Understanding the Difference Between Temp Solutions, Contract-to-Hire, and Direct Hire.

Crawford Thomas Recruiting Blog

Temp, Contract-to-Hire, and Direct Hire are the primary solutions for your current openings.

The question is, which solution is best for your current opening?

To help gain a better understanding of what each category means and how they differ, let’s dig into them individually.

Temporary Staffing 

For hiring managers seeking a temporary solution, using a firm like Crawford Thomas Recruiting is an ideal solution for unpredictable workloads. Typically you’ll use a temp employee for project work, seasonal positions, and other limited-term needs, such as a leave of absence. Temp positions typically have a set time frame. Through all assignments, the candidate is employed by the staffing firm.

Direct Hire

When a client has a long-term need, direct hire is ideal. Direct hire positions are permanent, usually full-time positions with benefits. A staffing agency is involved during the recruitment and hiring process, but after an offer is accepted, the candidate goes directly on the client’s payroll.

The process for direct hire can be a little slower because clients want to take their time when making a long-term decision. It is ideal for candidates who are not as comfortable taking the risk of working contract. Depending on the company and their incentive package, direct hire employees are eligible for company benefits such as health, retirement, and PTO, and have the security of a long-term, permanent position.

Contract to Hire

A hybrid of temporary and direct hire, contract-to-hire is a way for clients and talent to test the waters. It allows potential employees to prove themselves to the company and see if the culture is a good fit. Likewise, it allows the client to test the candidate for a predetermined period of time. During the contract period, the talent is employed by the staffing firm.

The contract-to-hire process typically moves fairly quickly. Before entering into a contract-to-hire situation, clients should outline the terms – how talent will be evaluated and when the contract period ends. Clients should also maintain open lines of communication and provide consistent feedback to put the talent at ease. Once a permanent position is offered and accepted, talent transition from the staffing agency’s payroll to the client’s payroll.

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Crawford Thomas RecruitingUnderstanding the Difference Between Temp Solutions, Contract-to-Hire, and Direct Hire.