While many of us may be beginning to think about a personal life free of many of the health and safety restrictions imposed due to COVID-19, the economic consequences for businesses look set to live on for quite some time.
As these companies look to balance the risk between conserving resources and pursuing regrowth, they will need to choose the right staffing solution to support their strategy. Providing a blend of permanent and contract recruitment services throughout the East Coast of Australia, we are well placed to provide insight and analysis into the benefits and challenges of these different staffing solutions.
How to Choose the Right Recruitment Solution for your Business
1. Benefits of Permanent Recruitment
Retain and nurture talent: Permanent roles naturally lend themselves to longer tenures, on average, than contract roles, allowing you to reap the rewards of gradually improving skills over time.
Attractive in a difficult market: One of the biggest impacts of COVID-19 has been the uncertainty it has created in the minds of individuals. This uncertainty has led to significant risk-aversion as employees seek out stability in their working lives. The draw of a permanent role allows businesses to reach a very wide cross-section of the market and perhaps even bring career contractors in-house.
2. Challenges of Permanent Recruitment
Time-consuming recruitment processes: When making a permanent hire, it’s not just about whether the person is going to be able to complete that near-term, overdue project as may be the case with a contractor; there are myriad points to consider, making the need for a robust recruitment process absolutely necessary. That robustness comes at a cost, with advertising, screening and interviewing activities eating into the time you had earmarked for day-to-day business activities, taking your focus away from where you want it.
Inflexible obligation: Many organisations are feeling the pinch, with decreased demand for products and services. Regardless of this, a permanent employee will need to be paid according to their contract, and catered for in several other ways including insurance, super, etc. We have seen the use of wage subsidies and furloughing to reduce some of the burden on employers, but the fact that remains that a permanent member of staff represents a more lasting and far-reaching obligation.
3. Benefits of Contract Recruitment
Comfortable with adaptation: Contractors choose to have careers that are subject to continual change and transition. During periods where your organisation is going through its own state of flux, adding a skilled and objective employee who is comfortable with shifting ground can provide invaluable insights, as well as a resource that can be relied upon to not let any anxieties over uncertainty affect performance.
Visible cost: It’s very often the case that a business will analyse the scope of a project and find that the skills required to complete it are highly specialist, carrying too high an ongoing cost to justify a permanent headcount role. Through a contract staffing solution, businesses can define a fixed length of engagement and cost, fitting this into any overarching budgets and accessing the skills they need without any extra costs.
4. Challenges of Contract Recruitment
Temporary knowledge: At the end of the project, the contractor leaves, and though they may have imparted some wisdom, their insights go with them. This knowledge-transfer element is often overlooked when contractors are engaged, but it should be one of the central considerations at the beginning of a project to ensure this process takes place.
A superficial understanding of your business: Though they may possess highly specialised abilities, these have been honed and developed outside of your business. With a contract staffing solution, there may be issues where an intricate knowledge of your internal situation is required to achieve the specific result you are looking for from a project.
Weighing the benefits and challenges of permanent versus contract staffing is something that businesses must analyse thoroughly against the specifics of their recruitment requirements. For advice on which solution you should utilise for your next recruitment drive, reach out to our specialist team today.Contact Us