When do managers hesitate on a Temp-to-Perm Assignment conversion? | DCR Workforce Blog

When do managers hesitate on a Temp-to-Perm Assignment conversion?

As I sit down to write this, the buzz about Brangelina planning to tie the knot seems to be spreading across the Globe! It has naturally resulted in turning my attention to the nature of relationships and by extension, had me wondering about why some temp-to-hire or temp-to-perm relationships at the workplace obstinately refuse to progress beyond the temp status!

Companies hire temps with a distinct plan to turn them perm – and reap the benefits, while avoiding any fitment errors. Temp to perm helps to limit turnover costs and issues like team morale and productivity. Managers save on recruitment costs, time spent on legal wrangles and severance costs. However, they must ensure that their staffing contract with the agency allows for a flexible conversion process, with reasonable fees and that the agency’s screening process matches their own, on all important aspects.

But some of the managers, though not all, open temp to perm positions – but never convert a temp to a perm. If this was because of any performance issues – we would be totally unjustified in finding in it any issue for discussion. All permanent positions also carry a probation time, during which the hire may be let go if the performance does not meet expectations. For such work-related reasons, temp to hire is obviously structured and ideally suited to take care of such issues.

When temp-to-perm conversion refuses to materialize:

We are considering in this post, certain business considerations and strategic concerns which make it difficult for managers to keep their commitment on temp to perm conversion, even though the performance of the temp was above/up to expectations.

  • It could be that the conversion creates a financial commitment burden which the manager (or his department) is unwilling to shoulder.
  • The manager may be concerned that the higher cost of a perm would deplete the program’s budgeted funds, by allowing the costlier conversion from temp to perm. Though it may appear as though the hourly rate paid to a temp is higher than a perm’s, the additional cost of benefits – like health/disability insurance, pension plan, paid leave and vacation to name some standard benefits – take a perm’s cost to the company to much higher levels.
  • This cost could also be augmented by the fees payable to the agency that provided the temp services.
  • The manager may also go back on the matter of conversion when there is a sudden realization that there is no long term requirement for the work delivered by the temp or that the perm’s cost gets charged to the particular cost center for the manager’s own program and budget whereas the temp’s may have reflected in a different cost center.

This is not an attempt to dissuade people from taking up temp to perm jobs or teaching them to look askance at such offers as dubious and untrustworthy.

It is also important never to forget that good performance is the key to gaining the trust and approval of any employer and delivering value on the job can at all times set aside considerations of cost from the manager’s mind. After all, a manager’s job offers complex and dynamic challenges at the best of times and requires the juggling a many issues at the same time – without dropping a single ball! The trick lies in showcasing one’s own worth and the value brought to the table, through quality work and committed performance.

The content on this blog is for informational purposes only and cannot be construed as specific legal advice or as a substitute for competent legal advice. They reflect the opinions of DCR Workforce and may not reflect the opinions of any individual attorney. Do contact an attorney for advice specific to your issue or problem.

One response to “When do managers hesitate on a Temp-to-Perm Assignment conversion?”

  1. admin says:

    I wonder what could be SAE’s perspective on this

Lalita is a people/project manager with extensive experience in operations, HCM and training and development across industries like banking, education, business consulting, BPO and information technology. She believes in a dynamic approach to life and learning as change is the only constant.