The staffing solutions industry primarily offers two services to business organisations; permanent staffing and contract staffing. A better understanding of these staffing services helps HR managers, business leaders and others concerned to make productive staffing decisions. In this blog, find out what permanent and contract staffing means, what are the differences between them, the advantages companies can enjoy with each of the offerings and much more.

Permanent Staffing vs. Contract Staffing

Let’s begin by understanding the definite definitions of different types of staffing.

Permanent Staffing

Permanent staffing as the name suggests involves services by a staffing company which helps companies to hire employees on a permanent or full-time basis. Every established company consist of a team of employees who are hired for long-term positions to manage different activities related to operations, marketing, sales, HR, finance etc. The permanent employees at all levels help companies to perform to their maximum potential.

Permanent Staffing: Features

Permanent staffing as the name suggests involves services by a staffing company which helps companies to hire employees on a permanent or full-time basis. Every established company consist of a team of employees who are hired for long-term positions to manage different activities related to operations, marketing, sales, HR, finance etc. The permanent employees at all levels help companies to perform to their maximum potential.

• Permanent staff recruited by staffing services are enrolled on company payroll.
• Permanent employees, unlike contract employees, do not have an end date of employment.
• A permanent employee enjoys all the benefits as per the company policy as well as the employment laws laid down by the government.
• High-calibre full-time employees steer the organization forward while the company enjoys better ROI.
• Permanent hiring helps companies to build a workforce for the present and the future.

Permanent Staffing: Benefits

• Long-term Strategy- Permanent staffing is a beneficial long-term strategy for companies as nurturing and training employees initially can boost productivity. As a result, when the employee gains experience, it adds immense value to the organization.
• Stability – Businesses gain confidence by investing in permanent staffing as it promises stability, excellence and performance.
• Reduced Hiring Cost - Companies can save a lot of money, effort and time by investing in permanent employees and eliminating frequent hiring costs over time.

Whether you are a large business organisations or a startup, you always need to deliver on client and customer expectation. For example, any business services company would always need managers, executives, and leadership to run the organization without hiccups. Thus, temporary workers cannot help achieve this objective. A stable group of permanent employees is a must for business growth and success.

Contract Staffing

Contract staffing means a staffing company hires the best employees for a business organization on a contract basis. These employees are hired for their specific skill sets for a specified duration to complete projects within the deadline. It allows companies to get the work done without committing to permanent hires.

Contract Staffing: Features

• Contract employees hired are given jobs on off roll and paid salary by the staffing agencies.
• All contract employees after being hired are given an end date.
• Contract employees need to follow the policy laid down by a staffing company and enjoy only the benefits provided by them.
• The terms and conditions related to hiring plus the project-based requirements are shared before sending the offer letter.

Contract Staffing: Benefits

• Flexibility – Companies get much-need hiring flexibility with contract staffing, thus increasing operational efficiency and output.
• Cost Saving – Businesses can save extra expenses that generally pertain to permanent employment with contract staffing.
• Fast Hiring – Sometimes, certain projects would require scaling the hiring process. Contract staffing provides fast hiring, thus making the process productive.

Now the question is what should your business choose; Permanent Staffing or Contract Staffing? Well, it depends. Find out different factors that should be considered before making the staffing service decision.

• Type of Projects

  First, your business should determine the type of projects in kitty. For example, if your organization is a large enterprise with expanding operations and stable growth, permanent hiring would be more apt. However, if you are a startup that needs finance experts to set the accounting department in order, contract hiring will benefit you.

• Duration and Deadline of Projects

  The leadership knows the duration and deadline of projects. After assessing the same, your business can decide if you need permanent employees with a long-term vision or contract employees for a specific duration only.

• Budget

  Budget constraints can also play a significant role in deciding staffing solutions. However, it is essential that project goals should not be compromised just because of budget. Staffing solutions are worth investing in and provide good returns in the long run.

• Skill

  Companies need people with skill sets. Permanent hiring is the way to go. However, companies cannot have people with all the skills at all the time. This is where relying on contract employees with the required skills can make a difference and help finish projects for a business.

• Competition

  In the age of businesses competing at a breakneck pace, companies can gain a competitive edge by opting for right staffing solutions. The availability of the best talent for projects can boost company as well as team morale. It also provides opportunities to learn from the best.

Calibehr is an award-winning staffing agency in Mumbai with more than 15 years of experience in the field. The staffing experts can help your business with permanent and contract staffing requirements across India. For more details, contact us today.