Difference Between Permanent, Contract, and Temporary Staffing Services

August 3, 2021
Difference Between Permanent, Contract, and Temporary Staffing Services


The workplace in the modern business environment has been evolving continuously. Temporary Staffing and contract staffing are among the factors gaining momentum in the contemporary human asset management setting.

The workforce in today’s organizational teams can be classified under three broad categories, namely, permanent, contract, and temporary staff. It is the responsibility of the skilled staffing agency to identify clients’ unique needs and provide the appropriate staffing solutions.

Why is it Essential to Classify Your Workforce Properly?

With rising costs and fluctuations in several aspects of business, entrepreneurs and HR managers of modern businesses need to understand and classify their organizational staff members properly. Creating a flexible and agile workforce is critical for accomplishing business goals and making optimal use of skilled employees.

To achieve your company’s goals by fully utilizing your precious human assets, you must have clarity in defining each job position with a complete and transparent job description. This helps to acquire the right talent for each position while offering the much-required satisfaction to employees. Partnering with an efficient and experienced staffing agency will ensure that your company amasses the right mix of permanent, temporary, and contract staff.

The Fundamentals of Permanent Staffing 

Any modern company has an adequate number of employees on its regular payroll, with a permanent employment agreement. The job description and remuneration details are clearly mentioned in the mutually acceptable agreement, and the employees, known as full-time employees, are offered all the benefits and perks. Permanent positions do not have a defined termination date. Permanent staffing is a long-term investment for a company; it helps build the business from the foundation.

Permanent staffing was considered the preferable category among employers as well as employees. (Read More: Temporary Manpower to Permanent)

Temporary Staffing – the Basics

Temporary staffing solutions are mostly provided by a professional staffing agency or human resource service agency. This type of staffing solution enables business enterprises to employ temporary workers with the required skills and the willingness to serve for a fixed period.

Companies at times look for temporary employees to replace their existing team members who are under leave. Short projects and seasonal work are other factors that necessitate temporary staffing solutions. Temporary workers will have limited perks and benefits compared with permanent employees, while they get most of the privileges, as agreed between them and the company.

The Rising Trend of Contract Staffing in Modern Business Arena

The emerging concept of the gig economy and the modern trend of contract staffing has given rise to the on-call employment system. Employees under this category may offer their service to a company for a contract period. Short-term contracts bind them, or they may work as freelancers. This concept has been gaining popularity among modern business enterprises, in which several short-natured work processes and minor projects prevail.

The terms of employment are unique; the employee may or may not be extended beyond the pre-fixed contract period. Contract staffing mutually benefits the company and the individual in that they are bound for a fixed period. The work is flexible in nature, giving leeway to both of them.

(Read More: What makes TalentPro a market leader in contract staffing?) 

Managing a Mixed Workforce of Permanent, Temporary, and Contract Employees

Regardless of the size or type of the company, modern businesses find themselves in need of different staffing requirements. Managing your company’s workforce may not be an easy task, given the complexities of today’s compliance needs and rising employees’ demands.

It is highly advisable that business owners delegate their human resource management process to reliable and robust staffing agencies capable of providing end-to-end HR Services. Here’s where staffing solution providers such as TalentPro India play an important role


Joining hands with experienced and professional staffing agencies allows companies to gain better visibility into their entire workforce. This enables them to focus more on their key functions while deftly managing their permanent and contingent workforce.

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