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  • article
27/02/2024

The Pros and Cons of Permanent Placement for Your Business

Thinking of hiring employees on a permanent basis? It might be a great way to grow your business, yet, it also presents its own set of challenges.

Paulina Twarogal

Content Specialist

Recruiting can indeed be a daunting task, especially when aiming to find the ideal candidate for a specific job. This is particularly true when opting to hire employees on a permanent basis. 

While it might be a great way to grow your business, it also presents its own set of challenges. Fortunately, permanent agencies offer assistance to businesses, helping you save time and effort in tracking down the perfect candidates. But what exactly does permanent placement entail, and what are the pros and cons associated with this approach?

What is permanent placement?

Permanent placement is a type of staffing service. Unlike temporary staffing, where employees are hired for a specific period, permanent placement focuses on finding candidates who are a long-term fit for the company. 

A staffing agency helps companies source and screen candidates, conduct interviews, and present qualified candidates to business owners for consideration. Additionally, the staffing agency may take part in negotiating salaries and benefits. Once a candidate is chosen, they’re offered a permanent position within the organization.

It’s a go-to choice for companies seeking to fill specialized or high-level positions or those with ongoing hiring needs.

When to choose permanent recruitment solutions?

What makes permanent placement an appealing choice is that it helps companies establish a committed team aligned with the organization’s mission and objectives. Similarly, it offers job seekers the stability and security they desire in their careers.

What does the permanent recruitment process look like at Neontri?

Our recruitment specialists go the extra mile to find candidates who not only fit the job requirements but also vibe with your company culture. By using the latest sourcing techniques and cutting-edge technology, we ensure that our clients receive top-notch recruitment services. Impressively, 98.3% of the candidates recruited by us remain retained for over six months.

Here’s how we handle the whole process:

  1. Analyze the information you gave us.
  2. Conduct market research to provide you with the resources you need.
  3. Identify candidates with the best role fit.
  4. Send you 2 – 3 resumes with relevant soft and technical skills.
  5. Facilitate a meeting or a video chat with the specialists you liked most.
  6. You decide on the candidate that fits your needs best.

Pros of permanent placement

In general, businesses that prioritize permanent recruitment over temporary options are those with stable operational demands or specific skill requirements for their workforce. The key reasons these employers opt for hiring staff on a permanent basis include:

Better access to top-tier candidates

Staffing companies possess greater resources and dedicate time to sourcing top talent, a luxury often unavailable to hiring managers. Moreover, recruiting for permanent positions often attracts a higher quality pool of candidates. With ​​low unemployment rates among senior specialists and soaring demand for talent, top-tier candidates are already working and have significant bargaining power. 

Offering job security is important if you want to encourage such talent to consider a job change. Permanent recruitment addresses this need, giving you a competitive edge in today’s fiercely competitive labor market.

Cost savings

The initial investment in permanent placement services may be high. However, in the long run, the cost savings can be significant. This is particularly true when considering the expertise and resources that staffing agencies bring to the hiring process.

By partnering with these agencies, businesses can minimize turnover rates and the need for frequent hiring, thus reducing overall recruitment costs. Additionally, the streamlined process facilitated by staffing agencies often results in quicker placements and better candidate matches.

Enhanced business growth

Over time, employees develop deep knowledge about the company, its processes, and its industry, which can lead to better problem-solving and innovation. Consequently, they become valuable assets to your organization. As they continue to grow, they can advance within their department, take on leadership roles, and play a pivotal role in driving business growth.

Increased commitment and loyalty 

Permanent employees often exhibit higher levels of commitment and loyalty to the company compared to temporary or contract workers. They are more likely to invest in their roles and contribute to the company’s growth.

So, the more your permanent employees stay with your company, the deeper their loyalty grows towards the business, brand, and colleagues. This loyalty contributes to fostering an engaged company culture, which, in turn, aids in retaining valuable staff members. To achieve long-term hiring goals, prioritize candidates who resonate with your values and easily integrate into your company’s culture.

Higher return on training investment

Because permanent employees stay with the company for a longer period than temporary workers, any training and upskilling investments made in new employees will remain within your organization. This ensures a much higher return on investment for the company.

Cons of permanent placement

Unfortunately, permanent placement isn’t without its downsides. Let’s delve deeper into some potential drawbacks.

Limited flexibility

We all recognize the significance of scalability in today’s business environment. Permanent placements, however, may limit a company’s flexibility to adapt to changing business needs. Once hired, permanent employees may be more difficult to adapt or redeploy compared to temporary or contract workers.

Moreover, employing permanent staff means committing to consistent salary payments, irrespective of fluctuations in business conditions. This can pose challenges for companies with fluctuating or seasonal labor demands, especially when operating within a fixed budget.

Cost of a bad hire

Although most permanent contracts come with a standard 90-day probationary period, sometimes it’s not enough to tell whether the employee fits in your company. Once this time is over, it becomes more costly to terminate the employment contract. 

It’s because you’ll be on the hook for notice periods, terms and conditions, as well as severance pay. Thus, if you’re hiring permanent employees, make sure the recruitment process is thorough enough to mitigate your chances of a bad hire.

Longer and more extensive hiring process

The recruitment process for permanent hires tends to take longer than most temporary recruitment processes. After all, who would like to hire a permanent employee without conducting multiple rounds of interviews, personality assessments, and reference checks? Nonetheless, this thorough process consumes considerable time and resources.

Legal obligations

Employers have certain legal duties towards their permanent employees. These include providing benefits like health insurance, and giving notice or severance if they need to end employment. If employers don’t meet these obligations, they could face legal trouble, like being sued for laying someone off unfairly. 

How can Neontri help you?

Permanent recruitment serves as an effective means to fill job vacancies and equip your company with skilled and experienced staff. However, the quest for suitable candidates can be both pricey and time-consuming, with potential worries about job security and loyalty.

That’s why, before making any decisions, weighing pros and cons is crucial. Yet, if you’re still unsure if that’s the right solution for you, reach out to Neontri. Our experts, armed with industry know-how, are here for you. With our Total Talent Management, they will make sure you find the perfect candidate for your organization.

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