Temp to Perm – Why it usually doesn’t work
Temp to Perm – Why it usually doesn’t work
Here is the scenario. A potential client calls in and excitedly says they are looking to hire for a small team of assembly fitters. Great we say. And then they say that after internal discussions, they have decided to take people on Temp to Perm.
Why Temp to Perm?
We ask them why temp to perm and the logic they give does make sense. On the surface of things anyway.
If we hire them and they are no good we haven’t just shelled out a huge fee to yourselves. Plus if the work we hire them for actually doesn’t require 10 people and 8 people will do, we can let the superfluous people go them go with minimal fuss. This is valid logic. For a temp the client would only be paying an agency hourly margin rate for the hours the person has worked as opposed to a percentage of their annual earnings up front. It saves a fortune.
How have you got on so far looking for people?
If the client has only just started looking they are generally adamant that temp to perm is a good tactic. But if they’ve been looking for a while they tend to have had some issues. And it tends to be that if the client is still fixed on temp to perm they haven’t acknowledged why they have had issues.
What are the issues they will definitely face?
Two things tend to be the issue. 1-We can’t find people. And 2-People keep messing us around.
Point 1 could be rationalized as purely a tough marketplace for the chosen skill set. After all, that’s why the help of a recruiter would be sought. But as for people messing you around? Is that luck, a sign of the times, a symptom of that industry? Or is it something else.
Put yourself in the shoe’s of a candidate
If we take a candidate who is in work and seeking a new role. If they are permanently employed why would they leave a permanent job to take a job that begins temporary, with no guarantee of going permanent? Logically, when other permanent jobs are available you’d go for them. So why would they apply for a temp to perm role? Guess what, they won’t.
What about a candidate out of work. Surely they would be interested? After all they need a job.
Yes they need a job. But that’s the problem. They really NEED a job. But not necessarily your job. Just a job to tide them over until they find what they actually want. So guess what they’ll use your job for fall back and go after what they actually want. If they’re out of work, a temp to perm job starting as temporary does not offer security.
What about temporary workers who often do agency work?
If someone is a temporary worker you have to ask why? It’s either that they need short term jobs and periods out of work for lifestyle or personal circumstances or that they cannot hold down a permanent job so have settled for temporary work.
Either way they’re a temporary worker for a reason if that’s their history. Offering them the chance to go permanent may not be what they want or are actually motivated to do. So guess what, you will get messed around.
But isn’t the agent going to say that to make more money?
In the short term a permanent placement will make more money for an agent yes. However, how short is a career of a recruitment agent? I have been doing it for the best part of 13 years now as an example. And the reason I’ve been doing it so long is that clients of over 10 years keep coming back to me. Why is that? When I place someone with them, they tend to stay and add value for money.
If I took the short term money grab route to make a quick buck I’d have lost out on many clients giving repeat business. So what would be the benefit of that? It’d be a quick win, for long term pain as opposed to giving quality advice and sincerity for long term gain.
Conclusion
The truth is Temp to Perm sounds great on the surface, but is deeply flawed. It doesn’t really work unless you are comfortable with people who will mess you around. If you’re fine with that and can accept it then great. If you can’t and need people reliable then give us a call.
