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Is Temp-to-Permanent Hiring a Good Business Strategy?

9 February 2022

When hiring for your company, it is critical to select candidates who will excel in their roles and are a good fit for your company's values. Because many candidates are hired after only one or two stages of application, it can be difficult to determine whether you have the right person for a position and making a permanent hire can appear risky.

It is no secret that the contingent workforce, also known as the "gig economy," provides numerous advantages to businesses, including access to specialised talent, a larger labour pool, greater workforce agility, and a more cost-effective way to hire employees.

Many businesses continue to overlook one significant advantage of this workforce: hiring temporary workers with the goal of long-term employment. Businesses can reap long-term benefits from using a vendor-neutral management service provider (MSP).

Organisations can determine if a contractor is a good fit for the organisation by hiring temporary workers, with the goal of eventually making them permanent.

The following are some of the most significant advantages for businesses when it comes to temp-to-perm hiring:

1. Opportunity to try out a new temporary hire before making a permanent hire

There is more to temp-to-perm hiring than a few interviews; regardless of how well-structured and thorough a hiring process is, a candidate who appears to be a great fit on paper may be an uncomfortable fit in the real world. Candidates who appear to be excellent on paper may be less than ideal for the job. Companies that make the most of temp-to-perm hiring can avoid bad hires by putting temporary employees through real-world tests. Great news: if they meet the requirements of the role, the organisation can now offer them a permanent position.

2. Cost Reduction

Hiring can be an expensive process if done incorrectly, and this is especially true when full-time employees are not the best fit for the organisation.

Advertisement, recruiting, and hiring must all be completed, not to mention the possibility of an employee filing a wrongful termination or unemployment claim against an employer if things go wrong. Turnover costs are difficult to avoid, but hiring the right person the first time can significantly reduce them.

Added to this, if you have a contract in place with the supplying agency that allows temp to perm placements, it can often be a very cost effective way of recruiting, without the associated recruitment fees. This is because the supplying agency makes their margin on the hours that have already been worked.

3. Is the new hire a good fit for the culture of your company?

It is difficult to determine whether or not a potential employee would be a good fit for a company based on a tour of the office and a few interviews. However, cultural fit is critical for a company's success. If an employee does not fit in with an organisation's company culture, it affects more than just the employee's work and attitude. Their personal lives are also influenced.

Temporary employees will have the opportunity to assess the company's fit with their professional and personal goals. Someone cannot know if a partnership will be a good fit for them and the company unless they have worked with them for some time, doing the job and learning how the company and their peers operate.

4. Build a blended workforce

Blended teams are a relatively new term in the corporate world, but they simply refer to a combination of direct personnel hires and contingent workers deployed to meet an organisation's strategic needs.

A temporary workforce can significantly contribute to your workforce by providing you with access to a pool of employees with specialised skills and work experiences.

Get in touch! We can help.

Datum RPO can help you to manage your agency providers, ensuring that the workers they provide are legally compliant, as well as deliver significant cost savings.


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