Not every role needs to be permanent, and not every role should be temporary. The choice depends on the work you need done.

When permanent hiring makes sense

If the work is ongoing, needs deep knowledge of your business, or the person will grow into a larger role, a permanent hire is usually the better fit.

When a contract may suit better

For a defined project, a short-term gap or a specialist skill you need for a limited time, a contract arrangement can make sense.

Questions to ask yourself

  • Will this work still exist in a year?
  • Does the role need long-term knowledge of our business?
  • Is the budget fixed for a period, or ongoing?

Whichever route you choose, be clear with candidates from the start. Surprises about the arrangement are a common reason offers fall through.

Think about the whole cost and value

It can be tempting to compare only the headline cost of each route. Consider also the time it takes to bring someone up to speed, the knowledge that stays or leaves when the work ends, and the effort of hiring again if the need continues.

Being honest with candidates

Whichever route you take, describe it plainly in the advert and the first conversation: the length of the arrangement, whether it could change and what support is offered. Candidates make big decisions based on this, and clarity builds trust.

When you are unsure

If you cannot decide, talk it through with a recruiter or an adviser. Sometimes the right answer is a short arrangement that can become permanent if both sides want it, as long as everyone understands that from the beginning.

Common misunderstandings

A contract role does not mean a lower standard of candidate, and a permanent role is not a guarantee of lifelong employment. Both arrangements have terms, and both work best when expectations are written down and understood by both sides.

Questions worth asking candidates

  • Which arrangement are you looking for, and is there flexibility?
  • How much notice would you need to give?
  • What would make you consider a change of arrangement later?

Get the details checked

Contract terms, notice, probation and benefits are shaped by employment law and by your own policies. Have a qualified adviser confirm the details of any arrangement before you put it in an offer letter.