Temp, Contract-to-Hire & Direct Hire: What’s the Difference?Whether you’re looking for a job or looking to hire, it’s important to understand the differences between the most common types of employment, including temporary, contract-to-hire, and direct hire. Each type is designed to suit varying needs. Learn more and discover which is best for you:
Temporary employment is an ideal solution for unpredictable workloads, project work, seasonal peaks, and other limited-term needs, such as a leave of absence. Temp positions typically have a set timeframe. Through all assignments, the talent is employed by the staffing firm.
Temping is a flexible option for clients and talent alike. It helps clients save on employee costs and allows talent to build a resume and gain experience on different projects with different industries.
When a client has a long-term need, direct hire is ideal. Direct hire positions are permanent, usually full-time positions with benefits. A staffing agency is involved during the recruitment and hiring process, but after an offer is accepted, the candidate goes directly on the client’s payroll.
The process for direct hire can be a little slower because clients want to take their time when making a long-term decision. It is ideal for candidates who are not as comfortable taking the risk of working contract. Direct hire employees are eligible for company benefits such as health, retirement, and PTO, and have the security of a long-term, permanent position.
Contract to Hire
A hybrid of temporary and direct hire, contract-to-hire is a way for clients and talent to test the waters. It allows potential employees to prove themselves to the company and see if the culture is a good fit. Likewise, it allows the client to test the candidate for a predetermined period of time. During the contract period, the talent is employed by the staffing firm.
The contract-to-hire process typically moves fairly quickly. Before entering into a contract-to-hire situation, clients should outline the terms – how talent will be evaluated and when the contract period ends. Clients should also maintain open lines of communication and provide consistent feedback to put the talent at ease. Once a permanent position is offered and accepted, talent transition from the staffing agency’s payroll to the client’s payroll.
Contract-to-hire offers many benefits for talent and employers when both have sincere intentions. Talent can rest assured that Advantage Resourcing only partners with employers who are serious about hiring and have a long term need.