How Fast-Growing Companies Can Scale Up Hiring

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Businesses in the growth stage have unique hiring challenges that require detailed planning and foresight. Hiring the right people for the right roles is critical to getting the desired outcomes. But equally important is finding the right mix of permanent, temporary, and contractual employees in meeting growth challenges.

Temp, Perm, Or Contract Worker?

Temp, perm and contract workers fulfil different objectives. Permanent employees are part of a long-term planning—the people you want by your side for years to come. Temporary employees, however, are hired for flexibility and optimisation of hiring costs. Contractual employees are hired for a certain period for a pre-determined task.

The hiring mix you eventually opt for also depends on the size of your business and the way you operate. For instance, the hiring strategy of a small business will understandably be different from that of a large corporation. A large business will probably want to keep functions like HR and accounting in-house, while a smaller company may prefer to outsource these activities.

Benefits of Hiring Temps

Trends suggest that many companies are preferring to hire temporary employees in the current scenario. Covid-19 has forced businesses to fall back on temporary employees to respond to market exigencies by maintaining flexibility in the workforce.

Besides cost advantages and flexibility, temporary hiring allows you to evaluate potential employees before absorbing them on a permanent basis. This is known as a temp-to-hire arrangement. The great thing about a temp-to-hire arrangement is that it allows you to test drive before buying. Credentials presented in the resume aren’t a guarantee of the efficiency of an employee. But when someone is hired as a temp, you have enough time to assess their skills and determine if they will be a good fit for the company.

If you are a company that depends on seasonal sales, temps are a great option as you won’t be required to employ them throughout the year. Moreover, by employing temp workers that have worked in other companies, you will gain access to new perspectives. Hiring temps is also the right strategy for enterprises where employees are more likely to get stressed and exhausted. There are jobs, for instance, where employees are expected to work double shifts and weekends, resulting in mental and physical fatigue. Having perms in such roles may dampen team morale.

Should You Go for a Perm?

A permanent employee, on the other hand, is the right fit if you are looking for longevity and have enough ongoing work. A person who has been working in a company for long will have more institutional knowledge than any recent hire. If your success rate hinges on the institutional knowledge of your employees, hiring permanent employees is better. In case a company wants to hire executives for an expensive marketing campaign, it is better to go with a team of perms.

Proper Use Cases for Contract Hiring

Contractual hiring works well when a given position requires sincere work but only exists for the short term. Jobs that may last for three, six or nine months are better suited for contract hiring. If you are running a coaching centre and intend to start a one-off course for six months, and there is no staff on your team who could take classes, getting on board a part-time instructor will help you resolve the issue.

Converting a Temp or Contractual Position to Perm

There are some scenarios when converting a temporary or contractual position to permanent is the best way ahead. If the training programme for a given position runs for several months, you can devise a strategy which mandates temporary status of the employees for the training period and three subsequent months before offering the better performers a permanent position.

How to Get the Best Out of Your Temps

To get the best out of your temporary employees, you need to develop a culture in your company where the perms give respect to temps and offer them adequate assistance whenever required. They should also be formally introduced to co-workers and departmental heads to enhance their integration with the company.

Don’t Lose Focus On HR

A proper people strategy is a key component of business operations especially for a high-growth company. The right mix of permanent, temporary, and contractual employees is essential to business success. You need to choose between these hiring options depending on the specific use cases. The race to meet customer demands often tends to push HR to the backseat in growth-stage companies. It is up to you to ensure that focus is not lost on your hiring strategies if you want growth on a sustainable basis.

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