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Choosing among Permanent, Contract and Temporary Hiring Process?

Choosing among Permanent, Contract and Temporary Hiring Process?

Saturday March 21, 2020,

5 min Read

Hey! Are you worried about the consistent growth of the organization with adequate human resources?

Are you thinking to opt for the hiring procedures among permanent, contract and temporary ones?

Let us understand every single hiring aspect in detail to let your business grow conveniently.

Organization prefers to have talented employees for exceptional business growth. They want their employees to be responsible, reliable, qualified and well experienced for the betterment of the organization.

Choosing among Permanent, Contract and Temporary Hiring Process?

Image Source: Google

Under the recruitment process, you will come across a variety of terms used by the staffing agencies for describing their services.

Under such circumstances, crystal clear understanding among permanent, contractual and temporary hires must be there for opting the best.

Let us have a detailed discussion among all the hiring categories for making the recruitment process easy and effective:-

1.     Permanent Hire: Permanent employees seem to be more efficient at their jobs being already familiar with the working procedures.

They help grow your business and gain consistent business stability without the requirement of any specialized training.

Pros of hiring permanent employees:

  • The mindset of the permanent employee is completely focused upon the company’s development. They never keep trying for an alternative working position as that of a temporary employee.

  • The permanent employees are always loyal to their employers, and they never leave their employers at the drop of a hat.

  • Every single team member gets benefited from the sound expertise of permanent employees. It helps to improve their performance with proper time management.

Cons of hiring permanent employees:

  • Permanent employees raise the company’s financial budget in the form of benefits, resources, training, office space, accommodation, etc. to name a few.

  • Both the hiring and firing processes are complicated and comparatively more expensive leading to additional costs and paper works.

  • Permanent employees sometimes create hurdles in undertaking regular training. They feel uncomfortable in taking the training sessions by young individuals with an ego factor in their mind.


2.     Contract Hire: Contractual hiring is providing an employment opportunity to the individuals by making them sign and agree to the terms of the contract before starting the work.

An appointment is made for a specified amount of time and automatically ends up upon completion of a project or the assignments.

Contractual employees usually get a sum total amount of their work done. There may be an estimate of salary calculation on the basis of project completion/ accomplished assignments.

Pros of hiring contractual employees:

  • Contractual employees save up on benefits with the freedom to terminate the employment anytime without any hassles after contract completion.

  • The job can even be terminated between the contract period if the work seems unsatisfactory.

  • Employers working with seasonal businesses prefer to hire contractual employees for a limited period. Better work accomplishment is made at least the pay budget.

  • Employers get an advantage in finding skilled talent for the specific short term assignments by reducing costs and added liabilities.

  • There exist the least hiring risks and increased flexibility for hiring well qualified and experienced employees.

Cons of hiring contractual employees:

  • There remain some risks of hiring contractual employees. It may include leaks of sensitive company issues or customer information.

  • The working performance of contractual employees is noticed below average most of the time. It becomes troublesome to hire and fire the employees repeatedly.

  • Employees never feel protected under the employment standards act while hiring contractual employees. They can be fired anytime without any notice or so cause.

3.     Temporary Hire: Temporary workers are hired temporarily without any assurance of getting a permanent employment opportunity.

In most of the cases, the date of termination is mentioned on the employment deed which may subject to extension based on the performance.

Providing temporary employment to the interested individuals works in favor of the organization as they get an opportunity to analyze the individual’s working potentials.

Based on the examined assessment, they are offered to serve as the permanent employee of the organization with a completely different employee protocol.  

Pros of hiring a temporary employee:


  • Employers feel it easy to hire temporary employees for specific tasks or time. The employment agreement procedure is easy permitting the employers to fire them anytime as per the requirements.

  • Hiring a temporary employee permits employers to analyze the skills and capabilities to provide them a long term appointment as permanent employees.

  • Temporary employees can submit their specialized skills for the company’s short term requirements. Work is done effectively with lesser financial costs.

Cons of hiring a temporary employee:

  • Training is required for the temporary employees that can be time-consuming and costlier as well.

  • The set end date may fall during a busy time when extra employee assistance is required.

  • Temporary employees can leave their job anytime for a comparatively highly paid opportunity. It may leave the organization into a problematic situation.

  • The employees may simultaneously work for other employers as well. In such a case, their potential cannot be concentrated completely towards the company’s benefits.


To sum up, all the above-mentioned hiring categories are bounded with specific protocols. Depending upon the situations, a specific hiring phenomenon can be chosen by the employers for maximized organizational benefits.