A Guide to Contract to Hire Positions For Your Business

November 19, 2021

There are many different workforce solutions that exist for your business, such as temporary staffing, contract-to-hire, direct hire, federal and corporate talent. However, two hiring options that may pique your curiosity are temporary and contract-to-hire.

Contract-to-hire positions allow you to see how a candidate fits in and performs within your business without needing to make a long-term commitment to them. You can offer a temporary contract that can lead to a full-time contract, but you aren’t obligated to provide the employee with a permanent job once that contract ends.

Temporary contracts operate similarly in that you aren’t offering a permanent position. Instead, you may only require someone’s particular skill set for a limited time.
Below, you can find out more information about the benefits of contract employment, how hiring contract workers can work, and whether or not hiring temporary contract employees is a suitable option for your business.

Direct Hire vs. Contract to Hire

Many business owners wonder what the primary difference is between contract-to-hire positions and direct-hire positions. Both of these job vacancy options lead to hiring someone, so you may not understand why you wouldn’t hire someone permanently straight away.
The differences between direct hire and contract-to-hire can be significant. A direct hire is when you hire someone directly without a staffing agency and provide that person with a permanent contract without taking the time to know if they’re the right fit for your business.
In contrast, a contract-to-hire position means you often rely on a staffing agency and have every intention of hiring someone permanently if they impress you during their temporary contract phase.
Choosing this option means that if you’re not happy with a new employee’s performance or if they’re not a right fit within your business, you don’t have to provide them with a permanent position once the temporary contract expires.

Benefits of Contract Workers for Your Business

Using a contractor recruitment company to find suitable candidates for a contract-to-hire position or temporary position may provide your business with numerous benefits, which we’ll cover below

Fast Hiring Process

The average interview process can take over 20 days, which may be 20 days you can’t be without a specific set of skills in your workplace. While you may know you need to hire someone permanently, you can opt for the faster contract-to-hire option that comes without the risk of being stuck with an employee that isn’t the right fit.

You can hire them quickly based on their experience and qualifications, see how they fit into your workplace and perform on a temporary contract, and choose to hire them or not with a new, permanent contract. If they don’t turn out to be the right fit, you can try again with new applicants. 

Lower Fees

Many businesses rely on recruitment companies to help them find the most suitable applicants for their job vacancies. These services cost money, but it’s money well spent when you end up with someone who’s the perfect fit for your business.

 You may be able to enjoy lower staffing agency fees when you opt for a contract-to-hire arrangement. You can also spread out the costs of this service when you convert your contractor to a full-time employee. 

No Commitments

Hiring a new staff member can be scary, particularly when your workplace dynamic is perfect, and the last thing you want to do is affect that. However, with growth comes the need for new employees, so you often have to take the leap of faith and bring someone new into your business.

You can make it less intimidating and commitment-free by offering it as a contract-to-hire process. You can’t know with any certainty that the new employee will fit in and perform as you need them to, but you can specify their end date, which means you don’t have to commit to keeping them on. 

Workplace Flexibility

Both temporary contracts and contract-to-hire work arrangements can provide your business with unparalleled levels of flexibility. If you continually need to scale up or down to meet the demands of your own clients, you may not need to be fully staffed at all times of the year.

 When you contact a recruitment company, you can explain what you’re looking for, and they can help you find the most suitable applicants based on what you need at that moment. You might need someone for three months, six months, or for a single project. 

How to Find Contract-to-Hire Workers

You may know that hiring people on a contract-to-hire basis is one of the most suitable options for your business, but that doesn’t mean you know how to get the process underway. It can be as simple as following these steps below.

1. Describe the Role

Think about the vacancy you need to fill and the work involved in that role. For example, you might require a medical secretary to assist with patient records, basic coding, data entry, and more.

Include as much detail about the position and your company as possible, as this can help a potential applicant decide whether it’s a role they’re interested in applying for. 

2. Think About the Most Suitable Job Type

You may know that contract-to-hire is the most suitable job type, but there’s no harm in considering all possible options so that you can have complete confidence in your decision. Think about the benefits of temporary staffing and direct hires and write down the pros and cons.

3. Hire a Staffing Agency

Staffing agencies have access to a vast talent pool, which means they can be your first port of call for high-quality job applicants. Recruitment firms can also help you narrow down your options, perform reference checks, hold interviews, and put together contracts. Most reputable staffing agencies will keep you fully informed of the process every step of the way.

Contract to hire positions can give you much-needed confidence as an employer to hire someone quickly without lengthy interview processes to ensure they’re the right fit. You can plug a skills gap in your business, enjoy a ‘test run’ period with a new employee, and choose to keep them permanently or not at the end of their temporary contract. Learn more about contract-to-hire positions and whether they’re suitable for your business.