Finding suitable job applicants, interviewing them, obtaining references, agreeing salaries and other benefits can be time consuming and expensive for an employer. Even after an individual has been appointed, this new member of staff may require a lengthy induction and training programme before they become a productive member of the company’s workforce. Human Resources departments face an increasing burden, not just in the recruitment area; like other sections of an organisation they, too, often find themselves stretched.
In a dynamic business, the retraining of existing staff should always be considered as an alternative to recruiting new employees. In a company whose range of products or services is continually changing, using existing staff in new roles often makes good business sense. Staff development and training can work in favour of both the employee and the employer. Acquiring new skills at the company’s expense usually motivates individuals, adds interest to their working life and helps them to progress up the career ladder. In return, the company gains a more broadly skilled, contented workforce, often at a lower cost than if it had been necessary to recruit costly specialist staff.
Members of staff recruited on permanent contracts have many rights under current employment protection legislation. Therefore, on occasions, employers may wish to employ some staff on short-term contracts.
Companies whose sales volumes vary seasonally (sellers of ice cream or Christmas decorations, for example) often make significant use of temporary employees on limited term contracts. The other area where short-term contracts are useful is for one-off projects. Specialist contractors can be brought in on an ad hoc basis, only when they are needed, at different stages throughout the project lifecycle. Although employing staff on short-term contracts is not necessarily a low cost option, it does offer the employer considerable flexibility when trying to balance all their personnel requirements.
The whole recruitment process can be time consuming and costly to an employer;
As an alternative to the recruitment process, staff development and training can benefit both employer and employee;
Employing staff on short-term contracts is appropriate in some circumstances.