When the economy is tight and companies are leery to make a commitment to hire new permanent employees, a Contract-to-Hire (C2H) arrangement is an excellent option. These scenarios also benefit candidates during a recovery cycle, as well as during good times. Here are some things to consider before deciding if a C2H arrangement is right for you.
C2H is a specific means to a specific end. Contract-to-Hire agreements outline a set length of time a contractor will work for the employer. At the end of that set period, the employer decides if the contractor will be hired as a permanent employee or dismiss the contractor.
Contract-to-hire relationships work well by allowing both contractor 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, the truest contract-to-hire arrangements will result in success for everyone.