It’s often said that the hardest part of running a business is finding the right staff. Staff who are reliable, competent and committed don’t come around every day, so making the right decisions with regards to hiring is crucial.
So, when your business faces a challenge or stepping-stone which you’ve deigned to solve by bringing aboard a new recruit, you have a couple of options. Namely, whether to hire someone on a temporary basis – to work for a little while until said challenge has been overcome – or, to hire a permanent staff member, with a view to a long-term career within.
First, let’s break down what each actually looks like:
A temporary member of staff will:
- Be hired for a fixed amount of time, which might range from 4 weeks to 12 months (as an example);
- Work on either a contract (whether one-time or rolling) or freelance basis;
- Fix a short-term need within your business;
A permanent employee will:
- Be hired on a full or part-time basis, but on a permanent contract;
- Require all associated company benefits and perks;
- Be brought on board with a view to a long-term path of development within your business.
Instead of the usual ‘pros and cons’, we’re going to talk about the amazing benefits either of these options provide, and guide you to answer the question: which is the best option for my business right now?
If you have a problem to be solved:
Temp vs Perm: A temp solves the problem here and now, with no requirement for future commitment
When your business faces an issue, challenge or period of development which requires certain skills – skills which won’t always be needed – hiring a temp or contractor can work beautifully. This might apply to managing seasonal uplifts in business, or economic challenges being faced; by hiring a temporary employee you’re able to solve the immediate problem, whilst both parties understand that when the term comes to an end, you’ll simply part ways as friends.
Temp vs Perm: A perm solves the ‘now’ problem – then looks for another
Hiring someone on a permanent basis now will ensure that your current needs are met, but also means that you’ve found someone who has the ability to look toward solving other problems, making other improvements, and committing to driving the business forward, period. You hired this person for a reason – there’s no reason that their skills won’t be useful across the business, whether in other roles or in developing their own.
If budget is a factor:
Temp vs Perm: Temps are cost effective with regards to sick pay, vacation and other benefits
However, potentially more costly on the daily. The hourly rate for a temporary or contract employee is often higher than that of a permanent, to offset the fact that you don’t have to provide them with the usual benefits like paid vacation; but, with that being said, if you have a strong handle on the amount and scope of work you’re going to give them over a set period of time, hiring a temp can save you a lot of money in the long run.
Temp vs Perm: With a perm employee, investments are made into the long-term future of the company
If, as we say, your people are your biggest asset, then that means that every penny invested into them is worth it. The training, benefits and ongoing support which surround hiring a permanent employee may on the face of it seem more costly, but that person is now a part of your business – it’s an internal investment. Work hard on your employee engagement strategy, provide them with a healthy, enjoyable and developmental place to work, and watch as they provide ongoing value to your business, hopefully over a number of years!
If company growth plays a part:
Temp vs Perm: Temps always have the option to go perm
You’ve hired someone on a temporary basis; turns out, they fit your business to a tee, get on well with the team and perform their job to an amazing level.
What’s stopping you from offering them a permanent job?
The beauty of hiring a temporary member of staff is that the door is always open to them becoming an asset and joining your business on a permanent basis. If you’re trying to grow and you happen across the right person, create that opportunity for them to have a legitimate career path within.
Temp vs Perm: You’ve found your newest perm employee – now work hard to keep them!
When you hire a permanent employee, it’s because you’ve found a match – not just in terms of the skills you need, but from a cultural and personality perspective, too. It follows then that, when hoping to grow your team long-term, hiring perm really solidifies that notion; employers should make what can sometimes be a lengthy recruitment process worth it and look forward to building a long lasting relationship with this individual.
The truth is, the benefits of each option are innumerable and far-reaching – it really comes down to what your business needs right now. For an impartial conversation about what that might be, and to take advantage of our many years of consulting experience within HR and staffing, get in touch with the Next Level Group team today.