The A-Zs of Hiring Glossary

Contract-to-hire

What is Contract-to-Hire?

Contract-to-Hire is a type of employment agreement where an employee is hired on a temporary basis with the possibility of being hired on a full-time basis after a specified period of time. It is a popular option for companies looking to fill a position for a trial period before committing to a permanent hire.

During the contract period, the employee is considered a contractor and is paid an hourly rate or a fixed salary. They may also receive some benefits, such as healthcare or paid time off, depending on the terms of the contract.

If the employee performs well during the contract period and the company decides to hire them on a full-time basis, they will typically receive a salary and benefits package that is comparable to other full-time employees in the company.

Contract-to-Hire arrangements can benefit both the company and the employee. Companies can evaluate a potential employee’s skills and fit within the company culture before making a long-term commitment, while employees can gain valuable experience and potentially secure a full-time position.

What is contract-to-hire?

Contract-to-hire, also known as temp-to-perm, is a type of employment arrangement where an employee is hired on a temporary basis with the possibility of being hired permanently after a specified period of time. This allows the employer to assess the employee’s skills and fit within the company before making a long-term commitment.

How does contract-to-hire work?

Contract-to-hire typically involves a temporary contract between the employer and employee, usually lasting between three to six months. During this time, the employee works on a trial basis, and the employer evaluates their performance and fit within the company. If the employer is satisfied with the employee’s work, they may offer a permanent position with the company.

Contract-to-hire Dos And Donts

Dos

  • Do clarify the terms of the contract including the length of the contract, the rate of pay, and the possibility of conversion to a full-time employee.
  • Do maintain a positive and professional attitude throughout the contract period, as this can increase the likelihood of being hired permanently.
  • Do make an effort to learn about the company culture and values, and try to align with them as much as possible.
  • Do communicate regularly with your recruiter or hiring manager to ensure that expectations are being met and any concerns are addressed promptly.
  • Do keep track of your accomplishments and contributions during the contract period, as this can be useful in demonstrating your value to the company.

Donts

  • Don’t assume that the contract will automatically lead to a full-time position, as this is not always the case.
  • Don’t neglect your professional development during the contract period, as this can hinder your chances of being hired permanently.
  • Don’t engage in negative or unprofessional behavior, as this can damage your reputation and hurt your chances of being hired permanently.
  • Don’t be afraid to ask questions or seek clarification if anything is unclear or confusing.
  • Don’t forget to maintain a work-life balance, as burning out during the contract period can negatively impact your performance and chances of being hired permanently.
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