Choosing Between Temporary and Permanent Staffing

June 5, 2023 – When it comes to hiring employees for your business, you have two choices: temporary and permanent staffing. Both have their advantages and disadvantages, and knowing which one is right can be challenging. In a new report, executive search firm Atlantic Group explored the benefits and drawbacks between the two and which option may best suit your business.

Temporary staffing is the practice of hiring workers for a specified period, typically for short-term projects or to fill staffing gaps. Temporary employees are not permanent team members, and their employment generally ends once the project is completed or the staff shortage is resolved.

Advantages of Temporary Staffing

Flexibility is one of the key benefits of temporary staffing. “Temporary staff can be quickly hired to meet your business’s needs, and their employment can be terminated just as quickly once the project is over,” said the New York City-based search firm. “Temporary staffing can also be cost-effective. Since temporary staff are not permanent, they are not eligible for benefits such as health insurance, paid time off, or retirement plans. This can lead to significantly reduced expenses, particularly if you only require employment for a short period of time.”


A potential drawback of using temporary staffing is the limited level of commitment that the workers may exhibit. Since they are not permanent, they may not be as invested in your business. Another disadvantage of temporary staffing is the potential for high turnover rates. “Temporary employees may be more likely to leave for a permanent role, and in a market such as this, it may be difficult to secure a temporary employee for a long period of time,” said Atlantic Group.

Permanent Staffing

Permanent staffing refers to hiring employees for long-term, ongoing positions within your business. Permanent employees are hired as full-time members of the team and are eligible for benefits such as health insurance, paid time off, and retirement plans.


One of the main advantages of permanent staffing is the dedicated and loyal workforce it provides. “Hiring full-time team members fosters a sense of investment in your business and its success, which can result in higher productivity and greater teamwork among staff,” said the report. “Permanent staffing can also cut costs in the long term. While permanent employees are eligible for benefits, they are more likely to stay with your business for an extended period of time. This can reduce the expenses associated with constantly hiring and training new staff.”


One of the biggest challenges businesses face when hiring permanent employees is the lack of flexibility. When a full-time employee is hired, it can be difficult to release them if their position is no longer necessary or they’re not meeting expectations. This not only leads to strenuous decisions but can also result in higher costs associated with the layoff.

Related: Interim Leaders: Proven Experts at a Time of Crisis

“Another disadvantage of permanent staffing is the higher initial costs associated with hiring,” said the Atlantic Group report. “This is because they are entitled to benefits that can add up quickly and increase your business expenses. Moreover, hiring permanent staff may take longer and require more resources than hiring temporary staff.”

Answering the Growing Call for Interim Executive Talent
The trend toward executive-level interim services has only been growing in recent years. But now, as private equity firms grow savvier about their use of talent and prospects for the economy have dimmed, more companies are embracing short-term, temporary leadership. For recruiters like The Christopher Group (TCG), a leading HR executive search firm, this shift looks to hold significant promise.

“Over the last decade, private equity has raised trillions of dollars and they are tasked with making a return for their investors,” said Nat Schiffer, TCG’s recruiting services division president, managing director, and chief marketing officer. “The demands of those portfolio companies is to gain a return on their investment and their investment cycles are relatively short term, typically three to six years. So, the ability to provide different levels of service at different life stages of the company, whether it’s an interim contractor, or a fractional CHRO, so that they don’t under club or over club the role, becomes incredibly important.”

Ultimately, the choice between temporary and permanent staffing depends on each business’s unique circumstances and priorities. “Careful consideration should be given to ensure that the staffing option aligns with the company’s goals and objectives,” said Atlantic Group..

Atlantic Group, founded in 2006, is an industry leader in executive and professional search. Headquartered in New York City, and with offices in Philadelphia; Boston; Stamford, CT; Holmdel, NJ; Blue Bell, PA; Chicago; and London, the firm can penetrate networks and execute searches regionally, nationally and globally. Its divisions include: finance and accounting, information technology, quantitative finance and capital markets, healthcare, administrative and corporate services, real estate and construction, short and long-term temporary consulting services, and outsourced payroll services.

Founding Partners

Prior to starting Atlantic Group, John Ricco was an experienced public accountant from KPMG where he was a key strategic member of KPMG’s New Media Practice where he was responsible for leading several high IPO’s. He has a passion for the recruitment industry and believes that strong relationships are what drives success in both business and in life.

Rich Scardina is actively involved with the strategic vision of the firm as well as continuing to manage a full cycle recruitment desk focusing specifically on private equity and hedge fund back and middle office roles within the CFO and COO verticals. He started his career as an auditor in public accounting and then joined Donaldson, Lufkin & Jenrette where he helped oversee their private equity accounting and finance operations for eight years as a vice president.

Related: The Pros and Cons of Hiring Interim Executives

Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media

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