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Murray McKintosh News Article

Permanent or Contract, which is best for your business?

Choosing between permanent or contract recruitment may not seem like the hardest decision, but which does your business really need?

Written by:

Jessica Kavanagh

When it comes to recruiting a new member of staff, there are plenty of factors to consider such as whether this will be a permanent or an interim hire. Both options present a variety of benefits and unique advantages to an employer, so choosing which type to pursue depends entirely on unique circumstances.

Permanent Hiring

A permanent placement allows a business to bring someone into their business to become a lasting member of your team. Hiring someone on a permanent basis means adding them to the company payroll and ensuring that they receive all the perks and entitlements available through the company.

Having someone accept a permanent position means that they will help a business grow and supply a long-lasting solution to a vacancy. Securing the best candidates on a permanent basis means that businesses can continuously develop a strong talent pool to ensure that they can keep leading the industry.

Murray McIntosh’s Associate Director, Jessica Kavanagh spoke about the perks of permanent recruitment:

“Recruiting someone on a permanent basis means that a business can truly invest in their talent, the long-term commitment means that there is stronger potential for personal and organisational growth. Alongside this, permanent recruitment reduces the reliance on contractors and therefore helps a business cut down on staff turnover.”

Contract Hiring

 Sometimes permanent recruitment isn’t always necessary and a business just needs someone for a short-term assignment who can transition in and out of a business easily. Hiring on an interim contract basis also means that an employer doesn’t have to worry about the administration side of things such as payroll.

Alongside this, a contract employee is mainly judged on the results and as such, they will be able to remove themselves from office politics to work independently when required. As a short-term solution, hiring someone on a contract can be ideal to fill in the gaps in a business, especially if longevity isn’t an issue. Most contractors already have a wealth of experience within the industry, so they offer a unique perspective on the project they are set to be working on.

Paul Dennett, Associate Director at Murray McIntosh described the benefits of following an interim contract approach.

“Contract recruitment is usually best utilised when an organisation is suffering from a problem that needs addressing urgently. Hiring someone on a contract basis allows the necessary resource to be placed quickly to solve an issue that may require a niche skillset which no one in a business has any experience in.”

Creating a Winning Combination

While contract can seem like an easy way to fill any gaps, it can quickly become costly and less effective if it is used to fill a position better suited for a permanent hire. On the other hand, permanent roles often need filling immediately due to unforeseen circumstances and rushing recruitment can often lead to costly mistakes which can leave a company in a worse way than it was originally.

However, there is a solution, instead of just relying on one form of recruitment, why not allow them to both work in tandem. A proper recruitment service for a permanent role, depending on level, could take up to 12-15 weeks as the right candidate is found, interviewed and then finished their notice period.

While waiting for this candidate to start and in line with the beginning of the recruitment process, a company can hire someone on a contract basis to fill the vacancy during the interim.  

Murray McIntosh’s Managing Director, Adam Cave spoke about how the two different types of recruitment can deliver better results if used in tandem:

“While there is an advantage in being able to use contract recruitment to plug gaps in an organisation’s workflow and staff structures, the permanent process allows businesses to build effective permanent teams and internal, long-term resource.. However, in a lot of recruitment markets, we’ve noticed that the average interim contract length is similar to the amount of time it takes to run a complete permanent recruitment process. With this in mind, we’re trying to educate our clients on the benefits of allowing us to use both forms of recruitment to deliver an overall stronger service.”

Both contract and permanent recruitment have their own unique merits and the two different processes can only be called superior depending on the unique circumstances of the organisation with the vacancy. However, if used properly both methods can work together to solve the complex hiring process while delivering a transparent and planned service that will genuinely help their business grow.

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