Four reasons why merging contingent & permanent recruitment makes good business sense

Australian employers are increasingly accessing the value of streamlined recruitment processes, where the hiring of both permanent and contingent workers are merged. This blended model has proven to be an efficient and effective solution, achieving equally impressive results in key performance measures across acquisition of permanent and contingent workers.

Here are five benefits for aligning your contingent and perm recruitment, for better business outcomes:

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1. Improve Quality and Fit of Hires

KEEPING A HIGH STANDARD – Contractors are no longer simply filling talent gaps. They are being hired to work on business-critical projects. So, the need to undergo the same level of screening as permanent hires is a must. A merged recruitment process will ensure this and maintain quality and fit of hire

CONSISTENCY COUNTS – Having the same team managing both contingent and perm hiring, means there’s a consistent brand message across all candidate experiences. A team that lives and breathes the company culture, vision and value proposition, keeps the ‘employer brand’ equity high throughout all recruitment activity

2. Cost Benefit

A NEW APPROACH – Ultimately employers will see a better ROI on their approach to engagement and hiring of talent if they start to think beyond the traditional ‘permanent’ component of the workforce

STREAMLINED PROCESSES – Combining perm and contingent recruitment reduces costs by streamlining both the process and suppliers

ONE TEAM – A blended model offers the opportunity to leverage the same team and shared services infrastructure (and then most often, talent is managed under separate specialist providers: RPO, MSP)

LONG TERM SOLUTION – Temporary workers are becoming an increasingly permanent solution. So, differentiating the hiring practices for permanent hires and contractors makes less commercial sense

3. Better Resource Leverage

  • candidates are becoming more and more flexible with taking on contingent roles
  • and from time to time, some contractors also seek to move in the other direction & go permanent
  • keeping perm and contingent recruitment totally separate prevents the potential offered from a merged contingent-and-permanent talent pool
  • centralised recruitment reporting gives employers a clearer picture of their contractor population

4. Aligned to the Business Strategy

Line managers that hire ‘on the fly’ to fill a last minute need or project requirement aren’t achieving the best possible outcome from their contractor hiring practices. They often:

  • hire in haste
  • focus less on spend
  • are less likely to focus on the due-diligence of the hire from a scope, quality and benchmarking perspective
  • disregard the ‘best fit’ of the contractor for the business

Managing contingent workers centrally, say via an MSP, reduces the likelihood of employers hiring them in a random or haphazard fashion. It also means contract hires will be within the agreed business benchmarks of quality, contract scope, price and deliverables. No matter the level or breadth of the project.


Do you have experience with the working with a contingent workforce? Any stories to tell? We’d love to hear from you in the comments section below.