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Tough times call for tough decisions, and the era of the pandemic followed by the recession changed the course of hiring for many companies. While the era of contract-based jobs is taking up a lot of space in the hiring market, the old-school method of permanent hiring stays equally important. These different types of hiring come with their advantages and disadvantages. The question that remains intact is which type of hiring is most beneficial for the current economic downfall faced by the world.
Permanent Hire
Permanent hiring is the age-old technique of hiring employees and eventually permanently recruiting them to be a part of your organization. While this kind of hiring emerged ages ago, the coming-of-age generation has its ways to deal with both hiring and recruiting. The permanent fashion of hiring is no longer limited to minimum monthly payroll and a clear-cut nine-to-five job. It includes aspects like additional benefits of health insurance, designated vacation leaves, and in-office refreshing activities. Also, offices that aim to hire the cream crowd work a lot on designing an appealing workspace with gyms, sleeping rooms, and game rooms. Recently the trend of ‘only four work days’ has started a new movement of change all over the world.
Keeping aside all the fancy facts of such hiring the bottom line is when you are hired you gotta work hard to create a positive impact. Some of the key advantages of such a working system are:
Regular pay structure and ensuring monthly income which stays stable.
Additional income benefits like bonuses and other perks
Yearly increment provides a surety of an increase in pay grade every year.
Health and other damage coverage in terms of loss caused by the company
Keeping in mind the advantages, it seems like many other factors have contributed to the workforce still shifting towards contract hire. These disadvantages include;
Even though there is an increase in pay grade, the increase is usually only 10% to 20%.
Organizational politics drive many people away from permanent placements
Lack of work-life balance due to over workload
Expectations to do tasks that are beyond key responsibilities
Fear of losing the job due to economic crunch
These might be a few of the backdrops of permanent hiring that have been prominently faced by the employees. No matter the ups and downs, millions of people still work for the largest companies in the world. With companies like Google, Amazon, Accenture, Microsoft, Infosys, Landmark, and EY having offices in multiple countries they still strongly hold a majority of today’s workforce.
Contract Hire
The ultimate shift towards offering contract jobs came into the picture primarily because of two reasons. Firstly, Due to the economic losses faced by companies from every sector the world over they started considering contract-based jobs, and even government departments opened up to the idea of contract hire. Secondly, the growth of start-ups has changed the course of hiring as they believe in the new age concept of work and aim to employ flexible workers to decrease cash flow at every cost. Flexible worker recruitment for start-ups has now grown to an extent that they barely hire permanent staff.
Let’s discuss some of the pros of flexi staffing to understand their growth structure better:
They create opportunities to work with multiple organizations at the same time and gather good experience
The cumulative pay is higher and the increment stays constant
Contract resource provider companies simplify the hiring process and provide resources in a simple manner
The hassle of everyday office visits, gossip, and workload decreases
People can from the comfort of their homes or any location they prefer
These might just be a few advantages but the comfort of contract hiring is not all rainbows and sunshine. They do have a hint of lows which usually scare people to start a living based on freelance jobs.
Here are some of the key cons of contract-based hiring:
Lack of stability, while some days are extremely productive individuals can go months without good work opportunities
Lack of trust in the contract provider
The initial period of switching to freelance work can be difficult due to a lack of good opportunities
What is your ideal style of work?
There is no one clear answer to this question, as both styles of employment come with their pros and cons. Not only this but, when the same company has hired staff permanently and also opens up positions on a contract basis many questions come up.
Is a contract job better than a permanent job?
Is the company planning to shift to remote and contract work only?
One can go on with these questions but the answer lies in the market trends of market leaders themselves. A leading start-up Byjus recently laid off over two thousand recruits and still has openings for contract jobs, Byjus is on the top list of companies hiring flexi workers. This proves that at the moment with recession prepared to hit the market at its all-time low, therefore permanent jobs are not safe. Those who have permanent jobs might not feel safe with the recession layoffs. Meanwhile, for those who are working on a contract basis, this might be your time to shine.
To conclude these two are very different methods of work, and it is important to understand that both work for different individuals in their way. While contract-to-hire jobs might be the first choice for someone, others might stick to looking for permanent jobs while they do contract work in the meantime. Not to forget that the market is still dominated by permanent employees however, the growth in contract job openings has been phenomenal. These changes are supported by contract staffing solutions providers who help an organization get a direction towards resourceful hiring and avoid the problems faced by companies in such a situation.
Thus in a market going through multiple changes at once, there cannot be a winner or a loser in terms of hiring. The only winner would be the person who makes the correct decisions and studies the hiring trends of the market.
