When your organisation faces a spike in workload, staff absences or a specialised project, bringing in an extra set of hands can make all the difference. But before you rush to fill the gap, you need to answer a key question: what’s the best approach to temporary vs permanent hiring in healthcare?
Should you hire a temporary employee or a permanent staff member?
This decision is not always straightforward. It involves careful consideration of your business goals, budget, timeline and the skills required. By weighing these factors early, you can avoid costly missteps and ensure you hire the right person for the right purpose.
In this blog, we will walk you through what to consider when choosing between a temporary hire and a permanent employee helping you align your hiring strategy with your current and future needs.
Start with Your Budget
Begin by assessing what your budget allows. If your business requires short-term support or needs to fill a gap quickly, hiring a temporary or contract worker may be your best option. Contractors give you flexibility without a long-term financial commitment, making them ideal for temporary increases in demand.
However, temporary staff often command higher hourly or daily rates. Since they do not receive entitlements like annual leave or sick pay, their upfront cost can appear higher than that of a permanent hire.
On the other hand, if you forecast consistent work and stable growth, bringing on a permanent employee may be more cost-effective over time. You can invest in their development, benefit from long-term stability and build internal capacity.
Consider Your Business Cycle
Next, look at your business activity over the year. If you operate in a seasonal industry or experience fluctuating workloads, temporary staff offer a practical solution.
For example, healthcare providers often face increased demand during flu season, holiday periods or funding changes. In these situations, having access to experienced temporary professionals helps you scale up quickly without committing to long-term staffing levels.
By contrast, if your organisation is in a growth phase or planning to launch new services, a permanent employee will give you the continuity and commitment needed to support that expansion.
Evaluate How Quickly You Need Someone
Timing plays a critical role in hiring decisions. If you need someone to start immediately, a temporary worker is usually the fastest way to get help. Contractors are often available to start at short notice and can hit the ground running.
In contrast, permanent candidates typically have notice periods, often around four weeks. If you have just won a contract, need urgent project support or must cover leave for a key team member, hiring a temp ensures work continues while you search for a permanent replacement.
Additionally, temporary staff can provide excellent cover during periods of annual, sick or parental leave, allowing you to maintain service quality without overloading your existing team.
Clarify the Skills You Need
Ask yourself: are you looking for specialised skills to complete a specific task or project? If so, hiring a contractor or temporary specialist could be the right move.
For instance, if you are implementing new systems, undergoing accreditation or delivering short-term compliance projects, bringing in someone with niche expertise ensures the job gets done efficiently and professionally.
Alternatively, if your goal is to build internal capability, hiring a permanent employee allows you to invest in their development, align them with your company culture and benefit from their long-term contributions.
Align with Your Long-Term Goals
Every hiring decision should support your broader business objectives. If you are focused on stability, retention and team development, then a permanent hire will deliver the greatest value over time. They bring long-term consistency, deeper engagement and the potential to grow into leadership roles.
However, if your immediate priority is to manage risk, fill gaps quickly or complete time-sensitive work, a contractor offers the flexibility and expertise to meet short-term needs without long-term overheads.
Factor in Admin and Compliance Requirements
Managing temporary staff comes with its own responsibilities from payroll to compliance. If your internal HR resources are limited, this can become a burden.
To save time and reduce risk, many organisations partner with a recruitment agency. A reliable agency will:
- Source and screen qualified candidates
- Handle onboarding, payroll and insurance
- Conduct safety checks, reference checks and medical clearances
- Ensure compliance with industry and legal requirements
This not only reduces administrative stress but also ensures your temporary workers are ready to contribute from day one.
Final Thoughts
Choosing between a temporary hire and a permanent employee depends on more than just cost it is about aligning your workforce with your business goals.
If your needs are immediate, seasonal or project-based, temporary staff give you the agility to adapt quickly. If you are planning for long-term growth, team culture and leadership development, investing in permanent employees provides the structure and stability to support that journey.
Ultimately, the right hiring strategy helps you stay productive, competitive and ready for whatever comes next.
About Talenthub
At Talenthub, we support Australian businesses in the healthcare, disability and NDIS sectors by connecting them with both temporary contractors and permanent professionals. Whether you need skilled staff for a short-term project or want to grow your long-term team, we take care of the sourcing, screening, compliance and onboarding so you can focus on what matters most: delivering high-quality care and services. Let’s work together to build the workforce that fits your vision and delivers real results.