As the economy resurges, more and more companies are adding employees. And many are doing so by way of temporary contract to permanent employment.
There are many instances when utilizing a temp-to-perm hiring process is the correct choice. Situations can range from budget and project considerations to the confidence a hiring authority has in a potential employee.
Candidates have a built-in incentive to perform early and impress, knowing that their hard work may result in them becoming a permanent hire. They are going to want to make an immediate impact on your organization.
Here are several situations in which a temp-to-perm arrangement may be the best means to a successful hire.
Desire to maintain conservative capital spending
Due to some previously lean years, budgets may still be slim while a team’s workload is escalating. Until the resources become available to increase headcount, using a temporary employee with the option of hiring permanently may be the most practical fiscal solution.
The temporary employee can easily be released if the workload ceases to increase, thereby not creating new hard costs for your company. At the same time, he or she will be well-trained and understand his or her duties and responsibilities should the resources become available to hire a permanent staff member.
Unseasoned HR manager
When new to hiring, using the temp-to-perm process may give the hiring authority the confidence he or she needs.
This will also provide the hiring authority, whether an HR manager, department manager or president, the necessary time to evaluate the temporary employee and ensure the correct choice is being made. If it is evident that the wrong decision was made with regard to hiring, the temporary employee can be released, saving the expense of a permanent hire and the possibility of a poor full-time employee on the books.
Multiple job specs
The temp-to-perm process can also be beneficial when it is uncertain who will succeed based upon the job specification. For example, a position may require both extensive technical skills and a strong marketing background.
Current market conditions dictate that the ideal candidate possessing both skill sets is not available, so the hiring authority is forced to make a choice between a candidate possessing extensive technical skills and a candidate with a strong marketing background.
Utilizing the temp-to-perm hiring process in this instance gives the hiring authority time to assess the candidate selected, ensuring that the candidate has the necessary skills to perform at a high level in his or her position and help the team succeed.
Unknown long-range needs
Often, companies take on opened-ended projects or programs that require additional resources. The project may last six months, but if all goes well, it could last years.
With an uncertain future, leveraging the temp-to-perm hiring process could prove very beneficial to the project’s success. A company can also limit its exposure by bringing additional workers on board on a temporary basis and only hire them permanently when it is evident the project’s length and scope substantiates it.
When looking to add staff to your organization, take the time to evaluate the temp-to-perm route. This may give you the opportunity to evaluate the candidate on the job to make sure you make the right hiring choice.
Whether it is budgetary constraints, confidence in a potential candidate, lack of potential candidates or uncertainties surrounding a project, chances are, staffing up by utilizing the temp-to-perm process is the correct choice.
Shawn Fier is vice president of Systems Research Inc. Reach him at (847) 585-8806 or [email protected]