Permanent Recruitment Vs. Temporary Staffing: Which One is Right for Your Organization?

Permanent Recruitment Vs. Temporary Staffing: Which One is Right for Your Organization?
There might be lots of available candidates in today’s market. Yet, the uncertainty of the economy is high enough that, even though you have a need for additional headcount, you are concerned about the impact to your organization’s bottom line and long-term stability.

Between Permanent Recruitment and Temporary Staffing Solutions, how can you know what’s the best option for your organization? Both alternatives provide spe­cific pros and cons, so making the best decision re­lies on several conside­rations unique to your organization.

Table of Content

What’s the Difference between Permanent Recruitment and Temporary Staffing

Before delving into a comparison of Permanent Recruitment vs Temporary Staffing, let’s clarify what both Permanent Recruitment and Temporary Staffing entail.

To start, both types of staffing suggest that an organization is looking for individuals possessing specific skills tailored to the particular needs within the firm.

A permanent (W2) employee is ultimately employed and paid directly by the hiring firm and does not have a pre-determined end date for their employment.

A temporary (W9) employee is hired and paid by a third party and placed within an organization to perform a job for a set amount of time. While there are no laws or regulations governing temporary employment outside of federal government placements, these roles ideally should not exceed one year. An exception would be where a firm has a specific finite project that will take more than a year and it hires independent contractors specifically to complete the work.

Additionally, some temporary and contract jobs offer the opportunity to become a permanent employee. In these situations, the temporary employee may work for a longer amount of time, such as three to six months, with the option of getting their assignment extended or getting hired permanently.

Advantages and Disadvantages of Permanent Recruitment

Advantages and Disadvantages of Permanent Recruitment

Permanent Recruitment has its advantages and disadvantages so, before you make the leap, make sure it’s the best recruitment strategy for your organization.

How do you find out? We’ve made it easy scroll down for the advantages and disadvantages to hiring perm workers vs temp workers.

Advantages to Permanent Recruitment

1. Reduced Transience

If you’re ready to commit to adding team member, hiring on a permanent basis is the way to go. Permanent employees build institutional expertise and integrate into the firm’s culture, which is valuable to the organization.

Additionally, data suggests that the longer permanent staff are employed with a firm, the more loyal they’ll become. Loyal employees become brand ambassadors and attract other, like-minded colleagues, which will help make future recruiting easier. Over time, permanent recruits can advance within their team and even take on leadership positions so both they and your firm grow together.
2. Higher ROI from Permanent Staffing

This perfectly correlates with the reduction in transience. Because permanent hires typically stick around longer than temp workers, any and all the training and upskilling investment you put into your new recruits will improve their skill sets and their capabilities but also stay with your organization. Investing to create a higher caliber of candidates internally will dramatically reduce your permanent staffing costs over time and give you an edge in a competitive labor market.

3. Temp-to-Perm Recruitment
A temp-to-perm option is perfect if you need to “test drive” a candidate before hiring them permanently. This is as true for the candidate as it is for the hiring firm. As mentioned in earlier however, to attract the best candidates, investments in training and upskilling are key and contracts with clear benchmarks that lead to permanent employment add the job security candidates are looking for.

Disadvantages to Permanent Recruitment

With an understanding of the advantages, firms should also consider the disadvantages of Permanent Recruitment. Fortunately, there are very few.
1. Immediate Budget Impacts
Permanent employees come at a higher immediate cost than temporary recruits. From benefits to base pay and bonuses, permanent employee costs can vary widely and be very costly. Additionally, while the long-term benefits of Permanent Recruitment will bear significant dividends, Permanent Recruitment is costly not just in compensation but also in time and resources leveraged in the Permanent Recruitment process. From ads on job boards to travel expenses for interviews, the initial costs are high but, as discussed, they are worth every penny in the long-term when the candidates are engaged and loyal.
2. Separation Challenges

But what happens when the “perfect” candidate you hired turns out to be a nightmare of an employee? Even though most permanent roles come with a standard 90-day probationary period, that sometimes isn’t enough time to gauge how a candidate fits your culture. Bad employees can cause serious damage to the culture, reputation, assets, and revenue of a firm.

After the first 90 days, it becomes more difficult to terminate employment (even in “at-will” states), as you could be responsible for notice periods and severance pay at best and a federal employment lawsuit or EEOC investigation at worst. If you’re hiring permanent employees, it’s crucial to make the recruitment process thorough to mitigate your chances of a bad hire.

Advantages and Disadvantages of Temporary Staffing

Advantages and Disadvantages of Temporary Staffing
With roughly 3 million temporary and contract employees working with U.S. Temporary Staffing Agencies each week, Temporary Staffing options are plentiful. However, the decision to begin recruiting temporary staff requires careful consideration of both the advantages and disadvantages. Let’s explore the key factors that hiring leaders should weigh:

Advantages to Temporary Staffing

Immediate Availability

Time is of the essence in hiring. Temporary Staffing Agencies provide a shortcut to talent acquisition, sparing you the arduous process of recruitment, resume screening, and interviews. So you can beat your competition to the best talent available.

Flexibility and Cost-Effectiveness

Temporary Staffing offers a cost-efficient solution tailored to your specific needs. Whether you require assistance for a set number of hours or a short-term project, you have the flexibility to hire precisely for the required duration, minimizing unnecessary expenses.

Effective Trial Periods

Hiring on a temporary basis allows for a “test drive” before committing to full-time employment. The Temp-to-Perm approach mitigates the initial risks associated with permanent hires, enabling you to assess a candidate's suitability without the burden of long-term obligations.

Access to Specialized Skillsets

Contrary to common misconceptions, temporary employees are actually a diverse pool of highly skilled professionals. Whether you need expertise for a niche project or one-off specialized tasks, Temporary Staffing Agencies can match you with individuals that are highly proficient in their respective fields.

High Productivity

Research indicates that temporary employees exhibit high levels of productivity, contributing positively to overall organizational efficiency. Embracing Temporary Staffing can lead to increased output and enhanced performance, bolstering your business objectives.

Disadvantages to Temporary Staffing

However, Temporary Staffing also presents challenges. While te­mporary recruits provide flexibility, ove­rdependence­ on them can undermine stability and continuity in your te­am. This hampers long-term strategic planning and your e­fforts to grow your teams’ skills.
1. Productivity Impacts
Speaking of skill sets, temporary workers require time to acclimate to your business processes and culture. Getting them up to speed with necessary training and onboarding can strain internal resources, disrupt workflows, and temporarily hinder the very projects you were seeking to move accelerate.
2. Safety Concerns
The unfamiliarity of temporary employees with your work environment also poses inherent safety risks. Diligent training and supervision are essential to mitigate accidents and ensure compliance with occupational health and safety standards.
3. Challenges in Team Dynamics
Without proper advance engagement and preparation, your teams may be challenged when integrating temporary staff due to potential conflicts or reduced collaboration. Prepare permanent staff for the arrival of the new temporary team members by communicating in advance and foster a culture of inclusivity and teamwork by creating opportunities for them to build rapport outside of the project.
4. Legal Compliance
While each state has different labor laws, adherence to legal regulations governing temporary employment is paramount. Failure to comply with guidelines can expose your business to legal liabilities and litigation risks. If you have questions or concerns, consult your attorney or a reputable Temporary Staffing Agency that places candidates in your state.

Choose VALiNTRY as Your Trusted Permanent Recruitment
Service or Temporary Staffing Agency

Whether you need Permanent Recruitment Solutions or Temporary Staffing Services, it is ultimately to your benefit to not go it alone. Firms like VALiNTRY provide Permanent Recruitment Solutions and Temporary Staffing Services to help your organization streamline your hiring process, reduce talent acquisition costs, and protect your brand.

Put VALiNTRY’s nearly four decades of combined recruiting experience across various industries to work for you. Our veteran recruiters can’t wait to use their extensive expertise to uncover candidates with the skills you need for success.

Contact us today to discover how VALiNTRY can become your preferred Permanent Recruitment Service or your Temporary Staffing Agency!

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