Temp-to-Perm - The Growing Trend

It is no secret that the Canadian labour force is preparing for a severe skilled-labour shortage, and the legal industry is no exception.  We have all read countless articles preparing us for this shortage; however, few have offered sound advice and a realistic plan of action focused on the legal industry.

One possible solution involves an influx of temporary-to-direct hire arrangements.  This year has revealed an increase in temporary-to-direct hire placements in Toronto law firms.  It is expected this trend will continue beyond 2006.  Many firms are noticing that “stellar” candidates are materializing through the temporary employee applicant pool.  The importance of flexible recruiting will enable timely placements for the difficult position to recruit for in your firm.

Temporary employee usage offers the flexibility to choose how long you wish to test candidates out before making a final decision as to whether or not to keep them.  The downside of using temporary employees is the unavoidable learning curve and the required adaptability to firm procedures, file locations and template formats.  To enable a fair assessment process, a minimum trial period of one week is recommended.

Clients are more favourable towards the temporary-to-direct hire process knowing there is no commitment to hire the temporary employee.  If the position is terminated, the temporary employee does not work out, or an internal candidate is more qualified, the temporary employee’s contract can be ended immediately.

By initially filling the opening with a temporary worker, clients continue to take advantage of staffing agencies’ core strength in recruiting qualified personnel.  Through use of temporary employees, clients can assess a potential employee’s fit within their firm before they commit to a permanent relationship.

Clients agree that there is nothing challenging about making a temporary-to-direct hire conversion.  From the candidate’s perspective, it is very positive for them to have a chance to demonstrate their ability to clients, especially if it has been a year or so since they have been in the workforce.  As a result, clients can assess potential employees’ skills while on the job.  Sometimes clients cannot guarantee whether positions will have a permanent outcome.  Using temporary employees allows clients to focus on what they need at the moment, without locking them into a permanent employment relationship prematurely.  Whether due to a negative economy, a cash flow issue, a questionable candidate/company fit, the flexibility with this arrangement offers employers the choice to terminate temporary contracts.

Another advantage to temp usage is that it provides clients with the luxury of knowing that previously trained temporary employees could in fact be rehired when a suitable position arises.  This advantage reduces the need for basic training and provides reassurance that the candidate does in fact resemble the firm’s culture.

Unfortunately, it may not be practical to use the temporary-to-direct hire option for every situation.  Some candidates may be unwilling to work as a contract employee.  If a temporary-to-direct hire option is not granted, the ideal candidate might retract interest.  Working a trial period in temp could entice permanent candidates in taking a risk for an improved opportunity.

 Finding the ideal person to best fit the job is of primary importance to clients.  Having the opportunity to test someone out prior to hiring will result in favourable placements.

 When clients have a temporary employee in a position and they are not happy, they sometimes will settle with that employee because they are comfortable with them.  It is important not to lower your standards, and continue to recruit. 

 It is key that the communication between the client, the agency and the temporary employee is open so everyone knows the rules and their expectations are realistic.  The best solution is to ensure the temporary employee understands how his/her immediate position could differ when converted to a permanent job.  Temporary-to-direct hire is a favourable option for clients; and by ensuring open and accurate communication, as well as a good understanding of the arrangement, will lead to an increase in successful hires.

Published in TLOMA Newsletter, December 2005

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