At TalentYard we offer a variety of options for your hiring needs. You may need a receptionist for just a few weeks or you may be considering hiring a PA on a trial basis first before making any commitment.

Here is a brief summary of all the different ways you can hire a candidate:

 

Permanent Contract

This is the most common type of employment for most employers. As the name suggests, it is an indefinite and ideally long term commitment from both parties. It includes a contract with a notice period of usually 4 weeks but this may vary (usually maximum 3 months). The new hire will by employed directly by you, the Employer, and will receive a permanent salary as well as access to any company benefits and minimum statutory pension.

Pros

  • Long term investment – the new hire will be an integral part of the company and really feel committed to their role
  • Notice period – you will have the peace of mind that should anything happen and your new hire decides to leave, you will have a reasonable amount of time to replace him/her.
  • Team environment – a business with a majority of permanent candidates will more likely have a better team environment where each employee feels part of the family and follows the goals and values of the organisation.
  • You still have the option of a “probation period” (usually 3 months, sometimes up to 6 months) which allows you to determine that the candidate is suitable and going to work out long term.

Cons

  • Bigger commitment – a permanent hire is a long term investment and with a bigger risk compared to temporary or fixed term contracts.
  • Legislation – as an employer you will have to follow and keep up to date with current and new legislations around employment.
  • Legal risks associated to terminating a permanent contract

Agency fees – our fees are a percentage of the annual salary of the candidate. We also offer a 3 month refund/replacement guarantee with a scaled refund structure which allows you peace of mind when hiring on the permanent side, whilst still maintaining a strong level of commitment from the candidate.

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Fixed Term Contract

This type of contract is usually useful for maternity/paternity covers, long term sickness cover, or also if the employer requires assistance on a specific project with an end date. The legal implications are almost the same as for a permanent contract but this contract is for a specific period of time only. The fixed term contractor has the same rights as a permanent employee (employment contract, PAYE, equal benefits, notice period, etc.).

Pros

  • Guaranteed cover for a specific amount of time and with the security of a notice period from both parties
  • Commitment from the fixed term contractor compared to a temporary worker who may feel less secure in the role/contract
  • Option to offer the contractor a permanent contract at the end of the fixed term contract, without incurring additional fees than would have been paid on a straight permanent basis.

Cons

  • Slightly less straightforward legislation compared to a permanent contract particularly if the employer decides to offer a 2nd or subsequent fixed term contract.
  • Legal risks associated to terminating a fixed term contract
  • Potential to miss out on great talent looking for long term job security rather than fixed term contracts

Agency fees – our fees are based on the pro-rated salary of the contract up to 12 months. If you then decide to take that candidate on permanently, we only charge for the remainder of the contract up to a maximum of 12 months.

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Temporary Contract (or Temporary Assignment)

A great option for anyone looking to hire someone for a specific period of time, or without the risk of commitment. Suits holiday covers, sickness covers, short assignment, sporadic and part-time assignments, as well as startups with limited payroll structure in place.

Pros

  • Little commitment – this is a great way to trial someone or a position particularly if the role or hours of work are unclear.
  • Less admin/resources – the employment agency would be in charge of payroll, pensions and keeping up to date with current legislations.
  • Flexibility – the employer can trial as many temporary candidates as he/she wishes
  • Last minute cover – practical if a member of staff is absent for a few days and the employer urgently requires assistance

Cons

  • Can be a more expensive option as the employer will be invoiced based on the hours worked.
  • After 12 weeks the temporary worker will receive the same pay rights as any other permanent employee in a similar role
  • Reliability – with the absence of a notice period it might be tricky to guarantee temporary cover for the entirety of an assignment. It will be the Agency’s role to make sure the temporary worker will commit to the assignment but not 100% guaranteed.

Agency fees – our fees are included in the total hourly rate quoted and are a percentage on top of the temporary worker’s hourly rate. Unlike most agencies the national insurance cost is calculated separately and not included in our agency fees.

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Temporary to Permanent Contract

This is becoming a very popular type of employment particularly with smaller businesses who would like to trial someone before offering them a permanent contract.

Pros

  • This offers the same benefits as a Temp Contract, with the ability to trial as many candidates as you like before committing to a permanent candidate

Cons

  • The candidate may not feel secure and may also continue to interview elsewhere until the commitment has been made.

Agency fees – our fees will be included in the total hourly rate quoted at first. Once the temporary worker has been offered a permanent contract we would then charge the client a reduced transfer fee based on how long the temporary worker has temped for the client. There is also another option which is called the “Extended Period of Hire” which basically is an agreement to continue the temporary assignment for an additional period of time to cover the transfer fee.

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We hope this will help you make the best decision possible for your business.

Please do not hesitate to call us on 0203 866 8931 if you need any guidance- we are here to help!