Key Takeaways:
- When deciding between temporary vs. permanent hiring, there are several things to consider, including budgetary restrictions, urgency, training demands, workload and more.
- If you need quick support or want to assess someone’s fit before making a commitment, it might make sense to hire a temporary employee first.
- If you have a role that requires continuity or will likely be tied to long-term operations, there may be bigger advantages to hiring permanent employees.
Timing is one of the biggest factors in the temporary vs. permanent hiring debate. Your team might need an extra set of hands right away, but you may not be sure whether that role has a long-term scope. Or in other cases, the role may already be a central part of your operations, and if you wait too long to fill it searching for the perfect candidate, that can be costly on its own.
In this guide, we take a look at hiring permanent and temporary employees and the major differences between the two.
A Side-By-Side Look at Temporary vs. Permanent Staffing
Employers who compare temporary vs. permanent staffing should start by asking themselves four questions:
- How quickly do we need coverage?
- Is the role we’re filling a temporary need, or do we think it will continue?
- How much training will this role require?
- How much would it cost the company if the hire wasn’t the right fit?
| Factor | Temporary Hiring | Permanent Hiring |
| Speed to fill | Typically faster | Typically slower |
| Flexibility | High | Low |
| Upfront commitment | Limited | High |
| Long-term continuity | Less built-in | High |
| Best fit | Short-term roles | Ongoing core need |
We also recommend that those weighing temporary vs. permanent hiring look at the role itself. If there is long-term operational responsibility built into the role, it may make more sense to take on a permanent hire.
When Temporary Hiring Is the Better Choice
Sometimes it makes more sense to hire a temporary employee rather than commit to a permanent offer. If an employee is out on leave with the intention to come back, if there’s a big project that is creating too much pressure for your small team or if your business needs support right away while management restructures, a temp is a good solution.
One of the best arguments in favor of temporary staffing is flexibility. You can bring in a temporary employee quickly and keep operations moving while your team evaluates the role further. It also wins out in the temporary vs. permanent hiring debate when it comes to trial periods. You may want to see how a person operates in your office before you offer them a permanent position.
If any of the above scenarios sound right for your situation, it may make sense to hire a temporary employee from a staffing partner.
Advantages of Temporary Hiring
- Faster coverage for gaps in staffing.
- More flexibility for a changing workload.
- A chance to evaluate a person in real time.
- Less pressure to make a permanent commitment.
The Main Drawback of Temporary Hiring
One of the main drawbacks of hiring a temporary employee is that it’s more difficult to create continuity, particularly on a long-term project. However, if you can set clear expectations early on and define the role with set review points along the way, you can mend those continuity gaps.
Whitman Associates has temporary staffing services, perfect for companies that need quick coverage and a pool of carefully vetted candidates to choose from.
When Permanent Hiring Is the Better Choice
The advantages of hiring permanent employees often outweigh those of temporary hires when you have a role that’s essential to your long-term operations. It can be helpful to have a familiar face for client relationships or an employee you trust with sensitive internal knowledge. If the role has a steep learning curve, it may make more sense to invest the time and energy into training a single person rather than rely on several temporary solutions over time.
In the temporary vs. permanent hiring debate, the latter typically wins based on the need for continuity.
Advantages of Hiring Permanent Employees
- Better retention.
- Higher ROI on training.
- Greater loyalty to the business.
- Time to absorb and integrate with company culture.
The Main Drawback of Permanent Hiring
Permanent hiring often takes longer. There’s also a much bigger commitment. The cost of a bad hire can be expensive as well.
The best way to make sure you hire a top-tier employee is by being diligent and thorough with your job description, reference checking and in depth interview process.
If you’re ultimately unsure about hiring a permanent employee, the temp-to-perm route might be the right option. Whitman Associates offers permanent staffing services for employers who already know they want long-term support.
Converting a Temporary Employee Into a Permanent Hire
For many employers looking at temporary vs. permanent hiring, the fact is that it doesn’t have to be one or the other. It’s a staged process. You may want to hire a temporary employee right off the bat. If they’re a strong fit, they can be converted into a permanent employee.
When deciding between a contract vs. direct hire, we often recommend using a temporary period if possible to assess whether your temporary hire is reliable, communicates well and learns quickly.
Before you convert a temp, you can ask yourself a few questions:
- Have they been consistent?
- Are they adapting to your systems without constant oversight or follow-up?
- Does management trust their judgment?
- Are they in line with the cultural aspect of your company?
- Have they fulfilled the obligations of your well-defined role?
Final Thoughts
There are no one-size-fits-all answers to temporary vs. permanent hiring. Even if you decide to hire a temporary employee first, you can still hire them on as a permanent employee down the line.
If you need help evaluating your role and picking the right staffing solution, get in touch with our team at Whitman Associates or fill out a Staffing Request Form.
