Permanent vs Contract HR hires

Permanent vs Contract HR Hires – Which is Right for Your Business?

Human Resources and HR Recruitment play critical roles in the success of any business. The Permanent vs Contract HR Hires question is one that must be taken seriously, and both options must be considered, as both have their merits and drawbacks. This article will delve into the Permanent vs Contract HR Hires differences and help you determine the best choice for your organisation.

Understanding Permanent HR Hires

Permanent HR hires are full-time employees who work directly for your organisation. They typically have access to company benefits, such as health insurance, paid time off, and retirement plans.

Benefits of Permanent HR Hires

Continuity and Stability

Having a permanent HR team ensures that your HR policies and practices are consistently implemented, fostering stability within the organisation.

Long-term commitment

Permanent employees are more likely to stay with the company for longer periods, contributing to organisational growth and development.

Investment in Employee Development

Permanent HR hires can participate in ongoing training and development programs, enhancing their skills and benefiting the company.

Drawbacks of Permanent HR Hires


Permanent staff members can increase a business’s overheads and require an investment in further internal resources. Such as administering incentive and benefits schemes, NI contributions, and providing career development and enhancement opportunities. This can require substantial time and resources.

Lack of Flexibility

Permanent hires may be less adaptable to changing business needs and may require more time and resources for training and development.

Understanding Contract HR Hires

Contract HR hires are temporary professionals employed for a specific duration or project. They usually work as independent contractors or through staffing agencies.

Benefits of Contract HR Hires

Cost Savings

Contract hires typically do not receive benefits and are only paid for the work that they actually carry out.


Contract HR professionals can be brought on board as needed, providing flexibility to address short-term or project-based needs.

Access to Specialised Expertise

Contract hires often have specialised skills that can be leveraged for specific projects or initiatives.

Drawbacks of Contract HR Hires


Contract professionals typically command a higher pay rate than permanent staff. This is partly due to their specific expertise and also because they are generally not paid for holidays, and also need to make provisions for gaps between contract assignments.

Lack of Continuity

Contract hires may not be as invested in the company culture, leading to potential disruptions in consistency and continuity.

Short-term Focus

Contract HR professionals may be more focused on their specific project or contract, limiting their long-term impact on the organisation.

Comparing Permanent and Contract HR Hires

Cost Comparison

Permanent HR hires generally come with a higher overall cost due to salaries, benefits, ongoing  management and taxes. Contract HR hires, however, usually cost less overall but may charge higher day rates.


Contract HR hires offer greater flexibility, as they can be engaged on an as-needed basis. Permanent HR hires, on the other hand, may require more time and resources to adapt to changing business needs.


While permanent HR hires can be trained and developed over time, contract HR professionals often bring specialised expertise that can be beneficial for specific projects or initiatives.

Company Culture and Employee Engagement

Permanent HR hires are more likely to be invested in the company culture and focused on long-term employee engagement. Contract HR hires, on the other hand, might not have the same level of commitment to the organisation’s culture and values.

How to Choose the Right HR Hire for Your Business

Assess Your Needs

Identify the specific HR needs of your organisation. Consider whether you require generalist HR support, specialised expertise, or a combination of both.

Budget Considerations

Determine the budget you have available for HR hires. Keep in mind the potential cost savings of contract hires versus the long-term investment in permanent hires.


Consider the duration of your HR needs. If you require support for a short-term project or specific initiative, a contract hire might be the most suitable option. For long-term, ongoing HR support, a permanent hire could be the better choice.

Employee Development

Evaluate your organisation’s commitment to employee development. Permanent HR hires are more likely to benefit from and contribute to a culture of ongoing learning and growth.

Legal and Compliance Factors

Consider any legal or compliance requirements related to HR hiring. Permanent hires may be subject to different employment laws and regulations compared to contract hires.


Choosing between permanent and contract HR hires depends on your organisation’s specific needs, budget, and long-term goals. By carefully considering the factors discussed in this article, you can make an informed decision that best supports your business.


What is the main difference between permanent and contract HR hires?

The main difference is the employment status. Permanent HR hires are employed on either a full or part time basis with ongoing commitments to the organisation, while contract HR hires are temporary professionals engaged for specific durations or projects.

Are contract HR hires always more cost-effective than permanent HR hires?

Not necessarily. While contract hires often have lower costs due to the absence of benefits, they may charge higher pay rates rates. It’s essential to evaluate the overall cost implications before making a decision.

Can contract HR hires become permanent employees?

Yes, contract HR professionals may transition to permanent roles if both parties agree, and the organisation’s needs warrant a long-term commitment.

How can I determine if my organisation needs permanent or contract HR support?

Assess your organisation’s specific HR needs, budget, timeframe, and commitment to employee development. These factors will help guide your decision-making process.

Is it possible to have a mix of permanent and contract HR hires?

Yes, many organisations utilise a combination of permanent and contract HR professionals to meet their diverse needs, leveraging the strengths of both types of hires.

Benefits of Partnering with a Specialist HR Recruitment Agency

Access to a Vast Network of Professionals

A specialist HR recruitment agency has an extensive network of professionals in the human resources field. This network allows them to identify top talent with the right expertise, qualifications, and experience for high-level positions within your organisation.

Industry-Specific Knowledge and Expertise

HR recruitment agencies specialising in your industry have a deep understanding of the specific requirements and challenges of top-level HR roles. This expertise enables them to identify candidates with the ideal skill set and experience to excel in these positions.

Streamlined Recruitment Process

Working with a specialist HR recruitment agency can save your organisation time and resources by streamlining the entire recruitment process. The agency takes care of tasks such as job posting, candidate sourcing, screening, and initial interviews, allowing your HR team to focus on other essential duties.

Tailored Recruitment Strategies

A specialist HR recruitment agency develops customised recruitment strategies that align with your organisation’s needs and goals. They take into account factors such as your company culture, values, and objectives to ensure that the candidates they present are an ideal fit for your organisation.

Confidentiality and Discretion

Top-level HR roles often require a high degree of confidentiality and discretion during the recruitment process. A specialist HR recruitment agency is experienced in handling such sensitive information and can ensure that the process is conducted with the utmost professionalism and confidentiality.

Reduced Time-to-Hire

Partnering with a specialist HR recruitment consultant or agency can significantly reduce the time it takes to fill top-level HR positions. By leveraging their network, industry expertise, and recruitment strategies, they can quickly identify, screen, and present the best candidates for your organisation.

Enhanced Quality of Hire

A specialist HR recruiter’s primary goal is to identify the highest quality candidates for your organisation. Their expertise and tailored approach ensure that the candidates they present meet the specific requirements of top-level HR roles, leading to a better overall quality of hire.

Long-Term Partnership and Support

Establishing a long-term partnership with a specialist HR recruitment agency can be beneficial for your organisation’s ongoing talent acquisition needs. The agency can provide valuable insights, support, and assistance for future recruitment efforts, ensuring a consistent and effective approach to attracting and retaining top HR talent.

Why Choose PEEQ HR Recruitment Agency?

The average fill rate amongst HR Recruitment Agencies is 46%, but at PEEQ our average fill rate sits above 90%, So you are twice as likely to make a hire if you choose PEEQ

This is due to two reasons:

Firstly, we only partner with our clients on an exclusive basis, so we ‘own the responsibility’

Secondly, we don’t employ recruiters. Instead, we work with trusted and proven freelance HR recruiters, to hire for our clients.

We give them the tools and infrastructure to be successful, and the rest is down to their magic and experience. Our Associates are not employed by us and only get paid for making a successful hire.

This makes them incredibly tenacious and committed to finding the best talent, which is why our fill rate sits above 90%, compared to the industry average of 46%.

More reasons to work with PEEQ

Psychometric insight reports

Obtain a unique insight into your candidates’ Cultural Fit, Strengths, Decision Making and Resilience through our accredited assessments.

Post-hire executive coaching

Set your hire up for success with a tailored coaching programme that helps them achieve their full potential personally and professionally.

Up to 6 Month Placement Guarantees

Confidently make your hire under our 2, 3 or 6 Month Placement Guarantee; safe in the knowledge that we’ll offer you a free replacement if they leave within our pre-agreed time period.

BeTalent Accredited Approach

We are proud to offer the BeTalent Accredited approach that enables us to deliver scientific candidate assessment, in accordance with the British Psychological Society standards.

This solution is for you if you want:

  • An objective way to determine who is the best fit for your role
  • A comprehensive understanding into your new hire before they start
  • Peace of mind that you’ve made the right hiring decision.

Get in Touch with PEEQ HR Recruitment

We are here to help you. If you have any questions, queries or would like to discuss a potential hire, a job application, or require clarification on anything detailed on our website, then we would love to hear from you.

Please feel free to call, email or complete the form provided and we will assist you.

Share This Article

HR Recruitment Agency London, PEEQ, HR Recruitment Candidate Experience, Talent Acquisition, HR Recruiter, Diversity and Inclusion, HR in business success, HR in Crisis Management, Engaging Passive Candidates, HR Recruitment Agencies, hiring HR roles, Collaborative Dynamics in HR Departments, HR Recruitment Marketing Strategies London, HR Recruitment Interview Techniques, Behavioural Interview technique, Advancing as an HR Executive in London, Outsourcing HR recruitment services in London

PEEQ HR Recruitment Agency

Scroll to Top