Comparing Permanent and Temporary Hires

The business operations of various industries have evolved in the past few decades with more seasonal projects involved. Therefore, more companies are recruiting temporary hires to cope with periodic needs to increase productivity.

We have compiled a Comparison of Permanent and Temporary Employees to help you better understand each form of employment’s function:

Permanent Employees

Permanent employees work for a company on a long-term or permanent basis. They are paid a fixed salary and enjoy employee benefits such as healthcare, retirement benefits, and paid time off.

Most permanent employees are generally protected from abrupt job termination by severance policies, like advance notice in case of layoffs or formal discipline procedures. 

Permanent hires should be aligned with your organisation’s vision and corporate culture. They are essential team members and often hold critical roles, such as management and specialised positions. Thus, they are also main contributors to your organisation’s long-term business development goals.

Temporary Hires

Short-term or temporary workers are individuals hired for a specific period to complete a particular project.

This form of employment is often used when a company needs additional expertise or support for a seasonal project or has limited budget to hire permanent employees. In many cases, temporary employees are hired through a third-party staffing agency.

Temporary hires suit companies handling specific projects that needs to be delivered quickly and efficiently. These employees are often highly skilled and experienced professionals who enhance your permanent workforce’s productivity.

As temporary workers are generally not entitled to employee benefits, they incur less costs for employers. Furthermore, they offer employers more flexibility because you can recruit and dismiss them by specifying their employment time.