Contract, Direct Hire & Contract-to-Hire: What Do They All Mean?

By | | HR and Management Tips

Are you looking to hire? A staffing agency can make the process easier and more affordable. But before you make a move and partner with one, you need to think about your needs and whether contract, direct-hire, or contract-to-hire is right for you.

If you’re not sure about the specifics of each and the advantages they offer, here are some insights into these services, how they can benefit your company, and which might be a fit for you:

Contract Hire

Many companies will use the term Contract when referring to Temporary or Contingent Staffing.  The main difference is that Contract suggests it’s long-term such as months and Temporary is often used to describe the short term such as days or weeks. Contract/Temporary hiring is right if you’re bringing workers in temporarily to cover for an employee who’s sick or away for an extended period; if your company is dealing with a short-term increase in production demand; or if you have a project that requires a specialized skill set.

For instance, if you have an employee going on maternity leave or your busy season is coming up, then temporary/contract hiring is an ideal solution. You can keep these employees for as long as you need them, whether it’s one week or a few months, part-time or full-time. Contract/temporary hiring provides a cost-efficient way to fill gaps, increase agility, and respond to new needs without adding to your fixed overhead.

Direct Hire

Direct hiring is what people used to refer to as permanent placement or regular hire. Direct hire is perfect when you need to bring in a new employee and you want that employee to stay with the company.  Direct hire is ideal for, but not restricted to, higher-level or leadership positions, or if you find a candidate who is currently working.

The process to hire direct can often take longer than with contract hiring since both you and the employee are making a commitment; however, working with one of Connecticut’s staffing agencies can speed up the process and give you access to high-quality talent.

Contract-to-Hire

Contract-to-hire is right when you think you’d like to hire an employee, but aren’t quite ready to commit. You’ll be able to evaluate an individual on the job and in your culture, and make a commitment when you’re both ready.

When you partner with one of Connecticut’s staffing agencies, there’s typically a set time for the arrangement, at the end of which you may decide whether or not to extend an offer. If you do, you’ll have peace of mind knowing it’s to someone whose work you know.

Interested in learning more about how your company can benefit from one of these staffing options?

A.R. Mazzotta is here for you with a range of solutions. As one of Connecticut’s top staffing agencies, we’ll first take time to get to know your business philosophy, culture, and goals, as well as your hiring requirements and needs. We’ll then hit the ground running, finding talented professionals for a variety of positions.