that fits the need of the client, whether it be temporary or permanent. Contact one of our skilled recruiters today!