Looking to fill a skills gap with a fast recruitment process? Hiring temp-to-perm (temporary-to-permanent) employees offers several advantages to companies, including greater flexibility, cost savings and risk mitigation, to name just a few.
In a fast-changing market, many businesses tap into our interim solutions and exercising the option to hire at a day rate or fixed term contract in a fast-changing market, before committing budget to a permanent hire. Our UK contract recruitment specialists at Robert Walters define some of the benefits of adopting a temp to perm hiring strategy:
Reduced hiring risk
One of the biggest benefits of a temp-to-perm hiring approach is the reduced risk involved in the recruitment process. Companies have the advantage of offering a trial period during which they can evaluate the employee's skills, work ethic, and how well they fit with the company culture before committing to a permanent hire.
This is similar to contract recruitment, where employees are hired for a set period, but the temp-to-perm model adds the potential for long-term employment. By assessing an employee’s performance in real-world situations, employers can make more informed decisions and avoid the consequences of a poor hire.
Cost efficiency
Temp-to-perm hiring can also save companies money in several ways. First, businesses can avoid upfront costs associated with full-time employees, such as benefits, insurance, and other long-term employment commitments.
Contract recruitment agencies manage payroll and benefits for temporary workers, making it even more cost-effective. Additionally, companies can minimise the high turnover costs often associated with permanent hires, as temp employees can be let go without the need for severance packages or other financial obligations.
Flexibility in workforce management
Flexibility is a key advantage of temp-to-perm hiring, especially for businesses that experience fluctuating demand. Employers can bring in temp workers to handle seasonal or project-based needs without a long-term commitment. If the company finds value in the temp worker's performance, they can offer them a permanent role.
This is common in contract recruitment, where workers are hired for specific tasks or projects but may be retained if their skills are valuable to the business. Temp-to-perm offers the same scalability, allowing businesses to adjust their workforce as needed.
Improved employee retention
Temp-to-perm hiring can improve overall employee retention. By allowing employers to assess an employee's fit within the company and its culture over time, they can convert only those who show long-term potential. This results in better retention rates since permanent hires are more likely to stay with the company.
For employees, transitioning from a temporary to permanent role can boost confidence and job satisfaction, as they have already become familiar with the job and the company during their temp phase. This type of arrangement mirrors the goals of temp hiring, which often provides businesses with high-quality candidates for specific roles.
Faster hiring process
Hiring through a temp-to-perm model often speeds up the hiring process. Staffing agencies and contract recruitment firms usually have a pool of pre-vetted candidates ready for temporary assignments. As a result, companies can quickly fill vacancies, which is crucial when facing urgent staffing needs.
Since the temp employees are already pre-screened, the initial stages of recruitment (such as interviewing and background checks) can be streamlined. Moreover, temp employees are typically ready to start almost immediately, making this a highly efficient solution.
Skill matching for specific needs
Temp-to-perm hiring allows companies to match employees’ specific skill sets to particular roles or projects. Businesses can hire temporary workers with specialised skills for short-term needs, and if their expertise proves essential, they can be transitioned into permanent employees.
This is similar to contract recruitment, where employees with niche skills are hired for specific tasks. The difference is that temp-to-perm workers have the potential to stay with the company long-term if their skills and performance align with ongoing business needs.
Workforce flexibility during uncertain times
Temp-to-perm hiring is especially valuable during periods of business uncertainty, such as economic downturns or internal restructuring. Employers can add to their workforce without making long-term commitments.
If the business environment improves, temp workers can be transitioned into permanent roles, but if conditions remain uncertain, the flexibility of the temporary arrangement allows the company to scale down without the complications of laying off permanent staff.
Mutual fit for employers and employees
The temp-to-perm model benefits both the employer and the employee by providing a "try-before-you-commit" approach. Employees can test whether the role and company are a good fit for them before making a long-term commitment, while employers can evaluate the employee’s performance and cultural fit.
This is a key feature of the contract recruitment model, where both parties can assess compatibility during the contract period. However, temp-to-perm adds the opportunity for employees to seamlessly transition into a permanent position if the fit is right.
Access to a broader talent pool
Temp-to-perm hiring, much like contract recruitment, gives companies access to a wider talent pool. Many talented individuals may not initially seek full-time positions but are open to temporary roles.
By offering a temp-to-perm pathway, companies can attract candidates who are hesitant about full-time employment upfront but are willing to transition if the job and company align with their career goals.
Temp-to-perm hiring combines the flexibility and specialised advantages of contract recruitment with the long-term benefits of traditional hiring, offering companies a versatile and low-risk approach to building their workforce.
Robert Walters is a specialist contract recruitment agency and a partner of the Institute of Interim Management – learn more about our contract recruitment services here.
