Pros and Cons of Contract and Permanent Hires
When it comes to recruitment, companies often grapple with the choice between hiring permanent or contract employees. Both options come with distinct advantages and drawbacks, and making the right choice ultimately hinges on your specific business needs. At Involved, a global recruitment consultancy, we understand the complexities of recruitment. Here, we have compiled a comprehensive list of seven common business needs and our opinion on whether contract or permanent recruitment is the best option for each situation.
By customising each stage of the recruitment process—job descriptions, sourcing channels, screening criteria, interview methods, assessments, employer branding, candidate experience, and onboarding—you can ensure the process aligns with your organisation's specific needs. This tailored approach enables you to attract and select the best candidates for the job, regardless of the position's length, increasing the likelihood of long-term success and satisfaction.
1. Accessing Highly Skilled Staff
The candidate pool for contract recruitment often features professionals with impressive resumes and rare skill sets. Contract professionals are confident in their exceptional skills and extensive experience, often specialising in specific project types, which amplifies their expertise and depth of knowledge.
Conversely, permanent employees are more likely to understand the company’s existing processes and values. Employers can also upskill permanent workers with the precise skills they need, although this can take significant time.
The verdict: Contract
2. Prioritising Work Culture
Work culture significantly impacts productivity and overall success. While contract hires can integrate with teams, their transient nature means they are unlikely to contribute substantially to long-term company culture.
The verdict: Permanent
3. Speeding Up the Hiring Process
Permanent recruitment is often a lengthy process, though technology such as video conferencing helps speed things up. An effective screening process can also reduce recruitment time. However, contract hires can be in place and benefit your business within 48 hours, a timeline permanent hiring cannot match.
The verdict: Contract, especially if the role is urgent
4. Investing in Your Future
Contract recruitment helps achieve specific goals or projects, but the skills and experience gained leave with the contract hire when their term ends.
The verdict: Permanent
5. Hitting the Ground Running
The high skill levels of contract professionals make them ideal candidates to hit the ground running. They thrive in environments where projects last six months or less, making them effective immediately with minimal onboarding.
The verdict: Contract
6. Making Unpopular Decisions
Contract hires need to build relationships with team members, even for short terms, but they are not there for long-term relationships. This makes them ideal for tasks like change management or restructuring, where external input ensures decisions are not unduly influenced by office politics.
The verdict: Contract
7. Minimising Costs
The cost dynamics of contract versus permanent hires are complex. Contract hires command higher day rates due to employment uncertainty and skill scarcity. However, they may save money by allowing a company to scale up or down easily. The real cost of a permanent employee includes taxes, insurance, pension contributions, and vacation days.
The verdict: A tie
When it comes to recruitment, both contract and permanent hires have their pros and cons. Permanent recruitment may suit those seeking candidates who can fully integrate into company culture and make long-term contributions. In contrast, contract recruitment is better for specific, shorter-term projects requiring specialist skills. By understanding your specific business needs and tailoring your recruitment strategy accordingly, you can ensure the best strategic outcomes.
At Involved, we pride ourselves on finding top talent for even the toughest recruitment challenges. We use innovative and tailored solutions to make sure we find the talent your business needs, whether contract or permanent. We go the extra mile to solve your hiring headaches.