The recent economic crisis has seen the pressure on in-house legal teams to ‘do more for less’ intensify. Legal managers are having to debate the numerous ways in which this can be done, and getting the right mix between permanent and temporary members of staff is a key element of their role.
When hiring permanent staff long term budgets need to be in place. Additional benefits can often increase their ‘cost’ far above their cash package and, with so many redundancies being highlighted each week, management are cautious about the future cost implications of a permanent employee. In contrast temporary workers can be clearly budgeted for with ‘upfront’ costs, they are only used when a team is genuinely busy, (hence reducing any wasted man hours) and they are an effective way to reduce external legal spend. The fact that ‘temporary’ worker costs are often allocated to a separate HR, or centralised budget, also helps legal managers to balance the books.
Taking somebody on a trial temporary contract is one of the best ways to test whether they are the right fit for the team and company
Company-wide frozen headcounts often impose a blanket solution on a company that simply isn’t appropriate for some departments. Legal teams that deal with a heavy workflow or critical risk decisions have to be staffed at an appropriate level and sometimes only a temporary hire can be made.
Even when a permanent position is available there is a natural worry by some hiring managers about making a costly mistake. With so many candidates on the market, and people prepared to take roles for the sake of security, it has become even harder to identify the best individual. Taking somebody on a trial temporary contract is one of the best ways to test whether they are the right fit for the team and company. There is substantial evidence to suggest that employees that move from a temporary to a permanent contract with the same company are far less likely to move on in the next 12 months. Lower attrition rates translate into lower costs and benefit the team in a number of other ways,
There will always be a debate over the benefits of temporary v permanent workers and it is clear that the recession has simply added a few more factors to be considered when deciding which route is appropriate
