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 staffing services have their advantages.
In basic terms, direct hire firms bring you candidates to fill long-term, full-time positions. On the other hand, contracts to hire staffing firms 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 vs. Contract to Hire Staffing: What to Know
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. Timeliness is also important when hiring an in-demand employee. These individuals tend to have many different options available and might not be content working on a short-term contract.
Direct hire firms can 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 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 end the contract if the employee doesn’t fit in with the organization. This is like a trial run with the employee to 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. You likely won’t have to pay for medical insurance when the worker is there on a contract basis, for starters. 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 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.
Additionally, you may find that you want to try the services of both direct to hire and contract staffing firms. Thankfully, there are firms such as TruPath who specialize in offering both. Once you partner with TruPath, the search firm’s team creates a unique recruiting solution that focuses on your needs. This combines benefits from both direct to hire and contract to hire staffing solutions. As a result, TruPath can deliver your ideal candidate to you when you need them the most.
Want to learn how TruPath can boost the success of your candidate search?
Contact the TruPath team and discover a personalized recruiting solution that fits your needs.