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Hiring Options: Temporary/Contract vs. Direct Hire

Hiring Options: Temporary/Contract vs. Direct Hire

Mar 31, 2017

For most businesses, growth and expansion is a necessary step to sustain success. However, not all companies require the same type of growth. For some companies it may mean acquiring additional property while others may look to offer more products or services. Let's take a closer look at expansion in the form of hiring new employees. In many industries, businesses have the option to either hire an employee on a temporary/contract basis or bring them on as a direct hire. When making a decision on which method to choose, a business should analyze the benefits and costs of each choice. By reading the following post, you will be able to make a more informed decision in choosing the right hiring method for your company.

Temporary/Contract

Benefits
Utilizing temporary workers can lower costs in the recruiting and hiring process, especially when partnering with a staffing agency. In many circumstances, employers don’t offer benefits such as insurance or vacation to their temporary/contract workers. Another positive of short term employment is minimizing the negative impact of a poor hiring decision. Since these employees will only be there for a short period, employers will be able to make choices in termination and replacement much faster and easier.

Costs
The costs of choosing temporary hiring is the limited talent pool that may exist for certain positions. For some type of work, such as engineering or management it is hard to find someone interested in a temporary position. If a business wants the flexibility of a temporary employee for positions like these, they will in all likelihood have to settle for a temporary to direct hire opportunity. The company culture may also face significant issues with temporary or contract employment. With the high level of turnover to be expected, it can be hard to implement and develop a positive work environment.

Direct Hire

Benefits
By choosing to hire directly, an organization is more likely to attract higher quality applicants due to the expected level of job security and amount of benefits offered. Additionally, an employer makes their employee classifications clear from a legal standpoint.

Costs
The major cost of using the direct hire option is the high level of investment that a company will have to put in with interested applicants. From the time an employer begins interviewing candidates through the onboarding process up to the salary and benefits received upon the start of employment, a lot of time, effort and money will have been spent making this decision. This can prove even more costly if the employee doesn’t work out.

By weighing the hiring options available, an employer can figure out which type of employee is the right fit for their situation. If flexibility is the main concern, the best option would be temporary or contract workers. If a consistent workforce is desired, direct hire is the way to go.

Looking to hire? QPS offers temporary, temp to hire, and direct hire placements. Contact your local branch to learn how we can work for you.

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