Difference between Temporary Staffing and Permanent Staffing

Posted on: November 25 2018, By : Supriya
Temporary Staffing Vs Permanent Staffing
Temporary staffing and Permanent staffing both has their own pros and cons. Let’s see what both staffing defines.

What is Temporary Staffing?

Temporary work or temporary employment (also called odd jobs) refers to an employment situation where the working arrangement is limited to a certain period of time based on the needs of the employing organization. A temporary work agency, temp agency or temporary staffing firm finds and retains workers.

Temporary or contractual staffing is a short term based assignment, for which a talent is hired. This kind of a hiring decreases the liability of an organization, as these assignment may not include all the benefits which the organization may offer its full time employees. More importantly, since these staffing are for a shorter duration these are primarily outsourced on a vendor payroll. This makes the transition of the talent post assignment hassle free to the organization.

Pros:
  • You can choose to hire a contractor for any amount of period of time.
  • There are no tax cost of payroll, workers comp, state & federal taxes any more.
  • There are no benefits, health, dental, vision, 401K, stock options, pensions that need to be given.
  • Getting a consultant will give you the opportunity to have someone that has worked in many different types of organizations and industries. Having someone with this experience can accelerate their job capabilities within your organization.
Cons:
  • Spending a lot of time training the new hires for each project, resulting in a loss of productivity as “start over” with each new contract employee.
  • The contractor can feel like there is no job stability or security.
  • Have to pay more money on an hourly rate for a contractor because they do not have non-wage benefits such as health, vacation, holiday pay, sick leave, retirement and savings.
  •  May work on multiple jobs (contracts) at one time versus solely working on job or project.
What is Permanent Staffing?

Permanent staffing are when a recruitment agency provides a client with a permanent member of staff and charges an introduction fee often based on the annual salary of the position.
Organizations keep looking at hiring good leaders as part of their growth strategy. The challenge is to get appropriate alignment of leader's aspirations with the directions of the organization. To create high-impact solutions to enhance the competitiveness of the organizations. Increasingly, the search has become very specialized and focused. So, bring in expertise, network and market research to clients in identifying suitable leaders for their organization.

Pros:
  • Permanent employees develop a fondness of commitment to their employer and have a loyalty usually based on the feeling of job security.
  • We can also take a smaller team of permanent employees to train the new hires and keep the business running smoothly rather than starting over with a new team for each new project.
  • It can help the company to grow their business as employee get more efficient in their jobs through being familiar with the processes.
The best way to choose the right hire type, temporary or permanent, is to determine company’s specific needs. Identify whether the work is project based with a specified skill set need with long term or short term possibility OR if we need a full-time, permanent employee to where they tend to do their job more effectively knowing they have job security, long-term prospects and the opportunity to build relationships with other staff . This distinction should help guide our decision to make the best choice for every staffing related situation
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Seven Consultancy are the one of Top Reputated HR Consultancy in Mumbai, Navi Mumbai & Thane to provide Third Party Payroll. We are helping many SME’s and big corporates to take employee in our payroll to reduce their overheads. They are getting employee as per their needs & timing. It is reducing their Recruitment Process cost.

Our Consultancy are providing complete solution for Third Party Payroll. Organisation can plan their Manpower requirement schedule well in advance to increase Manpower or to decrease Manpower. In other way we are sharing their Job load.
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