Temporary Employee vs. Full-time Employee. Which is Better?

As your business grows, you will need to invest in it. Investing can take many forms – technology, infrastructure, talent. When it comes to bringing on talent, there are many options. Should you supplement your existing staff with a temporary workforce or directly hire a full time employee?

If flexibility is your main concern, temporary or contract staffing is the best answer. If you are looking at a long-term, consistent increase in business, adding a dedicated member to the team is the best option. Ultimately, you need to weigh the pros and cons of each approach and chose the method that works best for you right now.

Temporary / Contract Employee

Flexibility is usually the prime motivator for bringing on temporary and/or contract workers. If demand fluctuates, it may not yet be time to commit additional headcount. There are several other pros – as well as cons – in making the decision to leverage a temporary workforce.

Pros

Cost savings during the recruiting and hiring process, including the impact of making a hiring mistake.
Reduce the cost of health benefits and taxes as well as workers’ compensation insurance, overtime pay, vacation pay, etc.
Access to specialized resources for special, finite projects.

Cons

Talent pool could be limited to local talent, which could make it difficult to find specific, skillsets.
Company’s culture could be impacted as the temporary worker will not have the same benefits or be entitled to the same perks.
The temporary worker could be legally defined as an employee, depending on the length of time and the type of work.

Direct Hire Employee

Direct hire is usually considered the right answer for companies filling top leadership positions. For individual contributor roles, there are several pros and cons that should be weighed in deciding which hiring form to use:

Pros

The benefits and relative security of employment could attract a higher caliber of talent.
Allows organizations to attract talent from out-of-state, especially for professional or technical roles with specific skill requirements.
With employees, both your managerial and legal obligations are clear; there are usually few issues with “joint employer” rules and employee misclassification issues.

Cons

Direct hiring usually requires a greater up-front investment, in terms of time and fees, than adding temporary workers to your core staff.
The risk of making a bad hiring decision is ever-present, and, if made, the entire process starts all over again.
Termination of an employee usually has strict policies wrapped around it, and the entire process can cost a lot.

To be successful, you should partner with a trusted, reputable staffing firm to handle the recruiting, vetting and hiring for whatever type of worker you choose to bring onboard. Snelling can be that value partner. Whatever type of help you need our deep understanding of your business and our powerful recruiting and screen programs and find and deliver the best talent for you!