Temp-to-Perm in Unexpected Industries: How Contract Hiring Is Transforming Healthcare, Education, and the Creative World

Healthcare organizations have always dealt with fluctuating staffing needs, traditionally relying on travel nurses and locum tenens physicians for short-term coverage. In recent years, however, temp-to-perm hiring has gained momentum as hospitals and clinics grapple with persistent talent shortages and high burnout rates. Rather than making immediate permanent offers, healthcare employers are bringing on clinical and administrative professionals as temps, gauging skill and cultural fit over an extended period. Marie Jennings, a healthcare recruiter with MedStaff Solutions, explains, “Organizations want to ensure cultural fit and skill compatibility before making a long-term commitment. Temp-to-perm allows both sides to ‘test drive’ the relationship.” One large Midwestern hospital, for example, reported that 30% of its temporary nurse hires were converted to full-time staff in the past year. This approach not only helps fill urgent vacancies but also leads to improved retention and job satisfaction, as both employees and employers can make informed decisions about long-term employment.

Education: Flexible Staffing in a Rigid System

The education sector, often associated with stability and predictability, is also embracing temp-to-perm strategies. Traditionally, substitute teachers were brought in only to cover short-term absences. Now, many districts are introducing long-term substitute or “resident teacher” roles, offering explicit pathways to permanent positions. Dr. Lila Mendez, a superintendent in a major urban school district, notes, “We face teacher shortages, but also want to ensure we hire people who are committed to our mission. Temp-to-perm lets us observe teachers in action and gives new graduates a real sense of what our school is all about.” For educators, these roles provide a gentle introduction to the profession and allow them to build relationships with students and staff before signing a full contract. For school districts, it’s an opportunity to ensure a good hire and reduce the risks associated with turnover.

The Creative Industries: Agility Meets Opportunity

Perhaps most unexpectedly, the creative world—encompassing advertising agencies, design firms, and film production companies—is increasingly adopting temp-to-perm hiring. Traditionally reliant on freelancers for project-based work, creative organizations now use temp contracts as a way to vet potential long-term collaborators. A recent survey by Creative Circle, a prominent staffing firm, found that 40% of agencies now use temp-to-perm hiring for roles ranging from copywriting to art direction. Jasmine Lee, a creative director, explains, “It gives us agility. We can respond to client needs quickly and identify who truly understands our brand.” For creative professionals, these arrangements offer a chance to demonstrate their skills in a real-world context, often leading to more meaningful and lasting collaborations.

Why the Shift?

Several converging factors are driving the temp-to-perm trend in these unexpected industries: Talent Shortages: Specialized roles in healthcare, education, and creative fields are increasingly difficult to fill. Temp-to-perm hiring enables organizations to cast a wider net and attract candidates who might be hesitant to commit immediately. Cultural Fit: Both employers and employees benefit from a trial period to assess alignment in values, communication styles, and work ethic before making long-term commitments. Flexibility: Organizations can quickly adapt to changing needs without overcommitting to permanent hires, while workers gain valuable insights into a workplace before making career-defining decisions. Technology: Digital staffing platforms and sophisticated HR tools have made it easier to match candidates with roles, manage onboarding, and track performance, smoothing the temp-to-perm transition.

Supporting Evidence

The broader labor market reflects this shift. According to data from the American Staffing Association, nearly 35% of temporary placements in 2023 were in industries outside the traditional sectors, up from 22% five years prior. Additionally, a LinkedIn Workforce Report found that listings for temp-to-perm roles in healthcare and education increased by 18% and 12%, respectively, from 2022 to 2023.

Challenges and Considerations

Despite its advantages, the temp-to-perm model is not without challenges: Job Security Concerns: Temporary employees may feel uncertain about their future, potentially impacting morale and productivity. Onboarding Inconsistencies: Temps may not receive the same level of training and integration as permanent staff, leading to gaps in performance or engagement. Regulatory Hurdles: In highly regulated fields like healthcare and education, credentialing and compliance requirements can complicate the transition from temporary to permanent status. Perceived Inequity: Long-term “temporary” roles can create tension if workers feel strung along without clear prospects for permanent employment.