A Contract To Hire (C2H) arrangement is an excellent tool in a technical hiring manager’s toolbox.These scenarios also benefit candidates during a recovery cycle, as well as during good times. But, just like any other tool, some care and diligence is required to ensure a good outcome. Let’s start by understanding what Contract To Hire is, and what it isn’t.
Contract To Hire is a specific means to a specific end. It is the acquisition of an eventual full time employee for an approved full time seat by a designated date. This shouldn’t be confused with a “Right To Hire” scenario, whereby an employer utilizes the services of a consultant for project work and wishes to reserve the “right” to decide later if a full time employee is needed in that role. “Right To Hire” options can benefit employers and consultants when proper expectations are set, but for now we will concentrate on Contract To Hire.
C2H – Why it works and why it doesn’t. Contract To Hire relationships work well by allowing both candidate and employer to benefit from a trial period prior to the consummation of a full time hire. The contract evaluation period often calms uneasiness and allows for faster initial on-boarding, thus preventing important company initiatives from falling behind while the company waits to find the “perfect” candidate.
When a Contract To Hire arrangement breaks down it is usually due to a lack of leg work to ensure that expectations are set, checked, and properly managed on each side. Open communication most always prevents or solves any issues. However, both sides need to be willing to ask the right (tough) questions, and evaluate what the other party hopes to achieve from the arrangement. Most often it’s the unanswered question that leads to failure.That being said, most true Contract To Hire arrangements will result in success for everyone.
Here are just Four basic considerations to think about in a Contract To Hire scenario.
Is the candidate a fit for the role based on skills, experience, and career goals? A person’s skill set, background AND career goals must be in alignment with the role for the best outcome. This alignment ensures that the candidate is placed into a satisfying and mutually beneficial role, instead of just accepting the offer of income until something better comes along.
Why does the company prefer A Contract To Hire arrangement? If the company has a history of hiring on a Contract To Hire basis, then things generally work out well. If the employer has never hired in this fashion, clear expectations of performance and goals should be set and reviewed regularly.
Are there limitations or additional expectations to be aware of until hired full time? Be sure to ask questions about things like system access, overtime, and travel. Asking these questions will help you avoid overlooking a critical requirement for success.
Is it safe to leave an existing job for a Contract To Hire position? Let’s assume that all your questions are answered and the company is stable, with a history of successfully placed Contract To Hire employees. Let’s also assume that you’ve done your legwork and the prospective employer has provided a solid job description, a date that you can expect to convert from contract to full time status, and a plausible salary range. With the knowledge of those details not in question, the opportunity can be a good move as long as the job is in alignment with your goals and a match for your skills. In a stable company, a well planned and executed Contract To Hire scenario poses no more risk to a solid performer than a permanent hire.
