Temporary vs Permanent Hiring: What’s Right for Your Business in 2025?

Temporary vs Permanent Hiring

Recruiting the right people is never easy; especially now.

With shifting workloads, labour shortages, and an unpredictable economy, many industrial businesses including our clients are asking the same question:

Do we stick to permanent hires, or should we go down the temporary route?

There’s no one-size-fits-all answer. But if you are aware of the strengths of both options, you can build a workforce that’s more flexible, more productive, and ready for whatever 2025 throws at you.

Why Temporary Staff Might Suit Your Operation:

Sometimes you just need people... and fast. That’s where temporary recruitment shines.

Whether it’s a last-minute job or a seasonal peak, temp staff give you the ability to scale your workforce up (or down) without any long-term commitments.

Why companies hire temporary staff:

  • Speed: Need someone tomorrow? We’ve got people who can start within 24–48 hours.

  • Flexibility: Cover staff holidays, boost teams during busy spells, or plug unexpected gaps.

  • Lower risk: No permanent contracts, no long onboarding, no stress if it doesn’t work out.

  • Cost control: No pensions, sick pay, or additional benefits, just the hours worked.

  • Time saving: You don't have to take the time to read CVs and screen applicants as we do that for you.

Best for:

  • Sudden surges in workload

  • One-off projects or contracts

  • Sickness or holiday cover

  • Roles with high turnover or lower skill requirements

 

Why Permanent Staff Might Suit Your Operation:

Of course, not every role can be filled short-term.

When you’re thinking about long-term growth, training, and culture, permanent staff are the way to go. These are the people who’ll learn your systems, mentor others, and stick with you through the ups and downs.

Why companies choose permanent hiring:

  • Stronger loyalty & engagement: People invest more when they know they’re here to stay.

  • Room to grow: You can train, promote, and shape a team that fits your business.

  • Consistency: A solid core team creates stability and protects key processes.

  • Cultural fit: Permanent hires help define and uphold your company values.

Best for:

  • Skilled or technical roles

  • Supervisors, managers, or key decision-makers

  • Business-critical operations

  • Teams you want to build and keep for the long haul

Is a Mix of Both a Viable Option?

In 2025, most smart businesses aren’t picking just one route, they’re blending both.

They build a strong core team of permanent staff, and then bring in temporary workers when things ramp up or shift unexpectedly. It’s the best of both worlds.

Why a hybrid hiring strategy works:

  • You stay agile without sacrificing quality

  • Costs stay predictable

  • You reduce burnout for permanent staff

  • You tap into a bigger, more diverse talent pool

Need a Bit of Guidance?

Whether you’re planning ahead for growth or urgently need hands on deck, we can help you make the right call.

We work with many businesses to find the right mix of temp and perm staff, with recruitment that’s fast, flexible, and tailored to your needs.

Get in touch with us. Let’s talk about what your team needs in 2025, and how we can help you get there.

by Oli Page

Spring Update 2025

Impacts of Minimum Wage Increases and NI Tax We’ve Noticed

As the recruitment industry adapts to ongoing changes in the economy, at BE Recruitment we've noticed significant shifts over the first quarter of 2025 in the way businesses approach hiring and staffing. One of the most notable changes has been the evolving conversations we’ve had with our clients in response to the increase in minimum wage and National Insurance tax. These changes have brought new challenges that have reshaped the recruitment landscape, forcing us and our peers to re-evaluate how we do business and how we engage with clients.

A Tighter, More Competitive Market

The market has undeniably become tighter, with growing competition among agencies. Due to the wider economy and costs constantly rising, more businesses are looking for solutions to keep their operational costs down. Businesses are being forced to look at hard cost savings vs the value of service in the form of soft cost savings. However, this has made it more challenging for agencies in the driving, industrial & logistics space to offer competitive pricing while maintaining quality service.

This tightening of the market has had a direct impact on rates. As recruitment agencies continue to face increasing operating costs, partly driven by the increase in national minimum wage and an increase in National Insurance tax from 13.8% to 15%. We've seen a shift in how agencies are approaching pricing. In order to remain competitive, many agencies in our space, have dropped their rates to win business, rather than focusing on selling the value of their service. The priority has shifted to cost reduction, and unfortunately, this sometimes means the quality of service gets overlooked in favour of securing a deal. In previous economic climates the service offered by the recruitment agency would be a deal-breaker for many businesses, whereas the cheapest cost is now often the more favourable option.

Client Pressure and Rate Breakdown Requests

This year, more than ever, we’ve had clients pushing for a deeper understanding of our rates. Many of our clients have asked us to break down our rates, providing a detailed justification for our margin and pricing. This has been a noticeable shift compared to previous years when rates were often discussed in more general terms.

The increase in these requests signals a growing pressure on businesses to better manage costs, and in many ways, the conversations about pricing have become more intense. In fact, we’ve had to justify our rates more this year than in any other year before. Long-term clients, who previously trusted our pricing without needing an extensive explanation, are now, understandably, requesting a thorough breakdown of our margins and justifications for the services we offer. These discussions have been challenging but have provided us with an opportunity to revisit how we communicate the value of our service and the added benefits we provide.

Adjusting Rates to Retain Clients

In one scenario, we had to lower our rates for a long-term client in order to keep the business. With the minimum wage going up and the pressures of maintaining competitive pricing, it became clear that a price adjustment was necessary to ensure the continued partnership. While it wasn’t an easy decision, it was a necessary one in order to maintain our relationship with a client we’ve worked with for over five years.

We’ve noticed this situation is not unique to us. Many other agencies are experiencing similar challenges as they balance client needs with the ongoing financial pressures of running a temporary staffing recruitment business in the current economy. Lowering rates may provide short-term relief, but it also raises important questions about long-term sustainability and the value we deliver to clients.

The most challenging aspect of this shift has been the conversations we’ve had with our long-term clients. Historically, these relationships have been built on trust and mutual respect, and the prospect of negotiating rates in the face of rising costs has been challenging but necessary. However, these discussions have been essential in ensuring we continue to meet the evolving needs of our clients without compromising the quality of service they have come to expect from us.

Looking Ahead

The shift in the recruitment market brought on by changes in minimum wage and National Insurance tax has undoubtedly posed challenges for agencies and clients alike. While it’s been a difficult year for pricing and negotiations, it has also reinforced the importance of adaptability and communication in our industry.

As we continue to move forward, we remain committed to a ‘white glove’ service that add value to our clients’ businesses. While the landscape may be more competitive than ever, we believe that transparent, honest conversations about rates and service expectations will help us continue to build strong, lasting relationships with our clients.

In these uncertain times, collaboration and flexibility are key. We’re prepared to navigate these changes with our clients by our side, offering them the best solutions, even when the economy presents new challenges.

by Oli Page