Today, businesses have different legal options for hiring staff. There is the traditional full-time employment model, which seems to be diminishing in popularity if you’ve been paying attention. There are plenty of freelance 1099-contracting jobs as well as part-time roles too. For employers seeking a way to quickly staff up their teams by working with a recruiting agency, two of the most popular ways to do it are temp-to-hire and direct hire. What are the differences between these two models, and which is right for your business?
What is Temp-to-Hire?
A temp-to-hire role is a temporary position that may evolve into a full-time role. Why would employers go this route? Temp positions are great fillers for seasonal positions that ramp up internal teams when sales are high at certain times of the year. Or, you could use a temp-to-hire to replace someone temporarily on maternity leave or perhaps who has taken a leave of absence to care for an ill family member. Perhaps you have a big push to finish a project and at the end you want the option of either letting the temp-to-hire go or perhaps keeping them on the team.
That brings up a good point—the biggest benefit to a temp-to-hire worker is that the employer has the option to try it before you buy it. Meaning, if they really like the employee, they can exercise their right to hire full-time.
Interestingly, this is also an advantage for the worker who, at the end of the contract may decide they never want to work for this employer again. That’s the benefit of temp-to-hire; both the employer and employee have options.
What is Direct Hire?
Direct hire is closer to the traditional full-time role that your parents or grandparents probably took for granted. Although today, a direct-hire could also cover a part-time position. Legally, a direct-hire is a W2 position, which could be either hourly or salaried. It usually comes with benefits of some sort, whether that’s insurance or a 401k. For employers that have a long-term position that needs filled, a direct-hire makes more sense. In many cases, the employee benefits from the direct-hire, primarily because of the benefits that come with the position.
But is direct hire right for your company? Good question – and the answer is as individualized as the company you work for.
Do You Need Temp-to-Hire or Direct Hire?
To answer this question, ask yourself if you could benefit from:
- A temporary position that needs to be filled or a long-term role?
- Someone to help with a permanent increase in your workload?
- A team to complete a specific project with a defined completion date?
- Trying out a candidate before hiring them full-time?
We Can Help You Find Top Talent!
A staffing agency like ADD STAFF can help your company answer these questions with the talent you need to get the job done. We have vast networks of potential talent that would love to speak with you. If you need a permanent placement or a temp-to-hire team, call on ADD STAFF to meet your hiring goals. Contact us to find out how we can help.