Temporary vs Permanent Jobs

Adam Palmer • November 13, 2020

Whether you’re looking for a job or hiring for your business, understanding between temp and permanent employees is essential.



Temporary (Temp) workers are those that are hired for a predetermined amount of time. These are typically contract and seasonal employees.


Pros - Temp positions allow a lot more flexibility for the employer and employee, allowing both to test each other out without a full commitment. And many times, after a trial period, temp positions can turn into full time


Cons - Training a temp worker can still be costly and time-consuming, especially if the person does not work out. While it’s not a rule, temp employees are not usually offered the company’s healthcare options. This can be difficult on the employee if they have a family.


Permanent employees are hired without a predetermined time frame. Employers: do not forget that if you have 50+ employees and hire a full-time, permanent employee, they are entitled to healthcare, according to the IRS.


Pros - A permanent position has a significant advantage for the employee – stability. Stability in a worker helps decrease their stress and therefore increases their productivity. As well, full-time employees are offered benefits.


Cons - Benefits are costly to the employer. 


As you can see, both have positives and negatives. We suggest speaking with one of our highly knowledgeable recruiters to learn what is best for you or your company.

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Finding the right talent is important for your business to grow, but it can also be one of the most difficult. If you make the wrong hire, it can be a waste of money and productivity. At Summit Careers, we know this is why more employers are trying the temp-to-hire staffing model. Think of a temp-to-hire arrangement as a real-world evaluation period. An employee works temporarily through a staffing partner while the employer and candidate decide whether it’s a good fit. This process can benefit both the business and the employee. Eliminating the Financial Burden of "The Bad Hire" The financial impact of a mismatched placement is due to costs of background checks, onboarding time, and advertising overhead. Research indicates that a bad hire can cost 30% or more of that employee's first-year projected earnings. Under a temp-to-hire structure, the financial liability shifts significantly. Because the candidate remains on the staffing agency’s payroll during the trial period, the direct financial hit is limited. If the candidate fails to meet performance benchmarks, the assignment can be terminated without addressing unemployment claims or severance packages. True Skill Validation An interview process only reveals how well an applicant can navigate interviews. Resumes can tell great stories, but the truth comes in a real professional evaluation. The temp-to-hire framework grants managers a front-row seat to an individual's authentic work ethic, problem-solving capabilities, and technical skills during the agreed-upon trial period. Employers can assess factors such as punctuality, adherence to deadlines, and job accuracy. Cultural Alignment While someone may have all the right skills, they may not be a cultural fit for the organization. This means they don’t communicate well with the team. This can disrupt projects and upset other team members. By integrating someone into your daily work environment on a trial basis, you get a real look at how they interact with supervisors, peers, and clients. It provides the team with a preview of future collaboration. If it’s not a good fit during the trial period, it likely won't be a good fit in a permanent setting. Protecting Morale When an open position goes unfilled for months, your existing team bears the brunt of the burden, absorbing extra shifts and splitting duties. This causes burnout and spikes your attrition risk. If you rush to make a permanent hire and it is a poor fit, it sets the cycle in motion again. Temp-to-hire offers immediate operational relief. The staffing partner handles the heavy lifting of sourcing, screening, and the rapid deployment of qualified talent. Your current workforce gets the immediate support they need. Leadership gets the necessary time to evaluate the candidate's long-term fit. Budget Adjustments If your business has a slow season and a busy season, temp-to-hire roles let you scale your hiring to meet these needs. This way you can save money when you don’t need the extra help. How Temp-to-Hire Can Help Your Business Utilizing a temp-to-hire strategy takes the guesswork out of whether a new hire will be a good fit. By partnering with a dedicated staffing agency, your leadership team gains complete confidence that every permanent addition to your organization has been proven and fully aligned with your long-term vision. To learn how a temp-to-hire situation can help your company, contact Summit Careers today. We help countless companies find the right employees daily.