There are pros and cons to this employment arrangement for both candidates and managers alike. So what’s the real story on Temp-to-Hire?
Reasons to consider Temp-to-Hire: 1. You want a trial period before committing to a candidate. Perhaps you want to make sure that a candidate has the necessary skills and is a good culture fit before employing them directly. Employee turnover is expensive and bad for morale – it's much easier to cut lose a contractor than an employee. 2. You are unsure of your hiring budget. The additional position fits into your short term budget; but funding may not be allocated for next year’s budget if business conditions change. 3. Workload is variable. With newer positions, you may not be sure if a resource is truly needed, or if the rest of the team can pick up the slack. Or, if a position depends on winning a key account, you may want to use Temp-to-Hire in case the business is not won. Things to Keep in Mind 1. What is the intended time frame before you will hire a candidate direct? We often work with clients on two types of positions that are advertised as Temp-to-Hire: those with a defined contract period, and those that are long term contract with the potential to be hired in. It is important to set expectations clearly, as well as in your interview, what the expected length of the contract will be. When a company states 6 month Temp-to-Hire, they likely already have the approval to hire a candidate direct at that time if all goes well. If they can’t commit to a date, make sure the candidate doesn't have the expectation of a fast conversion and will be comfortable remaining on contract for an extended period of time. 2. What needs to happen in order to be hired direct? Make sure the candidate knows what is most important to the hiring manager. If the candidate can deliver on the points that matter, they are likely to be seen as a valuable contributor to the team – and companies do not want to lose key people. Having specific goals/targets makes the evaluation process simpler and clearer for all involved. 3. Make sure the Temp is being paid at a level that is equivalent to what the permanent job will offer at conversion. Having the compensation from temp to permanent employee be a naturally lateral move makes the process of more likely and simple. Obviously the candidate may make a small premium for the fact that the employer is not contributing to tax burden or offering health and retirement benefits. Overall, Temp-to-Hire has many benefits for both the employer and the candidate. It should always be considered when you're speaking to a candidate who doesn't have to resign from a permanent job to accept your opportunity - those candidates who are between jobs or working freelanced are always great for this type of scenario.
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