Introduction to Contract to Hire Services
Contract to hire can be defined as those services being offered by the staffing agencies in
the form of candidates to be recruited as potential employees by their client organizations.
Contract to hire is based on the principle of “try before you buy” approach and is the best
option for those companies who would like to use the skills of the candidate and also
determining his/her set of actions, test strengths and to determine work ethics before
making a permanent hire decisions.
The contract to hire services is similar to contract services except that client organization
can hire the consultant or candidate of the staffing firm on its permanent employer rolls
after the expiry of the initial contract period. There are some inherent advantages of going
in for contract to hire services for an organization and these are:
1. There is no time lost by the organization in finding an applicant to fill in the job position.
2. It allows the organization to hire the contract employee of the staffing agency on a full
time basis if the organization is satisfied with the work profile of the candidate during the
work tenure of the concerned candidate.
3. The work history of the selected candidate is already known to the client organization
therefore it becomes easier for the employer to delegate important work to the candidate
without any hassles’.
4. The contract employee of the staffing agency gets inducted into the work culture of the
organization quite easily as he/she is already familiar with the business environment.
5. In case of a contract to hire there is no requirement of facing interviews, on screening
tests and other personality test rounds as the staffing firm sends a ready made candidate
as per the needs of the company’s job position.
The procedure of contract to hire provides an additional level of security to the organization
in the process of hiring new full time staff. Usually the staffing firm provides an ideal
candidate that is contracted to the client organization and if the organization is satisfied
with the candidate can make that candidate a permanent offer of employment. In that case,
the staffing agency usually does not charge recruitment fees. Where the organization is not
satisfied by the candidate’s expectations during the contract period, the staffing firm or
agency provides a replacement resource with the full approval of the organization.