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Insights   >   Contract Staffing vs Permanent Recruitment in Saudi Arabia: Tips To Help You Decide

Contract Staffing vs Permanent Recruitment in Saudi Arabia: Tips To Help You Decide

Author: Daniyal Chishti
Sep 29, 2022
Employers • KSA

When you are looking to hire a new employee, you want to make sure that you take the time to consider all the options. This means considering both permanent and contract recruitment. Some employers will only pursue permanent staff, while others may prefer to hire contractors for short-term roles or projects. So, which is best? Read our blog to help you decide which is right for your business.

Permanent Recruitment

What is Permanent Recruitment?

Recruiting for permanent positions entails hiring full-time employees who will be expected to grow with the organization. The company's payroll fully covers these employees. They are eligible for all the benefits that the business is required to offer, such as medical insurance, paid leaves, and more.

 The need for Permanent Recruitment

Suppose you need to hire a new employee. You may decide that the best way to get the right person for your business is through permanent recruitment, especially if you're starting up or expanding and want someone who will stay and grow in the vacant position for years. It can also be helpful if you want someone with experience with similar roles in other companies or industries—or even if they've already worked on projects like yours!

Saudi Arabia is developing a vibrant start-up ecosystem with a healthy inflow of start-up funding. Investment in start-ups is expected to reach $500 million by 2025, with much of this money going toward digital transformation, with a focus on FinTech, digital payments, and other areas which need permanent talent to help plan and develop long-term strategies to ensure long-term success for a start-up company or a newer business in Saudi Arabia.

Moreover, permanent recruitment may save you money in the long run, especially if it is a long-term role. Once a candidate is hired, you do not have to keep searching for new candidates. Additionally, your company can invest time and resources in training the new hire, making them more productive and less likely to leave the company. To assure both; employee retention and contribution to a thriving and diverse economy, Saudi Arabia not only encourages the hiring of nationals for private-sector roles but also adequate investment in their future. This would help organizations like yours meet Saudization targets but also help groom young Saudi talent to assist in various mega projects across the Kingdom to achieve Vision 2030.

Contract Staffing

What is Outsourced Contract Staffing?

Outsourced contract staffing involves hiring an employee for a fixed contract period. It is also quite common to hire employees on a contract period before hiring them permanently. Businesses typically turn to staffing companies for contract hiring assistance when they need talented individuals to work on projects or need to outsource staff due to limited visa quotas. The process begins with recruiters sourcing, CV screening, and interviewing candidates. Contract staffing is a popular choice for many candidates and companies in Saudi Arabia since the desire for flexible working is on the rise. The market is changing more quickly than ever. In the second quarter of 2022 alone, about 221,551 flexible contracts were issued to workers.

The need for Contract Staffing

There are several reasons why a Saudi-based organization like yours might want to choose contract outsourcing over permanent recruitment. If a project requires a specific skill set, it’s probably best to hire an external team to provide it. One such example is the skill gap in the supply chain industry that has affected Saudi Arabia more than other countries due to highly accelerated growth across multiple new and upcoming industries.

If you need to match the skills of your team with what's required for your project, then hiring contractors may be more cost-effective than hiring permanent employees because they can be hired on an as-needed basis—you may not need someone long-term just because they have some years' experience under their belt! Contractors often have the expertise and experience required for these tasks, but contractual flexibility allows them to stay and contribute to your business only as long as required.

Similarly, if multiple projects are underway simultaneously, such as the three mega projects in Saudi Arabia, The Qiddiyah Project, The Red Sea Project, and NEOM, scaling up teams might well be necessary (due to shifting priorities); having access to contract workers will help keep costs in check while still receiving high-quality output from each worker, thus contributing to the successful completion of projects!

Many companies in Saudi Arabia turn to contract staffing because it allows them to access a large pool of diverse candidates. When it comes to making Vision 2030 a success, a Saudi-based company like yours must employ a diverse range of employees with the experience of working on cutting-edge projects around the world.

Moreover, the rise in contract staffing solutions across Saudi Arabia has allowed employees to break free from the chains of more ‘standard’ jobs. There are no probation periods, long-term conditions, or schedules; it also gives employees complete freedom with their career path! Life as a contractor provides one thing that professionals love about this gig; the ability to manage work/life balance by switching between permanent roles when needed - giving them greater control over their lives in general while still making enough money at the same time.

Here's How TASC Can Help Businesses in Saudi Arabia

When you’re thinking about contract staffing or permanent recruitment, there are many things to consider. The three factors that will help you decide which is better for your business are:

  • The kind of role
  • The skills needed
  • Your available visa quotas.  

If you're looking for long-term relationships, then hiring employees full-time makes sense, but if you want flexibility, then outsourced contractual staffing may better suit your needs.

TASC Outsourcing is one of the leading recruitment and HR solutions specialists in Saudi Arabia. In line with the Saudi Vision for 2030, we are committed to boosting your business by providing outstanding "people solutions" across Saudi Arabia. Our service ranges from contract staffing to permanent recruitment and temporary hiring. Thanks to our extensive local and global proprietary candidate database and strong on-the-ground presence in the Kingdom, we can serve firms across industries by supporting Saudization and niche expat hiring.

So, if you’re a business seeking highly skilled talent on a contractual or permanent basis, the team at TASC is here for you. Contact us today to learn more about our recruitment solutions.

Follow us on LinkedIn to stay up to date on the latest recruitment news across the Kingdom and the GCC region.

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