Why Direct Hire Makes More Sense Than Contract to Hire

There are some very healthy statistics about the numbers of contract or temporary workers employed by US companies. Every day there are at least 2.5 million workers employed on temporary contracts. Of those it is estimated that employers are trialing at least 59 % as a method to find good employees.*

Trial before you hire has become a very effective way to assess a potential new hire before an offer for direct employment is made. The benefits to both employer and contract worker are numerous including flexibility, assessing corporate culture fit and the shift of employer liabilities to the “staffing” agency. Using temporary/ contract employees on a trial basis make a lot of sense. Yet if it is used as the sole method to recruit employees without considering other options a business is at risk of missing an opportunity.

Contract to hire misses out on the obvious.

Why aren’t you recruiting from the other 91% of employees are who are still employed at your competitors business?

STEM (Science, Technology, Engineering and Math) professions have almost half **the rate of unemployment of the general population and with a lot more to lose in terms of salary, these professionals are not going to risk a regular income for contract to hire opportunities:

Few Employees Intend to Leave***
When the global consultancy BlessingWhite surveyed more than 3,500 employed professionals—2,616 from North America—between March and June 2012, and asked them if they planned to remain with their organization for the next 12 months, 56 percent said “yes, definitely,” and 33 percent said “probably.”
Just 12 percent of respondents, most of whom held executive, management or supervisory titles, answered “no way,” suggesting they had plans to leave their employers as soon as possible.

Ask yourself – Would you leave your job for a contract to hire opportunity?
Give your business an edge by using all options – not just contract to hire.

Look at Direct Hire options as well as contract to hire. Not only does the labor pool represent a larger choice – your business also gets the option of rebates and refunds if an incorrect hire is made. Reduce your business risk by using structured recruiting processes to establish good job descriptions, standardized questions, job shadows, reference checking and testing – all provided by staffing agencies.

Distinct advantages to consider with direct hire are the guarantees that you don’t get with contract to hire. The costs to your business in terms of fees for direct hire and contract to hire are usually the same. Employers that work closely with staffing firms often negotiate fee structures and payment terms.

Don’t discount direct hire services as a method to find the best talent and help your business grow.

If you need more information on the tailored services that are giving our clients a competitive advantage, call SimSTAFF on 407-965-2596 or email sales@simstaff.com

Alternatively just keep an eye on us!

Like us on Facebook
Tweet us : @SimJOBS

* Source American Staffing Association, Customer survey.
** Source: US Bureau of Labor Statistics
*** Blessingwhite.com