When the time comes to bring in some new employees, you will have to make some decisions. The debate regarding direct hire vs contract to hire is an important one because both types of staffing services have their advantages.
In basic terms, direct hire firms bring you candidates to fill long-term, full-time positions. Contract to hire staffing firms, on the other hand, attract employees who are comfortable with temporary work. These candidates know that they have the chance to become full-time employees if they perform well enough.
In the end, when considering direct hire vs contract to hire staffing services, your choice comes down to what you want out of your employees and the resources that your company currently has available.
Direct Hire Firms
When hiring a long-term employee, direct hire is usually the way to go. Direct hires commit to the company immediately because they are given job security. This is also important when hiring an in-demand employee, since these individuals tend to have many different options available and might not be content working on a short-term contract.
Direct hire firms are able to attract employees from all over the country. Even highly successful companies could struggle to attract talent unless they promise permanent work. People aren’t going to move to new cities unless they have secure employment lined up.
Potential employees who are currently working with competitors might be more inclined to contact direct hire firms. This is because they could possibly leave their current position for another full-time job, but would never leave if they were only offered a temporary position.
Contract to Hire Firms
It is a good idea to call a contract to hire firm if you have difficulty firing an employee once he or she has been hired. Since there is no guarantee of long-term employment in this situation, you can simply end the contract if the employee doesn’t fit in with the organization. This is like a trial run with the employee where you can evaluate him or her while on the job.
You can avoid overhead costs that go along with hiring new workers when you hire contract employees. For starters, you likely won’t have to pay for medical insurance when the worker is there on a contract basis. You can also avoid going through extensive interviews and spending countless hours of company time like you would when making a full-time hire.
Making the Choice
The type of recruiting firm that you go with is a matter of personal preference. Some candidates might be unwilling to join your organization on a contract basis, while others will jump at the opportunity. It all comes down to what you and any potential candidates want from the relationship.