THINKING OF HIRING A FIXED TERM RESOURCE? WHAT TO CONSIDER!

Precision Insights

During economically challenging times fixed term vacancies become more common as businesses aim to reduce potential cost and risk. The thinking is that by embarking on a fixed term hire businesses mitigate the cost and risk associated with permanent and contingent hires.

The reality is very different.

Pros

  • Resources can naturally finish at the end of the duration of the fixed term contract with no obligation to extend
  • Quicker approval process

 

Cons

  • Risk – over 38% of resources do not complete the full term of a fixed term contract
  • Fixed term contracts are not as attractive to candidates when compared to permanent or contingent opportunities – lack the security benefit of permanent positions and the financial benefits of contingent contracts
  • The pool of candidates interested in fixed term opportunities is significantly smaller when compared to the permanent and contingent candidate pools
  • The calibre and skill level of candidates who consider fixed term opportunities is not as high
    when compared to permanent or contingent resources

 

Fixed term contract hires are viewed as a cost saving and reduced risk solution by many businesses. The reality is that by embarking on a fixed term hiring solution you may be increasing the risk and cost to your business.

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