Contract-to-hire, also referred to as “temp-to-hire”, is when an organization brings on a new employee for a short-term position with the possibility for it to eventually become a full-time, permanent role at the end of the contract period. Unlike an independent contractor, a contract-to-hire employee still reports to the organization but will remain technically employed by the staffing agency that recruited them until the contract ends.
There are a variety of reasons why organizations are opting to move towards contract staffing in 2020. When working with a contract staffing agency, companies allow the agency to handle the front-end recruiting responsibilities and back-end payroll, taking the financial pressure off of the organization with hefty onboarding costs. But beyond the financial benefits, what are the other reasons more organizations are looking for a temp-to-hire employee to fill gaps in their teams?
Testing the Waters
Who doesn’t love to take a test drive before they make a large decision? There’s nothing more disappointing or frustrating then going through a grueling hiring process, training a promising new employee, just to have one of you decide that the match isn’t the right fit. Investing in a temp-to-hire employee takes the pressure off of you and allows you to find out firsthand if this is the right person for the role.
Bypass a Lengthy Hiring Process
New hires are often a large commitment for an organization, taking up a significant portion of time and money. With a contract staffing agency, you can generally find a suitable candidate to try in no time, giving you access to an immediate workforce solution.
Flexible Arrangements
Contract employees are available to fill gaps when you need an extra set of hands on a project or clinical trial. During hiring freezes and especially busy seasons, a contract-to-hire employee is the perfect option to use extra manpower without taking a major hiring risk.
Lower Business Liability
Part-time and full-time employees come with significant liability for an organization, while contract staffing is an easy option to bridge any gaps on a given team. Since the staffing agency usually handles the front-end hiring process and back-end payroll, the business can rest assured that there is less expected of them during this transaction.
Qualified Talent That’s Cost Effective
Skilled talent is still readily available in contract staffing markets. Having a flexible workforce at the right price is something that can’t be taken for granted! Specialized projects requiring a certain set of skills are the perfect opportunity for a temp-for-hire employee to prove their abilities on the job.
In the end, it appears that there are far more pros than cons when it comes to contract staffing as a way to fulfill hiring needs for an organization. With the right contract staffing agency, you may find some of the best hires with the lowest risk possible!
