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