Permanent Staffing Vs Contract Staffing: Making the Right Hiring Decision

What is Permanent Staffing?

Permanent staffing services refer to the process of hiring employees for long-term positions within an organization. When a company requires employees to work for an indefinite period, rather than on a temporary or contract basis, they often seek the assistance of permanent staffing services to identify and recruit suitable candidates.

What is Contract staffing?

The primary key phrase suggests that the term “temporary staffing” refers to the hiring of employees on a contractual or short-term basis to meet specific requirements, fill temporary vacancies, or manage seasonal fluctuations in demand.

Read more: (Difference Between Permanent, Contract, and Temporary Staffing Services)

Advantages of Permanent staffing:


If you’re ready to commit to a team member, hiring on a permanent basis is the way to go. Over the long term, employees can build knowledge of the business and gain insight into the company’s history and its plans for the future, which can be a valuable asset to your organization. With time, these people can eventually advance through their department’s hierarchy, take on future leadership positions and form a key part of business growth.

Higher return on training investment

Number two on our list goes hand in hand with our first advantage, longevity. Because permanent hires stick around longer than temp workers, any and all the training and upskilling investment you put into your new recruits will stay at your organization and provide a much higher return for your company.

A higher calibre of candidate selection

Hiring permanently typically means you’ll have access to a higher calibre of candidate selection for the open role. With unemployment being so low and the demand for talent through the roof, the most qualified candidates are already working and have high bargaining power. In order to entice high-quality talent to make a job change, they need to know there is job security with the move.

Is permanent staffing right for my business?

The best way to determine if permanent staffing is the best approach to your hiring needs is to look at the data. At TalentPro, staffing experts will sit down with you to assess your talent needs.

Contract Staffing:

Contract staffing refers to hiring workers for a fixed duration or for the completion of specific projects. These workers are directly employed by the company but on a temporary basis. Contract staffing is suitable for companies that have well-defined projects with clear timelines and deliverables. It allows the company to access specialized skills or expertise without committing to permanent employment. Contract staffing is often used for technical or complex projects that require a specific set of skills that may not be available within the existing workforce.

Contract staffing agencies offer several advantages to businesses:

Speed of hiring:

Contract staffing agencies maintain a pool of readily available workers, allowing them to quickly fill staffing requirements for client companies. This is especially beneficial for businesses seeking to onboard staff rapidly, such as startups.

Cost savings:

When businesses hire independent contractors directly, they may lack insights into prevailing market rates and face administrative complexities in managing invoices and compliance. Contract staffing agencies have a comprehensive understanding of labour market prices and already possess compliant invoicing and payment systems, leading to cost savings and streamlined processes.

Multiple location hiring:

Companies may be well-versed in their local labour market but could struggle with hiring employees in different locations, especially overseas. Contract staffing firms typically operate across broader areas, be it national or international, enabling them to handle hiring needs for large multi-location corporations efficiently.

Reduce the risk of employee misclassification:

Misclassifying employees as contractors can result in legal and financial liabilities, including unpaid taxes and penalties. Contract staffing agencies directly employ workers, ensuring proper classification and adherence to tax and social contribution requirements, mitigating the risk of misclassification. By leveraging the services of contract staffing agencies, businesses can optimize their hiring processes, ensure compliance, and focus on their core operations without the burden of extensive staffing and administrative tasks.

Making the Choice: Permanent Staffing or Contract Staffing?

Choosing between permanent staffing and contract staffing depends on what your company requires at a given time:

  • If your organization typically when they are looking to fill long-term positions within their workforce., permanent staffing might be more suitable.
  • On the other hand, if your company has well-defined projects with specific deliverables and requires specialized skills for a fixed duration, contract staffing could be the better option.

It’s also essential to consider the legal and regulatory aspects associated with each staffing model and ensure compliance with labour laws and regulations in your state.

Ultimately, many companies use a combination of both permanent staffing and contract staffing, along with their permanent workforce, to meet their dynamic business needs effectively. Assessing your company’s requirements, cost considerations, and long-term plans will help determine the most appropriate staffing strategy for your organization. Consulting with HR experts or staffing specialists can also provide valuable insights into making the right decision.

Read more: (How to Choose the Right Staffing Service for Your Business)

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