Different types of employment – which one is the best for you?
Published on: 12 Oct 2018
The job market looks different than it looked ten or twenty years ago. The constant change in technology, different approaches to industrial processes and globalisation couldn't have any impact on working conditions. That's why the whole employment system had to change too. Some time ago, permanent contracts were a standard. Today, there are a few other options such as temporary job, temp to perm and b2b contracts. All of them are popular in the engineering environment. Which option would be the best for you – as an employer and as an employee? We will show you some pros and cons of all options to help you to decide on employment suited to your needs.
Permanent recruitment is a service that we conduct for many clients. There are a lot of companies, who hire people only on this type of contract. Manufacturing permanent employment is a standard in a lot of factories, but it's used also in office work. It gives stability and job security for employees. A permanent contract provides them with rights, which are unavailable in any other type of employment. Holiday pay and additional benefits are guaranteed mainly for permanent employees. However, this type of employment is the least flexible of all options. An employer can't make an employee redundant without notice, which can be problematic in some cases. A long notice period can be a problem for an employee too when they want to change work.
Temp to perm employment
This type of employment is a bridge between the permanent and the temporary employment. An employee is hired for a fixed amount of time and then they get a permanent contract. The rights of an employee are similar like in the case of a permanent contract. During the first temporary stage, a contract is signed between an employee and a job agency. It's an ideal solution for the employer, who would like to save money on payroll and test the employee before signing a permanent contract. The same situation is with the employee, who can check if a particular job position and the employer are good for them.
Engineering temporary employment is a popular option when it comes to projects, which are planned only for some period of time. In this time, the company needs more employees and frequently asks job agencies for temporary recruitment. In fact, the temporary employment can be also ongoing, because sometimes the employer doesn't know how long the employee would be needed. Lack of job security can be a disadvantage for both parties: an employee can be stressed because of it and unwilling to do their best because they know that the contract would finish. On the other hand, a temporary contract can be a motivation for some people to work hard in order to get a permanent contract in the future. Moreover, this contract is easy to break, which can be beneficial for both parties (dependently on the situation).
Contracts and self-employed
Employment of contractors and people who run their own businesses is the most convenient option for many companies. That's why many clients ask us for contract recruitment. In this type of employment, an employer and an employee sign a business contract, in which there is information about the responsibilities of both parties, salary, and other important issues. All taxes are paid by an employee, an employer doesn't have to think about it. For an employee, this contract gives a better chance of negotiating a salary. Moreover, these contracts give much flexibility for an employer and an employee.
However, employees have fewer rights (e.g. lack of holiday pay) and benefits than other people on permanent contracts.