What Does Contract-to-Hire Mean?

By | | HR and Management Tips

When looking to add employees to your workforce, you’ve probably heard of the different options available to you. You can choose to hire someone on a temporary or contract basis, direct hire, or contract-to-hire, each bringing its own set of benefits. Bringing on a temporary or permanent employee makes sense, but the last is a little more ambiguous. What does contract to hire, or temporary to hire, actually mean?

Contract to Hire

The option of contract to hire takes both contract and direct and meets them in the middle. By choosing this, you have the opportunity to evaluate your new employee on a temporary basis before hiring them into a direct-hire position. You bring on the temporary hire for a contracted amount of time and, in the end, decide if you’re interested in bringing them on in a permanent capacity or moving on.

It works out well for all parties involved because a company has the opportunity to review a candidate working in their environment, and the employee understands the possible end date of employment. This is also an opportunity for the employee to gauge the culture and determine if the job is a good fit for them.

When should you choose contract-to-hire?

Determining when to use this staffing option takes more thought, especially if you’ve never tried it before. It’s likely, depending on your experience with staffing agencies, that you’ve primarily brought on direct hires and occasionally a temp.

Enlisting a contract-to-hire program will typically occur for one of three reasons. First, you may currently have a temporary hire you’re looking to transition into a permanent placement. You didn’t set out with this goal in mind, but after monitoring his or her performance, you realize you want them full-time.

Next, you may start a temp to hire program if you want to start looking for employees with direct hire potential that you don’t have to make the full commitment with at the beginning. You have the option to trial as many temps as you need to find the one who fits the best.

Finally, you want to evaluate a new employee on a temp basis before extending the direct hire offer. This is similar to the second reason, but instead of a program of working with temps, you are considering one employee for a specific role, and contract to hire allows you to confirm their fit and experience are what you’re looking for in your company.

Find the right choice for you with A.R. Mazzotta

At A.R. Mazzotta, we know people are your most valuable asset. You want the right talent to help meet your business goals. Our flexible staffing services include contract/temporary, temporary-to-hire, and direct hires. No matter which option you choose, we guarantee thorough screening to make sure we are delivering candidates perfectly matched to your skill requirements, business goals, and work culture. Contact us today to learn how we can assist in your Connecticut staffing needs.