Permanent Staffing Vs. Contractual Staffing: What's The Difference?
Permanent staffing is when a company hires a permanent workforce to work on a long-term basis. This is typically done when the company has decided that it wants to grow and doesn’t want to risk any potential turnover. On the other hand, contractual staffing is when a company hires individuals on a short-term basis, usually for a specific project or task. This type of staffing is more common in smaller businesses, as it allows for quick and easy replacements. What are the pros and cons of permanent staffing?
Permanent staffing is less expensive than contractual staffing
At the end of the day, the total cost of hiring is ultimately driven by three things: salary, benefits, and taxes. While it’s always nice to have some extra money toting around the office, it’s important to keep in mind that the average salary on a permanent payroll is actually less than the average salary on a contractual payroll. This can make it more difficult for a company to justify the cost of contractual staffing.
Permanent staffing may be more reliable and comfortable
For a project to truly be successful, all stakeholders – whether that’s the team or management – need to be on the same page. This means that everyone’s information is accurate and consistent. If there are problems or inconsistencies in the way that information is being shared, then the project is doomed. With contractual staffing, this can easily happen at the end of the project or at the end of the job.
With permanent staffing, however, communication is part of the culture from the get-go. Employees are usually on the same page and honest about how things are progressing. If there are any issues, someone on the team comes in and addresses them.
Permanent staffing allows for a more accurate and complete understanding of the task at hand.
Contractual staff meets a temporary specialized need
As contractual staff employees are not permanent, they are usually brought in for specific reasons, like to fill in temporary vacancies for employees who are on leave, to handle an influx of business, or to help complete a project. Temporary specialized needs are when the needs of a business are short-term, like handling a busy season or, working on a project that needs specialized technology.
Contractual employees usually work from home and use their own equipment like computers, printers, and other supplies.
Contractual employees are considered self-employed and responsible for their own insurance and other benefits.
Every company has a different way of hiring its employees. While regular employees are hired on a permanent basis and are provided with benefits, contractual employees are temporary employees. They are hired on a contractual basis and are not provided with any benefits (like medical insurance, pension plan, etc.). Like regular employees, they too are paid a salary. As they are not provided any benefits, they are responsible for their own insurance.
Contractual staffing allows for quick and easy replacements
Whether it be a contractor or a permanent employee, each has its own set of issues that can become a point of friction. Some of these issues can be dealt with by training and understanding the culture, while others are more related to the personalities involved.
With contract staffing, if someone isn’t up to speed on a certain topic or frequently gets into a tiff with other employees, then that person can be easily let go. With permanent staffing, however, the person has to be the right person for the job. With the extra scrutiny and audit that comes with permanent staffing, there’s less room for human error.
There are definitely going to be times when you need to make hard choices.
Making hard choices is a part of hiring for any position. When it comes to hiring permanent versus contractual staff, you want to make sure that the decision is right for your company.
As a hiring manager, it is important to remember that recruiters make the majority of hiring decisions. You must do your due diligence when looking at candidates, but you also want to remember that you make a judgment call based on facts. When you take the time to get to know your team members on a personal level and understand what makes them tick, you can better gauge their suitability for the job.
It’s easy to get bogged down in the numbers when looking at the pros and cons of either permanent or contractual staffing. The best way to approach the decision is to take a step back and look at the big picture. In order to make the best decision for your company, you have to take a look at the big picture and decide what type of staffing is right for your company. What type of hiring best works for your company culture, mission, and goals?
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Dzaro Solutions is a recruitment agency that specializes in placing the most talented programmers in the IT sector. The company offers a wide range of recruitment services for both companies and employees, including IT staffing, recruitment via the Internet, and outsourcing. In a world where technology changes every day, it is important to find a company that offers the best IT recruitment services. One of the ways that Dzaro Solutions helps companies is by providing them with the right candidate for any position, without any hassle or delays. If you are looking for a new job and are tired of sending out your resume and hearing nothing back, Dzaro Solutions has the solution.