The real reasons for adapting contract to hire staffing services

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Posted by : Dated : 05/29/13 Comments : Add a comment

Contract to hire staffing services has emerged as the best alternative for reducing the costs related to employee recruitment and training. The uncertainty in the economic landscape is driving HR managers to balance their work force and budgets like never before. Companies are now required to be flexible in the vicissitudes of the hiring costs, time allocated and the available resources. The contract to hire model of staffing can work perfectly to cost effectively streamline the hiring process. Employers are currently hiring with caution even though the current economic conditions point out that there is a possibility of a continued job creation especially in the field of Information Technology.

Finding the right candidate for each position is critical and contract to hire staffing provides the most flexible approach to adding resources. Contract to hire staffing frees organizations from the paperwork and obligation of a direct hire employee in case the concerned organization discovers that their candidate does not fit in the position. Organizations by hiring the contract to hire staffing services helps them in remaining competitive and productive thereby making full time staffing decisions with confidence.

Contract to hire staffing is helping organizations to insulate against the risks associated with bringing on new employees by providing a trial period before the position becomes permanent. It also protects organization from the cost to hire ratio that is much higher than a candidate’s actual salary. The contract to hire staffing term is typically based on 90-day conversion term even though there is some flexibility with the conversion time, as some organizations do prefer 120-180 day conversion terms. This contract or conversion term gives organizations an opportunity to examine the abilities of the concerned candidate that they do not usually get without taking on all the risks associated with a direct hire.

After the agreed upon conversion term, the hiring manager can make decision whether or not to permanently hire the candidate. In case, the organization feels that the concerned candidate is not an ideal fit, then their (candidate’s) assignment ends and another candidate is brought in for a trial run. Some of the basic benefits of contract to hire staffing are:

1. Projects are completed on time supported by appropriate or first-rate staffing resources.

2. There is flexible length of contract for the hiring programs.

3. There are no unemployment costs, benefit payments or other costs if a candidate separates after the contract period.

4. It ensures satisfaction for both the employer and the candidate before converting the position into a permanent hire.

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