Permanent vs Contract: Weighing Up the Pros and Cons of Permanent Placements

​The 3rd blog in our series Permanent vs Contract is the Pros and Cons of Permanent placements. You can follow the links to the Pros and Cons of Contracting and  How to get paid as a contractor to catch up on the full series.

We see many companies wanting to build their Cloud ERP maturity by bringing their knowledge and IP in house via permanent employees. So, as a Cloud ERP professional, have you considered all of these points before signing on the dotted line of a permanent contract or shutting down discussions of permanent roles.

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Pros:

Job security: 

Permanent roles provide a higher level of job security compared to temporary or contract roles. Fair Work Australia has strict guidelines for employers around notice periods or redundancy pay in case of termination. 

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Benefits: 

Knowing how much you’ll get paid and the benefits, such as annual leave, personal leave and long service leave can be more important at different stages of your career. Such as wanting to buy a house, plan an extended break or having children. Being a permanent employee gives you more ability to plan and provides additional benefits such as leave loading and paid parental leave. 

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Career progression:

Permanent employees are often seen as longer-term assets, therefore there may be more opportunities for career advancement, additional training and development to help you enhance your skillset and knowledge.

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Inclusion: 

Permanent employees can make and build long lasting friendships, mentorships and networks within a company. Being part of something bigger and long lasting can be a powerful feeling. 

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Cons:

Limited variety: 

Employees in permanent roles may have been brought on for a specific area or project. There may not be as many opportunities to work on different projects or different technologies, leading to a lack of variety in their work.

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Less money: 

Being a permanent employee, often your take home wage is lower than a contractors. 

Employer expectations: 

Employers may have higher expectations of permanent employees, including being more accountable for their work and contributing to the overall success of the organisation.

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So what do you think? Do you agree with these views? Any others to add? Comment via our LinkedIn page here.