Recruiting talent is said to be one of the main pillars of business scaling but is amazingly daunting, especially when trying to target the perfect candidate for a permanent position. As your business scales, permanent hiring may be an attractive approach in which one could lean. Much like any other model of recruitment, permanent hiring too has its challenges and advantages.
In this blog, we’ll delve into the pros and cons of permanent recruitment, taking key insights from various sources to present you with the best approach to take in the most effective way for your business. Whether you’re looking to grow your team with permanent additions or evaluating your current recruitment strategy, this article is going to provide you with all the insight you need.
What is permanent recruitment?
Permanent recruitment means recruitment of those talents who will continue with your organization for a long time and provide continuity and stability to it. While in temporary staffing, the talents are recruited for a fixed period for some project, whereas here the permanent one proves to be a long-term investment for your company. Normally this is done for jobs requiring specialisation, industry-based experience, or those positions without which the business cannot carry on its operations.
The Benefits of Permanent Recruitment
- Long-Term Stability and Continuity:
One of the most valuable long-term benefits of permanent recruitment is stability and continuity. By developing permanent employees within the business, employers create a committed team aligned with the company’s goals and mission. This continuity, in turn, leads to improved productivity, greater efficiency, and overall success. - Longer Term Cost-Efficiency:
Though permanent recruitment costs are much higher compared to the cost incurred on temporary staffing due to recruitment charges and training, it proves to be long-term cost-effective. Since it will prevent continuous hiring of temporary employees, you save on those costs. Moreover, with each passing day and month, employees become smarter and productive due to which they can give better output to the company. - Better Return on Investment in Training:
Permanent employees allow companies to invest more in training and development. When an employee stays with the company long term, the return on training investments increases, as these employees can apply the skills, they’ve learned to help the business grow and innovate. - Access to a Better Class of talents:
Permanent positions mean job security, and this might provide the opportunity for better applicants who may not want to leave their current positions for either temporary or contract jobs. Such candidates could possess much more valuable skills and experience that might be helpful in the long term for your company. - Increased Employee Loyalty:
Permanent employees are more loyal as compared to other temporary or contract workers. As a result of this job security, the commitment toward the organization’s values, culture, and goals becomes deeper. Such loyalty would further assist in creating a more enthusiastic and committed workforce, which may result in the better retention of useful talent. - More Business Growth:
Permanent employees tend to develop more familiarity with the company as time goes on. To this wealth of experience, they can increasingly solve problems, provide their own innovative ideas, and even take on leadership roles that spur business growth.
Drawbacks in Permanent Recruitment
- Inflexibility:
The major disadvantages of permanent recruitment deal with its inflexibility. Having said that, once permanent employees get recruited, employees will be committed to the company that may cause some constraints for an enterprise to respond promptly in case of any shift in demand or project requirements. - Cost of a Bad Hire:
Hiring a bad employee permanently is very expensive. Most permanent contracts allow a probationary period, but firing after the period is very high cost-wise. Many times, employers must bear the costs of paying severance, notice periods, and lawyers’ fees, especially upon dismissing an employee without showing fair reason or due cause. Read the article to know more about the cost of a bad hire - Time-consuming hiring process:
Permanent recruitment generally takes a longer route when it comes to hiring, as compared to temporary staffing. Starting from multiple rounds of interviews to exhaustive background checks, assessing cultural fit, and whatnot, the recruitment cycle often gets too long and resource intensive. This often presents a challenge in cases where the opening needs to be filled up fast. - Legal implications of hiring permanent employees:
provision of fringe benefits, adherence to labour laws, and providing protection against firing. The employers will have to make sure that all the legal formalities are met to avoid a time-consuming and costly legal fight in the future times. Furthermore, if a business wants to dismiss an employee, then it will risk legal claims on the grounds of not taking the proper procedure.
Weighing the Pros Against the Cons
Like all business decisions, permanent recruitment is chosen after weighing into consideration both the pros and cons associated with it. The permanent recruitment could be the best solution for the business that wants long-term stability and loyalty with a responsive skill level. It may, however, not be the ideal option for companies that want flexibility in their hiring policy or when the talent demand is fluctuating.
That means that even professional staffing agencies will be able to help those businesses for which permanent recruitment is the right option to make it a less painful process with less risk while searching for top talent. It saves the headache of recruiting and helps to filter out the best candidates to permanent employment, hence lots of time and resources are saved.
How We Can Help
At Caliberly, we specialize in permanent recruitment, working closely with businesses to identify and place highly qualified candidates who align with your organizational goals. Our recruitment specialists use advanced sourcing techniques and technology to ensure that your hiring process is smooth and efficient, giving you access to the best talent available in the market.
If you’re ready to explore the benefits of permanent recruitment for your business, or if you need assistance navigating the process, Contact us today.
