Contract Hiring: Companies nowadays are hiring employees as per their conveyance of the project duration and with specific rate as per hour/per day which ever suites the best. And a contract employee cannot be considered a permanent employee.
Benefits of Contract Hiring:
1. Providing a link: It will allow both the parties to evaluate their sustainability and suitability for a longer term relationship. And after successful completion of the projects at hand the assignments leads to permanent employee.
2. Flexibility and Choice: It gives the flexibility to the employee to hire the talent when you need it.
3. Saving time and Money: It certainly saves time and money as the key focus is on the business activity. It will also minimize the burden of operational costs.
4. Creating a buffer: Hiring Contract employees minimizes employer responsibilities wrongful dismissals, severances, mandatory deductions, and taxations among other liabilities.
Permanent Employee: Permanent employee is an employee who is being hired for a position on the terms and conditions of the company i.e. after completion of 6 Months in the company you will be an permanent employee of the company. The pay structure and they have no predetermined time limit for employment.
Benefits of Permanent Hiring:
1. Insurance: Many companies provide Insurance cover to the employees covering med claim policies which cover all the major diseases.
2. Vacation Holiday and sick pay leave: There is a vacation and sick pay leave which contributes the major part as a permanent hiring. An employee is entitled to get all the major benefits on holidays. Although there is a provision for sick pay leave during a year.
3. Retirement benefits: Retirement benefits are given to the employee as per the company rule. Employees’ contribution is also made which is being paid to the employee after retirement.
4. Job Advancement: Even though there's no guarantee that you'll be offered a promotion, you might qualify for advancement opportunities that temporary employees don't qualify for. As a permanent employee, employers view you as a long-term investment so promoting you within the company might serve their best interests.