The Differences Between Contractor and Permanent Recruitment

The staff make-up of any company is one of the deciding factors of success or failure of the company. It is crucial that the staff profile and expenses are spot on. To achieve this, companies often blend recruiting permanent staff and recruiting contract staff. To properly reap the benefits of both classes of recruitment however, it is important to understand what each one entails.

Contractor vs. permanent recruitment

What is contract recruitment?

Contract recruitment focuses on bringing in workers strictly for a short term assignment. This sort of hiring generally reduces the liability of an organisation as the organisation doesn’t have to offer the contract staff all the full benefits due to a full time employee. Again, since these roles are for a short time period, they are often outsourced on a vendor payroll. This means the contract staff will transition seamlessly at the end of the contract without any administrative burden to the employers. This type of recruitment must not be confused with zero hour contracts.

What is permanent recruitment?

Permanent recruitment involves bringing in full time employees that are expected to work and grow with the company. These employees are fully on the payroll of the company and are liable to all the benefits the company is expected to provide by law including tax relief, sick pay, pension entitlements and so on.

The different types of contract have specific challenges. This makes it imperative for businesses seeking the best blended staff base to work with recruitment firms that understand both; and have a strong talent pool.

Why is this important?

Firstly, the legal requirements around each type of recruitment vary extensively and in many cases businesses struggle with understanding how to best structure these contracts, especially when there are several individuals coming in on different contracts. Lumping things together paves the way for errors that could ultimately prove costly for the business.

Secondly, recruiting a permanent or contract staff goes beyond checking out the qualifications and experience of the individual to be recruited. For example, contract staff are often driven by different aspirations than permanent staff. They may value flexibility over employment stability. They may be used to more work from home time. They may cost more, but are paid until the contract is done and then no more. If you operate in the Telecoms space, specialist telecoms contractor recruitment recruitment experts like Wenham Carter Consulting know exactly what to look out for to make sure your future staff has more than the experience required to cope in a role; they also have the right attitudes and motivations to contribute positively on a day to day basis. Use a recruitment company that understands your industry, contract and permanent recruitment.

Thirdly, outsourcing the management of recruitment is a great way to free up resources and valuable time while getting in quality workers in all spheres of operation. Business is moving towards outsourcing in many functions, so that each business can concentrate on its core activities. If you think about it this trend makes a lot of sense.


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