The Pros and Cons of Permanent Staffing in Canada: What You Need to Know

The choice of an appropriate staffing strategy can make or break an organization in terms of workforce success. Permanent staffing has been a boon to quite a few companies in Canada but holds equal disadvantages. This extensive article would discuss the pros and cons of permanent staffing in Canada to provide you with necessary guidance in making better decisions for your organization.

Permanent Staffing-An Overview:

Permanent staff means hiring people on full-time basis when no date for the end of their employment has been set. Those employees are part of an organization and usually get some benefits such as health insurance, retirement plans, and paid time off.

Advantages of Permanent Staffing in Canada

Employee Job Security

Job security is one of the greatest advantages permanent staffing offers. Staff will feel more secure and valued, and hence job satisfaction and loyalty improve. With such stability, turnover rates and costs on recruitment and training for new staff members may minimize.

Permanent employees are more likely to be integrated into a company culture. Gradually, they develop deep understandings of the values, mission, and goals that require the entire organization. This assimilation eventually reveals better teamwork, higher morale, and a more coordinated working space.

Improved Skill Acquisition

Permanent employees are able to develop and grow within the organization. The companies invest in training and development programs knowing that the results of such training will benefit them in the long run by way of increased productivity, innovation, and so much more.

Permanent staffing fosters deeper relationships among employees and employers. Such relationships often lead to better communication, higher trust, and a more collaborative workplace. Employees will go beyond their call of duty to please a company they feel connected to.

Better Customer Service

With permanent workers, a company will be in a position to administer more consistent and reliable customer service. They are better positioned to support their clients because they know the company’s products, services, and them.

The Disadvantages of Employing Permanent Staff in Canada

Higher Operating Costs

The major disadvantage of permanent staffing is the increased costs involved. Benefits such as health insurance, retirement contributions, and paid leave are mandatory. The long-term commitment to salaries also is a financial burden, particularly to small businesses.

Less Flexible

Permanent staffing may limit the flexibility of a firm to control its workforce. It is difficult to adjust the level of staffing as a quick response to changes in demand for its business or general economic conditions. Such inflexibility can lead to inefficiency and high costs of operations.

Risk of Complacency

Complacency may creep in because the employees are sure of a permanent job. This can reduce their motivation and productivity levels. Without the renewal pressure of contracts, the employees might not have enough reasons to continue performing at an optimal level.

Few New Ideas

Permanent employees are more likely to develop a fixed mindset over time, making them less flexible and open to change. This ultimately hinders innovation and can limit the entry of new ideas often brought into an organization by contract or temporary workers.

Problems in Hiring

Finding the right candidates for permanent positions can be a long and arduous process. It takes a lot of time and resources to identify, interview, and select the best candidates. Furthermore, permanent roles require commitment, which can be a deterrent for some highly skilled candidates who prefer contract work.

Is Permanent Staffing Right for Your Business?

Permanent staffing is appropriate for a business depending on its size, industry, and long-term goals. You need to consider the following questions:

Do you have business needs that require long-term stability? 

Or do you have a business that would be best run with a more flexible form of staffing?

Can you afford the costs? Determine if your financial capabilities can afford to support the higher costs permanent staffing will incur.

What is your company culture?

 Find out if your company culture supports permanent employees’ benefits.

Are you ready for recruitment?

Check if you have resources and time to spend for finding the best permanent employee.

Permanent Staffing in Canada: What is Right

Permanent staffing will benefit your business organization as much as it ensures great loyalty among employees, better skill acquisition and development, and customer service. However, such an approach has high cost implications and reduced flexibilities. Thus, by identifying one’s business needs as well as capabilities, determining the appropriateness of this option is feasible.

If you would like to know how permanent staffing in Canada can be implemented or require discussions on your specific recruitment needs, contact us today and let us help you achieve a successful and sustainable workforce.

FAQ: The Pros and Cons of Permanent Staffing in Canada