Temporary versus permanent recruitment: the pros and cons

In the Sydney Accounting market, many organisations use a combination of permanent and temporary staff. Whilst this approach enables businesses to facilitate seasonal peaks and troughs and plan their hiring accordingly, it can sometimes be difficult to identify whether temporary or permanent recruitment is the best option. In most cases, it depends on the situation. Here we discuss the pros and cons of each to help you choose the solution that best fits your needs.

Temporary accounting professionals

So what are the pros and cons of hiring temporary accounting professionals? 

Pros

1. Adjust quickly to workload fluctuations

When there is a fluctuating volume of work, temporary resources can often be the best solution. Whether it’s to support extended employee absences, unexpected demands, special projects or employee shortages, they can provide your business with the qualified staff it needs in periods of high demand.

2. Evaluate workers without commitment

Hiring temporary workers on a temp-to-perm basis can be an effective and cost-efficient way to ensure that someone has the skills for the job and is a good fit for the company, before making an offer of permanent employment. For whatever reason, if it doesn’t quite work out then it’s much easier to find a replacement from your Recruitment Agency, if required, compared to other solutions.

3. Immediate availability

If you need help at short notice, a temp is a great solution! By working with a specialist Recruitment Agency, they will vet staff and usually have a pool of experienced Accounting professionals readily available at any given time.

4. Access to specialised skills

Should you require specific expertise for one-off projects/requirements, using a contingent workforce means gaining access to specialised skill sets and experience only when needed.

Cons

1. Training needs

Like any other hire, some training and guidance may still required to get a temporary worker up to speed and integrated into the company. No matter how experienced they are, you will need to invest time to get the most out of them.

This can be minimised by hiring the same temporary workers each time, but if they are great at what they do, they might not be available when you require them.

2. Team fit

When employing temporary staff, there can sometimes be a trade-off between hiring someone who can hit the ground running or someone with an ideal cultural fit. To avoid issues relating to culture fit and the impact on the team dynamic, get the whole team on board to help create a positive, welcoming atmosphere. Do everything you can to integrate temporary workers into the team as you would a permanent employee.

3. Potential lack of commitment

The very nature of short-term assignments (perceived or otherwise) means it can be difficult to keep a temporary worker as motivated as a permanent employee, usually because they think they’re not there for the long term. This isn't always the case, but generally, the greatest motivation is the potential to secure a full-time position!

Permanent accounting professionals

Hiring someone permanently for your team may be the best solution; here are just some of the pros and cons:

Pros

1. Longevity

Knowing that your tenure in a business doesn't have an end date creates an assurance that can’t be gained from the possibility that your short-term assignment could end quickly and with little notice.  A permanent employee has job security, long-term prospects and financial stability, so inevitably these factors may encourage them to feel more motivated to perform and contribute to the company. 

2. Culture and loyalty

Those who come and go are far less likely to have the time to immerse themselves in the company and all it involves. Over time, permanent employees typically experience heightened loyalty to the business and their colleagues, helping to retain your most valued staff.

3. Advancement and business growth

With permanent staff, investment in training and identifying future opportunities is far more viable. They are the ones who can advance through their department hierarchy, take on future leadership positions and form a key part of business growth.  

Cons

1. Recruiting efforts can be time-consuming

Finding the right talent for your workforce is a time-consuming and costly endeavour. Diverting the time and resources required to advertise open positions, screen candidates and conduct interviews, can stall projects and reduce productivity. This is where a specialist recruitment agency can help, so you can focus on what’s important.  

2. Limited availability

A lot of the time, the most suitable Accounting talent will be in permanent employment. This means that employers will need to wait for their new employee to work out their notice period before they can officially join the team. This can result in understaffing in the short term and put a greater strain on the team, potentially impacting productivity.

3. Lack of flexibility

Permanent employees are employed under a legal contract that both parties have agreed upon. With legislation, terms and conditions, and notice periods to consider, it’s far more difficult to make personnel changes than with temporary workers.

In summary

The reality is that temp versus perm recruitment both have benefits and challenges. As such, whether you choose a temporary or permanent employee to fill your vacancy, or a combination of both, defining your company's needs is the first step in successfully creating and managing an effective workforce.

For more advice or help with your hiring needs in the Sydney Accounting market, get in touch with our team of accounting recruitment experts now.