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Permanent Staffing vs Contract Staffing Services in 2023

Contract Staffing Services in India

Table of Content

- Introduction

- Permanent or Contract Staffing Services? Influencing Factors

- Contract Staffing vs Permanent Staffing

- Conclusion

- FAQs


With contract staffing not being a novel term anymore, companies are looking to start anew or revamp their workforce. The question remains whether contract staffing services or permanent hiring is the way to go. This blog will take you through all the expected trends for the year 2023 weighing out the pros and cons.

Permanent or Contract Staffing Services? Influencing Factors

Deciding whether contract or permanent staffing is better for your organization in 2023 depends on a few factors pertaining to what your company really needs at the moment. Here are the factors that could decide which option to select.

Skill Requirements

Some projects have an extra requirement, a certain skilled individual will be required on an urgent basis, or more individuals with the skill are required to complete a task faster. Temp-to-hire services are ideal for looking to fill a vacancy, as they will provide a practical idea about the scope of a candidate.

Nature of Work/Projects

Certain projects feature a long-term duration lasting for years while others have a short-term duration. Accordingly, companies must ensure they have adequate resources to see the project through to competition.

Based on the duration of the projects, companies can choose between permanent staffing or temporary staffing solutions. Contract staffing solutions are best for fulfilling vacancies for short-lived projects.

Compliance With Labor Laws

Labor laws must be followed and this could influence the outcome of how much of the workforce is given permanent contracts and how many will be offered contracts.

Workforce Budgets

Long-term/permanent contracts incur higher costs for the company so the company will have to assess its financials before committing to hiring an expansive workforce. Also, unpredictability in the market could make companies deviate from permanent hiring and choose contract recruitment.

Company Goals & Strategy

Based on future goals and strategies, companies would look to hire accordingly and ensure there aren't any surplus employees whose skills are not being appropriately utilized. The direction the company is looking to travel in will also affect the hiring choices.

Contract Staffing vs Permanent Staffing

Contract Staffing or temporary staffing and permanent staffing will be the most common hiring forms in 2023. But which one is better for a business? Take a look at the pros of each of these staffing solutions.

Permanent Staffing

Permanent staffing solutions have always been thought of as being the number one hiring solution, especially for larger companies. It has been used throughout the world and businesses of all.

Characteristics of Permanent Staffing

This traditional form of hiring ensures that a company has a full team as members are hired on a permanent basis until either party decides otherwise!

Career Growth

Long-term job roles often provide unique opportunities for new hires to learn and expand their skills. Ultimately this is crucial to grow employee skills and knowledge and equip them for senior and management roles as their career extends. This benefits the candidate as well as the company as long as the individual is able to convert on the opportunity given to them.

Job Security

Employees who are covered by a permanent hiring scheme will have job security, knowing that their services will always be required by the company. The feeling of security can impact an individual both positively and negatively, positively by making them feel secure and negatively because individuals may become too comfortable and not perform according to requirements.

Simplified Administration

The administration process becomes easier to handle with less paperwork because staff are retained for a longer period of time. They are kept on for a certain number of years and their contracts only need to be reviewed at that time.

Contract Staffing

Contract staffing provides contractual manpower supply wherein staff are given contracts which are often short-term.

Characteristics of Contract Staffing

Contract staffing agency services are the latest way of rapidly hiring skilled staff while remaining within the budget. This option remains viable for small and large-scale businesses.


These temporary staffing solutions offer both the company and the candidate an opportunity to experience working with each other. Also, the company gets the ability to see the work and skills of the candidate and whether it fits the company's requirements.


Since the company only hires resources that are required, that too on a contractual basis, costs are driven to a low. Also, additional resources to support full-time employees are reduced greatly.

Reduce Chances of Skill Shortage or Excess

Often companies find themselves in a predicament where they have too many individuals specializing in the same skill yet have no individuals with a certain other skillset. The availability of contract staffing services allows companies to avoid irregularities in workforce skill sets.

Time-Effective Hiring Solutions

This option of hiring especially skilled individuals is rapid as companies can partner with a contract staffing agency that is well prepared to connect pre-vetted candidates with a company with the matching vacancy and requirements. This makes it even easier to fill vacancies that have risen overnight when an important resource resigns.

Increasing Output & Skills

Since employees join the company at the earliest and are hired based on a particular skill set, they are able to make an impact straight away. This is especially true when they are hired to complete a project on a short and urgent basis. It ultimately leads to better efficiency and higher output.

Making Way for Hybrid Working

Contract staffing does make way for hybrid working, especially when contracts are shorter and the company would prefer the candidate to come into the office for a few days a week instead of every day.


Many companies have been trying out other forms of hiring to find the fit that suits their requirements to perfection. Contract staffing services have played center and point in helping to accomplish this. Although permanent staffing has been the norm, the market is shifting, and companies must evolve to stay ahead. The availability of hiring solutions alternative to permanent hiring is a welcome solution that companies should leverage in 2023 and beyond!


Q.) What is the difference between Temp-to-hire services and Contract staffing services?

Ans. The former involves candidates being hired for a certain period of time with the opportunity to be hired on a full-time permanent basis. Contract staffing involves partnering with a contract staffing agency to hire skilled individuals for a certain period of time.

Q.) What are the advantages of contract staffing?

Ans. The advantages of contract staffing are flexibility, cost efficiency, and options to hire from a vast talent. Also, contract staffing ensures that resources are easily and rapidly required when necessary.

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