Pros and Cons of Permanent Hiring
Have you ever considered permanent hiring for your business? As the economy goes through a period of massive change – some might go as far as to say “upheaval” –businesses require greater flexibility. Corporations are under immense pressure to be able to continue to grow and perform but be ever more prudent with spending.
Staffing is a huge part of that spend and the age-old debate rears its head again: Do we hire permanent staff or use temporary solutions?
The choice between hiring an independent contractor (temporary) or new permanent employee is an important business decision. To guide you toward the correct decision, we should first consider the pros and cons of a permanent hire.
The Pros of Permanent Hiring
Most labor experts will tell you that the biggest pro of a permanent hire is loyalty. And loyalty can result in better work performance.
That loyalty often translates into a staff member who is willing to take on multiple roles and thereby become even more valuable to the corporation. This can also lead to personal growth – a benefit for the individual.
Permanent employees tend to develop strong interpersonal relationships with colleagues, creating a more congenial workspace and encouraging staff retention.
The Cons of Permanent Hiring
But – of course – there are cons too:
A permanent hire is more costly to the company in terms of benefits such as annual leave, sick leave, medical and dental plans, etc.
With permanent staff, corporations must weather storms and do their best to keep staff on in tough times, hiring consultants or temporary placements gives the corporation some valuable flexibility. In slow business periods, your labor bill is adjusted as the employer sets the hours of the temporary hire. This can lead to huge bottom-line savings in difficult times. Conversely, it is quick to add more temporary labor or hours when the business is in a bull run.
The recruitment process can be a minefield and there is no one-size-fits-all solution; what is right for one business may be wrong for another – even in the same business sector. Corporations would do best to have bespoke recruitment solutions created by industry leaders like the Robert Joseph Group – Finance and Accounting Professional Resources Firm.
For more information on our permanent hiring solutions, please contact us without delay.