Perm, Temp or Fixed Term Contract?
With a lot of uncertainty in the market at the moment, it’s likely that recruiting and offering a permanent job to someone is going to be unrealistic. Temporary contracts may look like a good option at the moment, but why not look at something in between – fixed term contracts (or FTCs). Here are a few reasons you might want to think about them and why they’re usually more beneficial to you as a business than temporary contracts.
Why employ on a fixed term contract?
- A FTC offers you the flexibility as an employer while still gaining commitment from a candidate, giving them security and the certainty of an income for a minimum or fixed period of time.
- FTCs are better for candidates too, making them more likely to seek them out. They offer candidates more stability for a longer period than a temporary contract. Candidates are more likely to give you full commitment instead of always keeping one eye on the job market.
- A temporary contract may seem cheaper initially, but you have to pay the usual National Insurance, holiday AND sickness directly into their weekly pay. In addition, on top of that, you’ll also be paying a margin on top to the agency, making them more expensive than FTCs in the long run.
- Although IR35 has now been delayed, employing candidates on a FTC means you wouldn’t have to worry about it at all. One less thing on your mind.
- You can always adjust the length – just because a candidate is employed on a FTC, doesn’t mean you can’t extend the contract, or even offer them a permanent role. It’s the best of both worlds!
Of course fixed term contracts aren’t going to be the right choice in every situation, but if you’d like to discuss contracts in more detail with us, give us a call and we can talk you through it!
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