What are permanent employment benefits for employers?

There are many types of employment, from full-time and casual employment to freelancing. Each type has its advantages and disadvantages.

A permanent role provides benefits that other types of employment do not, primarily job security and long-term hiring. Not only do permanent contracts offer job security and progression opportunities, but they also benefit the employer. There are many advantages for companies when hiring permanent staff.

What is permanent employment?

Permanent employment describes the nature of an employment contract that has no end date. A permanent employee is usually afforded benefits not extended to those employed temporarily.

A permanent contract is only terminated when the employer or employee chooses to do so according to the prescribed statutory procedure, such as providing written notice. The relevant statutory provision in Australia is the National Employment Standards (NES).

What other types of employment can you hire for?

Hays is a recruitment expert, and we hire for all types of employment, from permanent employees to contract workers, freelancers and temporary part-time staff. We recruit for various jobs across a vast range of industries, such as IT, construction, finance and government. Although there is value in hiring permanent staff as it's beneficial for retention rates to offer a permanent job to existing employees, you may also need to hire accordingly based on your own business needs.

Benefits of permanent employment

Retaining top talent

When you hire to fill vacancies permanently, you're able to keep staff long-term. This allows employees to grow and focus on their career development. A permanent full-time employee can climb the ladder and progress into more senior roles. The ability to help permanent hires grow within a company cultivates loyalty, which is a key marker of a great place to work.

Reduced turnover

There's a strong correlation between valued permanent staff and low turnover rates. Retaining permanent employees long-term offers many benefits for employers:

• Cost Savings: Lower recruitment, training, onboarding expenses and administrative duties related to drawing up new employment contracts.
   
• Consistency: Maintains a stable, experienced workforce, enhancing productivity and quality.
   
• Employee Morale: Boosts morale and engagement, as employees feel secure and valued.
   
• Knowledge Retention: Preserves institutional knowledge and expertise within the organisation.
   
• Brand Reputation: Sustains strong, ongoing relationships with clients due to familiar and trusted staff.

Upskilling and progression

Upskilling and progression in permanent roles provide substantial advantages for employers, fostering a more capable and committed workforce. Unlike contract workers, permanent employees are more likely to benefit from training and promotional opportunities, leading to a range of organisational benefits.

• Increased competency: Permanent employees gain advanced skills through continuous training, enhancing overall workforce capability.
   
• Loyalty and retention: Offering promotional opportunities motivates permanent staff to stay longer, reducing reliance on contract workers.
   
• Organisational growth: A skilled workforce drives innovation and efficiency, contributing to the company's growth and competitiveness.
   
• Leadership development: Long-term employees are prime candidates for leadership roles, ensuring a strong internal pipeline for managerial positions.

Stronger relationships

Stronger relationships are a key benefit of a permanent role, enhancing collaboration and trust within the company.

• Consistent interaction: Full-time employment allows employees to interact regularly, building deeper, more reliable working relationships.
   
• Customer trust: Long-term employees develop lasting relationships with clients, fostering trust and loyalty.
   
• Knowledge transfer: Permanent employees share insights and knowledge more effectively, improving team performance.

Team culture and morale

A strong team culture and high morale are significant benefits of permanent employment, driving overall productivity and job satisfaction.

• Job security: Permanent roles provide stability, boosting employee morale and engagement.
   
• Work-life balance: Benefits like annual leave, sick leave, and parental leave contribute to a supportive and balanced work environment.
   
• Cohesive team: Long-term employees are more likely to invest in team culture, fostering a collaborative and positive workplace atmosphere.

Hiring for the future

You always want to hire with the future of your business in mind. With long-term planning and a stable workforce, you can engage in more strategic planning. Strive to build a team that will eventually step into senior leadership positions.

Employers can identify and develop future leaders within an existing workforce instead of hiring externally. Developing leaders within your company ensures continuity and stability, holistically strengthening your workplace.

What are my next steps?

If you are looking to hire full-time employees, consider seeking assistance from our expert recruiters at Hays. We have helped numerous organisations hire in-demand talent. Recruiters can help offer permanent jobs to many proficient workers to bolster an organisation's strength and value.

You can register for a vacancy to alert our team or find your  nearest Hays office today.