Since the pandemic, there have been significant shifts in hiring strategies across industries in Canada, one of them being the employer's preference in hiring permanent (perm) and temporary (temp) workers.

A recent study shows that it's becoming more common for businesses to employ permanent workers. The main reason is the uncertainty that comes with temporary staffing, affecting their employee retention rate and increasing hiring costs during these turbulent times.

Here are some reasons why employers are making this shift in 2022

Cost of Hiring:  When you decide to hire a temp, the most important scenario to consider is how much your business will suffer if the work goes undone or the position remains vacant.

A KPMG study shows that permanent employees with more tenure had higher skills and greater accuracy" than new hires. In fact, the results showed that over two years, there was a 20% improvement in their performance. 

Hiring permanent staff for roles requiring certifications and training is more cost-effective than hiring temporary staff. Temporary employees are cheaper to hire since you only pay for the hours and don't require intensive training. But the cost to rehire when they quit flattens the money you are trying to save.

Employee Experience: There's an old saying: "You attract more bees with honey than vinegar." For many companies, employee experience is their "honey,." Offering permanent positions always attracts the 'best bees' (in this case, candidates). Employees often stay with companies that offer permanent contracts as they look to secure their futures.

Many job seekers overlook contract-to-hire opportunities because they search for a permanent, full-time position with health and retirement benefits. In this pandemic world, your perks and benefits are the most critical factors in deciding whether an employee wants to stay with your company or not.

Employee Commitment: The longer an employee spends in your business, the more knowledge and experience they will gain. The importance of this varies from role to role.

For example, in some entry-level positions, it may not always be necessary to have a firm understanding of the company's inner workings to be effective. But for technical roles, the employees might need to become proficient in working around specific technologies and business processes, which can only be achieved by hiring permanent staff who stay longer.

Culture & Loyalty: People who come and go don't have the chance to be as involved with the company as those who remain on permanent payroll. The benefit of having permanent staff involved in the company culture is two-fold-helps achieve an engaged team with high loyalty to the business and colleagues and retains its valued staff. 

Temporary employees often work for multiple companies at the same time. This means that the employer may not have their full attention and energy. These employees may also leave for higher-paying or permanent positions with little-to-no notice.

If you want to hire people who'll stay on the job for a long time, look for people who share your own commitment to the company's objectives.

Training and Development: Temp staff are usually brought in to provide specific skills for particular projects. Employing temporary workers can be very expensive, especially if their employment will be for a short time.

With permanent staff, companies have greater flexibility in offering opportunities for training and advancement. These team members can be promoted to management positions, where they have the chance to lead future staff growth.

What's the takeaway?

While temporary and permanent employment may seem like two sides of the same coin, they are not interchangeable. These two staffing models have much less overlap than you might think, and many of the benefits and challenges are unique to each model.
A few decades ago, there was no such thing as a temporary worker. A permanent workforce was ideal for businesses, giving them employees who can be trained and have the same benefits and are committed to the company.

It's easier to find good contract help than it used to be – in fact, finding a solid temp contractor has never been harder in all of human history – but what about finding a solid employee- for the long term?


Talk to our experts to understand how we can hire great talent for your open jobs.