For organisations looking to build sustainable talent pipelines, temporary, interim and contract hiring are strategic ways to access skilled professionals. Rather than treating these roles as separate from permanent recruitment, forward-thinking businesses are using temp-to-perm or contract-to-perm models to respond to changing business needs and identify long-term hires with greater confidence.
Temporary and interim hiring is often used to provide short-term cover or additional capacity, while contract hiring typically supports a defined project, specialist requirement or period of transformation. Both can create a route into permanent employment, but the structure, duration and purpose of the assignment may differ. Learn how you can use temporary, interim and contract hiring to assess capability and cultural fit before making a lasting commitment.
The hiring market continues to test workforce planning. Economic uncertainty, rising costs and new technologies such as AI are influencing employer confidence and changing how organisations think about headcount.
A 2% increase in employment costs can have a very different impact depending on the seniority and salary level of the role. For an employee earning £50,000, this represents an additional £1,000 per year. At £75,000, the increase rises to £1,500, while for a £100,000 role it reaches £2,000. Across several hires or a wider workforce, these additional costs can quickly become significant.
Investments in AI and digital transformation add another layer of complexity. Many organisations are still working out which skills they will need in 12 or 18 months and whether today’s roles will need to expand or be replaced by different capabilities.
These pressures make it more important to hire carefully. Temporary and contract hiring give organisations the flexibility to keep moving because they reduce the risk attached to permanent headcount decisions.
Reflecting this, KPMG and the REC’s UK Report on Jobs found that temp billings rose at the steepest rate in more than three years, while permanent appointments continue to decline, albeit at a softer pace than previously.
Employers are turning to temporary, interim and contract hiring because these models offer:
Temp-to-perm and contract-to-perm hiring allow organisations to engage someone on a temporary or contractual basis before deciding whether to offer permanent employment. The appropriate model will depend on the seniority of the role, the nature of the work and the individual’s employment status.
A big strength of contract hiring lies in the insight it provides. CVs, interviews, and references can only reveal so much. A temporary or contract assignment gives both the employer and the candidate the opportunity to understand how the relationship works in practice.
Businesses can assess:
For professionals, taking a temporary or contract role before moving to a permanent position also offers value. They can understand the organisation, its leadership style, the expectations of the role, and the long-term opportunity before committing permanently. This mutual assessment can lead to more confident hiring decisions and stronger long-term outcomes.
Strategic thinking, supported by the ability to adapt, is essential to building an effective workforce strategy. A successful temp-to-perm or contract-to-perm model needs structure to prevent temporary, interim or contract hiring becoming disconnected from long-term workforce goals.
Are you covering a short-term gap, testing a new position, delivering a project, or building a potential permanent pipeline? Being clear shapes the brief, the candidate profile, and the success measures. A temporary hire may be suitable when a business needs immediate short-term support or cover. A contractor may be more appropriate for specialist delivery, transformation or project work. Where a long-term requirement is likely but not yet confirmed, a temp-to-perm or contract-to-perm approach can provide greater flexibility. For established, ongoing roles, permanent recruitment may remain the best option.
The assessment should consider more than whether someone can perform the role. Criteria should include performance expectations, behavioural indicators, stakeholder feedback and cultural alignment. Consistent measures help ensure every candidate is assessed against the same expectations.
If there is potential for the role to become permanent, that should be clear. If the role is genuinely temporary, that should also be clear. Trust matters, particularly in competitive markets.
Hiring managers should not wait until the end of the contract to assess fit. Regular check-ins help identify progress, address challenges, and ensure both sides understand the future potential.
Temporary and contract staffing solutions should not sit in isolation from longer-term succession planning, skills mapping, or transformation projects. This can be achieved through regular workforce planning conversations and by using temporary and contract assignments to identify future skills needs and potential permanent roles.
A strong temp-to-perm model creates a practical, low-risk route to securing long-term talent, building teams that are ready for what comes next.
Goodman Masson works with clients to assess their immediate hiring requirements alongside their longer-term workforce plans. By understanding team structures, business priorities and future skills needs, we can advise on whether permanent recruitment, temporary and interim support, contract hiring, or a blended approach is most appropriate.
Contact Goodman Masson about building a flexible talent pipeline that supports your workforce plans.
Explore how temporary and contract hiring supports talent pipelines, reducing hiring risk while helping organisations build flexible, future-ready teams smartly.
