Depending on the professional requirements and amount of expertise necessary in a possible applicant, hiring new staff is a time-consuming procedure that might be difficult. Understanding the distinctions between direct hire and contract-to-hire is essential when considering hiring.
Contract-to-Hire Position? Advantages to the Employer and Employee
Some businesses might test a candidate’s qualifications and cultural fit with the organization by hiring them on a contract-to-hire basis. When determining whether to accept a contract-to-hire position, there are numerous factors to consider.
What is a Contract-to-Hire Position?
A contract-to-hire arrangement places an employee in a temporary role for a predetermined amount of time with the prospect of a full-time position at the end of the contract. The brief contractual roles give both the business and the individual the chance to try out the position before committing to a full-time position.
While technically working for the staffing agency, a contract-to-hire employee has a written agreement to work for the client business.
Advantages of Contract-to-Hire
Whether you’re looking for a short-term job, a more long-term job, or a freelance opportunity, the flexibility built into a contract to hire is advantageous in many ways. Some benefits of a contract-to-hire role include the following:-
1. Show Your Worth
Contract-to-hire positions can allow you to establish your worth to a business and convince your employer that you would be a good long-term match for the position. During your brief tenure in this type of employment, you can make a good impact on the role, team, and company as a whole by using your talents and knowledge.
You can leverage your contributions to land a permanent job if they are measurable or obvious.
2. Enhance Your Credentials
Temporary jobs can play a significant role in your career history, particularly if they bridge the gap between two permanent employment opportunities. They can be a useful choice as you look for a longer-term position, particularly if possible full-time employers aren’t responding.
3. Identify Your Suitability for a Position or a Company
You can test whether a firm and a position are a good fit for you via a contract to hire. It’s a more thorough method of investigating a firm while job hunting. You can use the experience to assess whether or not the company’s work environment, objectives, and values are a good fit for your future.
Contract to hire can let you test out roles or career paths in your field without committing to a full-time position until you’re certain of your choice.
4. Grow Your Network
A contract-to-hire position might also aid in expanding your network of business contacts. A job offer at the same firm, a client’s company, or another company with mutual contacts could all result from the relationships you create while working there.
It also gives you the chance to ask for a positive reference or referral during your subsequent job hunt, even if the employer does not wind up granting you long-term employment.
Disadvantages of Contract-to-Hire
There are other factors for contract-to-hire employment to be aware of during your search, in addition to the significant advantages.
1. Safe Temporary Employment With No Future Guarantee
Even if you enjoy your profession and perform well in it, your employer might not decide to keep you on when your contract expires for a permanent position. Employers utilize contract hiring to supplement staff during peak times or cover for a full-time, permanent employee who is on leave.
2. No Employment Benefits at Times
Benefits, including health insurance, paid time off, and pension options, are not frequently provided to contract workers. Your time as a contract-to-hire employee could not count against your overall benefit accrual if you are initially hired through a staffing or recruiting agency but then hired on a full-time basis by the employer.
Conclusion
Contract-to-hire jobs sometimes carry a bad reputation. After all, short-term contracts don’t appear to be able to accomplish anything to further someone’s career, and they don’t offer perks or guarantees for the employees.
Contract-to-hire positions allow you to test out organizations and roles without committing long-term, so they can be helpful to you throughout your job search. Contract-to-hire positions offer flexibility, which benefits both businesses and individuals.
About the Author
Simon Chou is the Vice President of Operations and Growth at BCjobs.ca. Over the course of his career, he carved a niche in brand development, marketing strategy, and online presence for startups. Prior to joining BCJobs.ca, Simon was an advisor for several global blockchain projects including Litecoin, NEM, and Ripple. In the past, he also worked with Fortune 500 companies in the healthcare space through SM Digital—a global marketing agency.
