Permanent employees, regular employees or the directly employed work for an employer and are paid directly by that employer. Organizations that align their human capital with their business strategy have achieved both bottom line and strategic results. An organization that is equipped with quality and dedicated permanent staff has a greater chance of surviving and succeeding in the long run.
Contract staffing is when employees are hired to perform specific functions in a contractual relationship for a client company and for a defined period of time. Contract employees are hired based on the specific needs of the client company. Other common names for this are temporary employees, temps, temp to perm and short-term employees.