Permanent, Contract or Temp Hires. Which is Better for you?

The proliferation of automation and technology has paved the way for a new era in the field of recruitment and talent acquisition. Human resource is the greatest asset in most companies today. However, this was not the case a few decades ago, where the difference between an average and a great manager was entirely inconsequential.

In the digital age of today, an amalgamation of creativity, cutting-edge technology, and a collaborative effort by a company's employees is critical for not only timely deliverables but also the company's bottom line.

The utilisation of contractual, temporary, and permanent staffing solutions is moving towards a trend that is significantly enlightened. The modern-day paradigm is focused more on the strategic deployment of these resources and how it is working as a critical differentiator in talent management practices. Let us see how.

How Permanent Staffing Is Being Tapped Into To Achieve Extraordinary Results

Permanent staffing solutions are a great way of providing a permanent, high-quality human resource in niche markets. The recruitment or selection process itself is a hallmark of pedigree hiring practices that utilise the three most powerful tools:

Simply put, organisations with a highly motivated and dedicated permanent staff are really well equipped to handle business exigencies, and, therefore, succeed. Being on the permanent payroll of a company has several advantages. You are seen as a permanent, long term strategic resource, and hence, employers are more amenable to promoting you.

Permanent staffers are better positioned to understand client personas and requirements and know how to collaboratively work with colleagues. They also have in-depth knowledge of the product line.

Permanent hires are more likely to buy into the company vision and treat the business as their own. This helps them innovate, brainstorm, and come up with terrific solutions to hasten company production and streamline business operations for more profit.

Google Champions An Innovative Workplace Trend: Interim Or Contract Employment

Known for its employee-friendly policies, Google has now positioned itself as the quintessential role model that companies wish to imitate.

The figures quoted by an internal document that was reviewed by none other than the New York Times are mind-boggling. While the company boasts of 102,000 permanent or full-time employees, it also hires close to 120,000 TVCs or temporary vendors and contract workers. This constitutes nearly 50% of their workforce.

An NPR poll has revealed that contract workers make up nearly 20% of the world labour market which will soon grow to 50% in the US alone.

Many new start-ups are going for temporary and contract workers for the following reasons:

  • Companies are in their nascent stages and driving their funds more towards client acquisition and systems streamlining.

  • It gives companies a chance to 'try out' the employees and decide whether they wish to take them on in a 'full-time' or permanent position.

  • Temporary or contract positions are bountiful, and more and more employers are offering these roles to employees who are coming back into the workforce after a long sabbatical. It's also a great option for those who balk at interviews and are unable to demonstrate their skills.

Benefits of Contract or Temporary Positions

Contract and or temporary hiring offers some key and distinctive advantages:

  1. An Entry Into The Big Companies - With cut-throat competition, companies cannot afford to hire unskilled staff or make recruiting mistakes. Hence, they find it necessary to 'vet' their employees, put them on a probationary period, and then see whether they fit into their corporate culture or not. It is also useful where extra staffing cannot be justified due to lack of funds.

  2. Easier Hiring - With temporary or contract hiring, hiring managers have the power and the funds to make the hiring decisions.

  3. It Can Be Your Next Recruiting Career - It gives a lot of flexibility to recruiters who are on tight recruiting schedules. Many temporary hiring firms also offer benefits like health insurance and paid sick leave.


Companies can utilise their temporary or contract human resource better by creating a promising work environment. You can never 'over-communicate' with your employees. Regular interaction with your temporary and contractual staff ensures that they are happy, valued, and suitably engaged. Creating a suitable compensation and benefits plan also helps.

It is important to give all a platform to address their grievances and opportunities, to be able to better integrate them as your permanent workforce once they have proven themselves.


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