When it is time to hire, companies have two choices: temporary and permanent employees. Even if they use construction recruitment services, they will need to know if they’re hiring someone for the short- or long-term.
The Bureau of Labor Statistics claims that employment for all types of employees was 8,033 in November 2023, which is expected to jump by three percent in the coming years. This indicates you’re likely to continue requiring employees, which means keeping up with your hiring needs.
Before using construction recruitment specialists to find the best talent, it’s important to distinguish the differences between temporary and permanent staff in the construction industry. Let’s learn more.
Differences Between Permanent and Temporary Employees in the Construction Industry
Before turning to construction recruitment for talent acquisition, it’s important to understand the differences between temporary and permanent employees:
Permanent Employees
Permanent employees can be either full- or part-time. Their work is ongoing, so there’s no predetermined end date. Typically, people seek these career opportunities as a direct-hire, but some will go through a construction staffing agency.
However, recruiters can also find permanent full- or part-time employees to help construction companies deal with finances, accounting, and more.
Temporary Employees
Temporary employees include contract and freelance employees and those found through an employment agency. They are only there for a specific amount of time, such as during the busy or peak season. Likewise, they could be brought on indefinitely, but the arrangement isn’t permanent.
A recruiting agency can also help place temporary construction professionals, especially for specific projects. You still want the top talent and can get it without worrying about taxes and benefits.
Benefits of Hiring a Temporary Employee
Here are the benefits of hiring a temp:
1. Offers a Trial Run
The tough part of hiring the right candidate is knowing how they will work with others. A temporary work arrangement gives you a chance to see how they perform their construction jobs before offering permanent employment (if that’s a possibility in your situation).
2. Provides Specialized Expertise
Temporary employees give you access to specialized knowledge from talented individuals without hiring someone full-time. They’re ideal for many types of construction jobs, such as construction management and accounting.
For example, you land a big construction project that requires a CFO, CEO, and construction management personnel. Instead of hiring a full-time, permanent team, you choose temp construction talent because you only need them for a specified time frame. You still get the in-depth knowledge you require without the extra expense.
3. Cost-Effective
If you’re only focused on money, it’s often more affordable to hire a temp for certain construction roles. Then, the only wage-related cost you have is compensation; you don’t have to deal with benefits or taxes.
Drawbacks of Hiring a Temporary Employee
There are also drawbacks to hiring a temp employee, such as:
1. Higher Cost Per Hour
Since temporary workers don’t get the same tax contributions and benefits as permanent ones, they will often come with a higher hourly rate. Therefore, you must determine what you require, how long they’ll work there, and the scope of the job. This might affect your recruitment needs for construction talent acquisition.
2. Potential for a Higher Turnover
A temp employee might choose your position now, but they will be looking for permanent job openings in the future. When they find a better opportunity, they’ll jump at it and leave you behind.
3. More Time Before Productivity
Temporary employees might have construction management education, but you’ll still have to train them about your company and ways. Therefore, you might have to wait longer before they’re productive, even if they’re the top talent in the field.
Advantages of Hiring a Permanent Employee
There are also many benefits of hiring permanent employees, such as:
1. Workforce Stability
Since permanent workers are permanent, they will likely contribute to the company’s knowledge base. In fact, they have time to accrue the knowledge they need and will refine their workflows as time goes on. This will stabilize your workforce, and construction recruiting firms can help you find these candidates.
2. More Engagement
A permanent employee applied for the position because they wished to work in the field instead of requiring fast cash or being assigned by a temp agency. Therefore, they often do a better job and are more invested in the work. Plus, they could advance within the company; this is a huge motivator for better performance.
3. Stronger Work Culture
Typically, permanent employees develop stronger relationships with their colleagues. Therefore, they feel they belong. Of course, talent acquisition through construction recruiting still takes time, but you can find permanent employees who care about your company’s mission, causing them to be committed to the brand. This will bring a more positive company culture!
Disadvantages of Hiring a Permanent Employee
As with most things, permanent employee hiring has its disadvantages. These include:
1. Potential Recruitment Challenges
Working with construction recruitment companies can make life easier, but it’s still harder to attract and identify the top talent for your permanent positions.
2. Up-front Commitment
Hiring people for your staffing needs is an investment, and it’s one of the most expensive things you will engage in. Therefore, when you make offers to permanent employees, you will take on a greater financial risk than if you work with a temporary one. Likewise, firing permanent employees can be harder.
3. Higher Expenses
The whole process of hiring a permanent employee is more expensive. You must consider PTO, retirement plans, health insurance, training, taxes, and more.
Working with Construction Recruiters Can Help You Choose Between Temporary and Permanent Employees
Construction industry recruitment is crucial when you need to work with general contractors and subcontractors to fill positions for operations, human resources, finance, and accounting needs. Overall, an executive search from The Quest Organization is ideal. Please call 212-971-0033 or email info@questorg.com to request your free consultation to create a recruitment strategy!
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