Contract vs. Permanent Roles: Which Is Right for Your University?

Universities today face a unique challenge: finding the right talent to drive digital learning initiatives while battling the ever-increasing budget squeeze.

When I first started in recruitment 12 years ago, digital learning tools were emerging, but their uses had room for improvement. Blended learning models, combining in-person and online components, were yet to be mainstream, and only a few institutions explored digital delivery at scale.

Fast forward to the pandemic in 2020, and we saw the rapid expansion of Digital Learning across Education. By 2022, most universities had pivoted to entirely online or hybrid models out of necessity.

In 2024, digital learning became a cornerstone of Higher Education in the UK. However, due to various challenges highlighted in my previous blog, many Universities cannot cope with the increased demand for Digital Learning, which largely comes down to funding, as opposed to a lack of appetite.

So, with budgets scrutinised more closely than a politician’s tax returns, every penny spent on recruitment needs to deliver measurable value.

This article explores the differences between contract and permanent roles in digital learning and offers guidance on making the right decision for your institution.

Contract Roles: Flexible and Project-Focused

Contract positions are often used for interim needs or specific projects. They are ideal for creating an online course, implementing a new LMS / VLE, or piloting a digital learning initiative.

Why Choose Contract Roles?

• Flexibility: Contractors can be hired as needed, making them an excellent option for short-term projects or busy periods.
• Access to Specialist talent: Contractors bring unique skills that can address specific challenges or gaps in knowledge.
• Control: Maintain oversight of the contractors, ensuring the project is delivered to the highest possible standard.
• Speed and Results: Hiring for contract roles is significantly quicker, which is crucial when facing tight deadlines.

Challenges of Contract Roles:

• Knowledge Retention: Contractors often leave once their work is done, which can result in a loss of valuable insights
• Culture Fit: Short-term hires don’t always fully integrate into your team or the institution’s values.
• Cost Considerations: While contractors offer flexibility, their day rates can often exceed the equivalent salary of a permanent role. However, when including National Insurance contributions, holiday pay, sick pay, and pension contributions, the difference in cost may not be as significant as you think!

Permanent Roles: Building a Stable Team

Permanent positions are typically best for ongoing projects, BAU, or strategic priorities that require consistency. For Universities building a robust digital learning department, permanent hires can be a crucial investment.

Why Choose Permanent Roles?

• Longevity: Long-term employees provide continuity and institutional knowledge that benefit ongoing projects.
• Higher return on training investment: Generally, permanent employees stick around for longer than their contracting counterparts. Any training and upskilling investment you put into your new recruits will stay within your team and provide a higher return on your investment.
• Predictable Costs: Salaries for permanent roles help with long-term budget planning. Contracts are typically remunerated at a daily rate that can fluctuate during busier periods.

Challenges of Permanent Roles:

• Much Longer Recruitment Process: Finding the right permanent hire can take time, especially when working for a University. The process is cumbersome and often involves a significant investment of your time carrying out multiple interviews. With no guarantee of finding suitable candidates. In this case, the process starts again, and before you know it, 6 months have passed, and your needs have changed entirely.
• Missing out on Top Talent:  A result of the point above, but the Digital Learning sector is fluid; if you don’t move quickly, you will lose permanent candidates to other opportunities.
• Longer bedding-in period: Unlike contractors, permanent staff often take longer to get up to speed with new systems and processes. So, it would be unrealistic to expect to start seeing a return on your investment for the first six months.
• Less Flexibility: Permanent roles can tie up budgets, reducing the ability to adapt to changing demands.

Key Considerations When Choosing

• Scope of Work: Contractors are often the better option for particular projects. Permanent roles make more sense for initiatives that require sustained effort over a much more extended period.
• Budget: Consider both immediate and long-term costs. While contractors may have higher upfront costs, permanent hires require ongoing salaries, NI contributions (soon to be 15%), holiday pay, and sick pay.
• Skills Needed: Contractors bring specialised skills for immediate needs, which allows them to be impactful from day one. Meanwhile, permanent staff can be trained to adapt and grow with the University.
• Institutional Goals: Align your hiring strategy with long-term plans. A permanent team is essential for building a stable digital learning department, while contractors can fill gaps that are left as a result of attrition or restructure, etc
• Time: In a competitive recruitment environment, contractors may be more accessible, allowing you to access top-quality talent in less than 24 hours. Whereas permanent hires can take up a significant amount of your time.

Conclusion

Whether you need help launching a new VLE / LMS, designing engaging online courses, or building a new learning function, the right recruitment strategy can make all the difference. Deciding between contract and permanent recruitment is not always straightforward, but aligning your choice with your University’s needs, goals, and budgets will lead you to success.

At Instinct, we specialise in supporting universities with tailored recruitment strategies. Whether you’re hiring for short-term projects or long-term roles, we can help you find the perfect candidates. Contact us today to learn more about how we can support your digital learning initiatives.