It’s the tightest labor market ever seen in the United States with even more open positions than there are workers. However, for trending companies offering flexibility, benefits and a quality work environment, the candidates continue to pour in. Companies like Google and Microsoft are in the enviable position of successfully filling contract-to-hire positions for a large segment of their openings. But, it’s not only the major players offering contract-to-hire. As of March 2019, it’s reported that almost 85% of companies are adding contract workers to their teams and roughly 30% have already made the transition.¹

Contract-to-hire positions can fulfill a variety of employer needs. Some companies “try before they hire” with the intention of bringing the contingent workers on full-time if they seem to be a good fit.  Other positions such as seasonal or project work are specifically filled for the length of the contract. Contingent workers may also fill in for employees out for an extended period of time (maternity, e.g.).

Advantages for Employers
1. Ability to try workers out on a trial basis
2. Save the costs of full-time salaries and benefits
3. Avoid the risk of wrongful termination or discrimination suits
4. Simplify the transition of qualified candidates to full-time¹

Advantages for Contractors
Similar to employers, contractors find that they also enjoy the opportunity to see what a position involves and what it is like working for a particular company without a full-time commitment. In the current work environment of part-time gigs, side hustles, and freelance work, contract-to-hire no longer has the stigma that it might once have had. In fact, contract-to-hire workers are frequently considered experts in their field and sometimes are paid more than salaried employees. A few more benefits include giving workers a chance to make money while filling gaps in their resume, learning new skills, and expanding their professional network.

Best Practices
Thinking of going the contract-to-hire route? Here are a few best practices to consider.

1. Transparency – Let contractors know whether or not there is the potential for a full-time position at the end of the contract.
2. Expectations – Explain the responsibilities of the job and what is expected of a successful contractor.
3. Training – Assign a mentor that can walk the new contractor through their responsibilities and answer questions as needed.
4. Review – Take note of the contractor’s work and periodically let them know how they are doing.²

Contract-to-Hire can truly be a win-win strategy for both employers and contractors.

^{By Deborah Thoben}

^{1https://www.flexjobs.com/blog/post/need-know-contract-to-hire-jobs/}

^{2 https://www.wonolo.com/blog/advantages-of-temp-to-perm-hiring/}