Are Permanent Job Placements a Financial Risk or a Company Investment?
With the uncertainty of the current economic climate and the prospect of Brexit looming, many companies will be asking themselves whether taking on new permanent employees is worth the risk. Are contractors, by the nature of the short-term responsibility towards them, the better option?
A new study of professional recruitment trends suggests that in fact, employers are willing to take a chance on permanent staff members. The study has found that UK employment is seeing an increase in permanent job positions and a decrease in vacancies for contractors. While the number of vacancies for professionals has seen a steady increase across the board (0.3% per year), permanent roles available for financial services professionals has seen the biggest rise, with a huge annual increase of 16%.[i] So what might have caused this leap in permanent vacancies?
The financial future is not so bleak
While some MDs and CEOs are understandably concerned about the uncertainty surrounding Brexit, the general opinion currently seems to be that it will not have a devastating impact on most sectors. The financial services sector in particular doesn’t appear to be over-anxious and companies are even identifying new opportunities for the future; opportunities that will require the support of a skilled and forward-thinking team.
Efficiency, dedication and loyalty
Full time employees get to understand the ethos of the company and the issues that are vital to the business. They are able to share this ethos with clients and customers.
Long term employees learn systems and processes, making their day-to-day work more efficient, saving the company money. There is the opportunity to motivate full time staff, with bonuses and commissions for bringing in business. Permanent staff are likely to be dedicated to the company, as they know that their continued employment relies on company doing well.
It is worth investing in training schemes for permanent members of staff, knowing that money and time invested in professional development will benefit the company long term. Staff members with training and expertise in the areas specific to your company requirements, can be promoted into positions of increasing responsibility. This reduces the need to recruit from outside the team for high level positions. A healthy upward mobility within the company is also further motivation for staff to be dedicated and to continually strive to improve their performance.
Fostering relationships with clients
Permanent staff can help your clients to feel secure, as they correspond regularly with the same individual or individuals each time they are in contact. Permanent staff can build business relationships with current and new clients. The time taken to do this can increase customer loyalty to the company. The knowledge experienced employees have about the company can also reassure clients, as well as making correspondence more seamless; a survey suggested that 84% of customers experience frustration if their agent does not have the information that they require. [ii]
No short cuts
Permanent placements will take a long-term view of the company and its direction. They are prone to put plans in place that are likely to have a long-term impact. Contractors may be more focused on reaping short term dividends – but this is not always the best investment for the company. Companies need individuals considering the 5, 10 and 20-year plan of the business; as well as seeking to be productive in the short term.
What do candidates want?
Candidates know that they can expect a higher hourly rate from short term contract work. However, there is job security in a permanent role, as well as benefits, holidays and the stability of staying in one place for an extended period. To really attract the best candidates, companies must ensure that they are generous in these benefits. While this may seem like an additional expense, it will pay off in terms of the productivity that an excellent permanent member of your team can make to the profitability of your company.
Finding the best
Recruiting for permanent job placements gives you the pick of a very talented candidate pool of experienced industry professionals looking to find full time work.
The increase that this country has seen in full time positions is a benefit to the financial services industry as a whole. It is likely to produce a more dedicated, professional and experienced service moving forwards. However, it is vital to ensure that these placements are the right ones. One fear for a company when recruiting permanent staff is, “what if they’re not right for us?” A specialist recruitment agency such as Aston Charles selects from a large number of experienced, qualified candidates. Our premium service, utilising the most up-to-date recruitment technology as well as personal interactions with candidates, gives your company the confidence that we will find an employee that is the right fit for your company. This gives you the benefit of knowing that all your full-time employees are forward thinking; committed to seeing the development of your company through 2018 and beyond.
[i]Marianne Calnan. 2018. Permanent job placements increase 10 per cent as contractor numbers fall . [ONLINE] Available at: https://www.peoplemanagement.co.uk/news/articles/job-placements-increase-contractors-fall. [Accessed 30 March 2018].
[ii]Vala Afshar. 2018. 50 Important Customer Experience Stats for Business Leaders | HuffPost. [ONLINE] Available at: https://www.huffingtonpost.com/vala-afshar/50-important-customer-exp_b_8295772.html. [Accessed 30 March 2018].