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Is Temp to Perm Losing Talent?

Is Temp to Perm Losing Talent?

July 27, 2021

The old idea of a temp to perm placement working as a “try before you buy” option for clients is beginning to become outdated.


With the number of vacancies available in the market at the moment and with some people still reluctant to move, candidates have plenty of options available when it comes to job opportunities and are always going to align themselves with the position most suited to them. Some clients are still asking for us to recruit in a temp to perm route and with the above in mind, is a temp to perm option going to be most appealing to candidates?


Short for “temporary to permanent,” a temp to perm employment is just what it sounds like: temporary work that leads to a permanent position (normally after the completion of a 12 week temporary assignment).


In a candidate driven market, how you work, respect and feedback to your potential applicants is a huge deciding factor on whether you secure that top tier talent. Candidate communication can underline your employer brand and team morale for both current and future staff. No one wants to feel like you’d rather test them out before becoming part of your organisation. More so when the job market is rife with opportunities for job seekers.


Is Temp to Perm really a cost saving?


The main reason many companies choose the route of employing on a temp to perm basis is cost. Believing it’s a more cost effective option allowing employers to easily end employment whilst the candidate is within the temporary phase.


However, even with a straight permanent placement, the employee still must complete their initial probation – so what realistically is the difference between both placement types?

Most agencies will provide a rebate fee should the employment of a permanent placement end before the 3 months probation.


Would a candidate move for a Temp to Perm job?


Yes, if they are currently temping, a temp or finishing a contract position. Many temps are open to a permanent position, so if you find someone that suits your business needs, offering them a permanent position works perfectly.


However, with vacancies at an all time high, how many candidates would really choose to leave a permanent position for the gamble of a temp to perm? Choosing a temp to perm route could really limit your talent pool. Especially with regards to permanently placed candidates.


This limited talent pool could ultimately end up costing you as a business more in the long run to secure the perfect candidate.


The Pro’s of a Temp to Perm job?


Of course, from a candidate’s perspective, if they are a temp or currently temping, the chance that the position could become permanent is appealing. This is likely to increase temp applicants from that of a temporary only job advert.


Mitigation of risk, in the sense that given the economic outlook, does an employer want to commit to a permanent employee contract or have a less formal agreement of employment? Asking a candidate to leave a permanent job for a position that potentially will be redundant in a few months is a risky move and could damage both the employees career path and the businesses brand. Offering an upfront temp to perm route of employment does mean that all parties go into the agreement with their eyes open and aware of the risks.


In addition, temp to perms can work effectively for particular positions that require a technical skill set as it gives the employer time to determine if a person has enough knowledge and experience for the role.


The Con’s of a Temp to Perm job?


As previously said, if you are recruiting on a temp to perm basis purely for cost effective reasons, it really isn’t a pro. It will ultimately limit your talent pool and could end up taking longer to recruit the position, costing you more in the long run.


You could be in a position to damage your employer brand if you are using a temp to perm option as a “try before you buy” as it is likely to put candidates off the position and make your current staff question where your loyalty lies.


True representation of your candidate’s ability to perform. As a temp worker, the candidate might be treated differently by other people in the office. They may be less willing to invest time or resources, knowing that you could be gone soon anyway. This could not only harm your team morale but also misrepresent your company culture to potential future staff.


So, what’s the best option?


Well that really depends. The type of recruitment you choose really does depend on the position you are looking to recruit, your current recruitment strategy, the employment market and your brand values.


Recruitment research is your best ally when it comes to sourcing top tier talent.


This year and for some time to come it is going to remain highly candidate driven so it’s essential your recruitment strategy works with the current market.


We would be happy to help with your recruitment strategy so get in touch if you would like to discuss.


Contact us

01225 805080

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