Also known as Temp-to-Hire
Contract-to-hire, also known as temp-to-hire arrangements are a short-term staffing solution that gives organizations and job seekers a trial period before the two parties commit to a full-time contract.
As a hiring manager, you should understand these arrangements well to determine if they are right for your hiring needs.
The Components of a Contract-to-Hire Agreement
A Contract-to-Hire agreement can include:
- Specific start and end dates.
- A job description.
- Stipulations for potential contract continuation.
- Conditions for offers of full-time employment.
- Conditions for terminating the contract.
- Benefits when applicable, including insurance, sick leave and paid time off.
More organizations than ever have been using contract-to-hire agreements, with up to 1 in 5 postings now offered as contract-to-hire work. Experts in employment trends expect these professionals to make up one-half of the labor force within ten years.
Things to Keep in Mind
It is always better to have a specific idea of what you want to achieve, and how you will know if you have gotten there. So before hiring temporary staff, ask yourself what goals the new employees will have, how to assess them, and whether you will recruit permanent team members from your pool of temporary hires.
These goals and expectations can be broken down into daily job functions and performance indicators. What will the daily work schedule look like? How long should it take for temps to perform specific tasks? When should you hire someone as a full-time employee? What makes an ideal contract-to-hire employee?
The Pros of Contract-to-Hire Agreements
The contract is flexible and can be used in the same way as a probationary period in a typical employment contract. During this time, management will be able to see with great clarity if the employee fits in and is able to perform. This helps talent acquisition managers avoid costly hiring mistakes and make better quality decisions.
Contract flexibility makes it possible to expand operations when it is not clear how long the new hires will be needed. Contract -to-hire agreements are particularly useful for busy seasons or special projects. Startups find them especially helpful since they need to be highly flexible in their operations.
Another advantage for management is that contract-to-hires can be given specific, important assignments that might not be tackled otherwise.
When employees face some anxiety because they don’t have a permanent contract, many will respond with extra diligence on the job. You may find you are getting better results with your temps than with full-time workers.
In the event that contract-to-hire employees don’t work out, companies don’t usually have to fire them but can simply wait until their contracts run out.[CT1]
Many job seekers tend to avoid contract-to-hire opportunities due to their lack of guarantees. If you want to entice them, let them know that these roles can increase job security, since you will know for sure whether the employee is a good fit. The arrangement can be a great opportunity to build a professional network.
Contracted hires will be able to prove their value while expanding their skills and experience. Sometimes employers offer better-than-average compensation packages to keep them.
Contract-to-hires offer both parties an in-depth and definite method of guaranteeing a good fit in terms of skills, experience, and organizational culture. No other form of job agreement provides such certainty.
Industries and Roles
Contract-to-hire Employee Candidates may include:
- Information Technology
- Graphic Design
- Project management
- Software Development
· General Administration
· Seasonal Positions
and many more…
Why You Should Work With a Recruiter to Fill Contract-to-Hire Roles
Utilizing regular contract-to-hires can involve plenty of challenges and effort. If your company hits too many roadblocks on the way, it is easy to get frustrated.
On the other hand, if you work with a proven employment agency to recruit contract-to-hire workers, you can expect them to handle a great deal of the up-front research for you.
When working with Relevante, simply provide us with basic job descriptions and goals for the roles you would like to fill, and we’ll do the rest.
We will find your candidates, review their resumes, and conduct initial interviews. We’ll go through a high level of volume to provide you with a smaller, manageable pool of strong, vetted candidates.
More and more organizations, from major corporations to startups are now trying contract-to-hire agreements. Their flexibility and the speed at which positions can be filled are attractive for many business scenarios. The use of these agreements will likely continue to expand in the future.
Let’s talk today, and we can help you decide if the contract-to-hire system is right for you.