Contract Vs. Permanent

Contract Resource Permanent Resource


 Advantage

 ♠  Resources available for short periods.

 ♠  Quick Turn around time.

 ♠  Need not take responsibility of PF,      Medical etc.

 ♠  Replacement provided on short notice.

 ♠  Huge cost saving for projects      requirements <12 months.

 ♠  Candidates skills can be assessed in      real time and if desired can be enrolled      to permanence on meeting set      performance criteria. (This eliminates      selection of wrong candidature      through written tests and interviews)

 ♠  Successful model when recruiting      candidates where experience level is      less than 5 years.


 Disadvantage

 ♠  Not profitable on long term as costs      involved will be slightly higher.

 ♠  Availability of resources who are      highly skilled (5+yrs exp) and with      managerial capabilities is scarce or      Costs are high.

 Advantage

 ♠  Attrition is lesser.

 ♠  Long-term advantage in terms of cost      saving.

 ♠  Highly skilled resources with      managerial resources available at      much lesser costs.

 ♠  Candidates are more committed.

 ♠  Resources are more responsible and      hence companies can have higher      sense of security.


 Disadvantage

 ♠  Selection process is extensive and      involves high costs and effort.

 ♠  All capabilities are not measured      during selection. (Could land up      selecting the wrong candidate).

 ♠  Company is responsible for all fringe      benefits, PF, insurance, medical and      other HR activities.

 ♠  A loss making proposition when bench      period between projects are too long.