Contract-to-Hire DC

You may have noticed ads for contract-to-hire positions. This type of position is becoming increasingly popular. What this means is that a company will contract the services of a potential employee. If the contractor performs well and there’s compatibility, the company may extend an employment offer. If things don’t work out for whatever reason, either party can terminate the contract at any time. No explanation is necessary. Legally, neither party has to give notice of the termination.

Companies used to hire employees on a 90-day probationary basis. Contract-to-hire is taking the place of that probationary period. There’s less red tape, especially for larger companies, which normally have to keep detailed records of any incidences dealing with an employee before letting him go. Contract-to-hire eliminates all those responsibilities.

Some companies may advertise directly. However, in the majority of cases, this is done through a third party agency or a staffing company. Staffing companies recruit potential employees, and match them up with companies. If the applicant receives an offer for a contract-to-hire position, he goes on the staffing company’s payroll until the trial period is over. Normally, this is a 90-day period. If everything works out well, the hiring company extends an employment offer to the applicant (contractor). If he accepts the offer, he gains employee status. At that point, he goes on the company’s payroll and receives all the benefits offered by the company. If, for whatever reason, the hiring company does not extend an employment offer at the end of the trial period, the company can request a different applicant from the staffing company. The contractor is now free to go on other interviews or contract with another company.

One positive point is that neither party has legal obligations toward each other and can terminate the contract at any time. This aspect is good for both parties. However, the negative aspects affect the contractor more than the company.

For example, there is always the possibility of not receiving an offer for employment. The company may decide to keep your services on a contract basis. During this time, there's always the chance that the contract will be terminated.

There have been instances where a company will bring on an applicant on a contract-to-hire basis, and by the time the trial period ends, the company's budget has changed and is not able to extend an employment offer. In other instances, the company may decide that the position is not needed after all. Although these are not common scenarios, it has happened.

Another drawback is that you don't have any benefits while working as a contractor. If the company is undecided about hiring you, you may go without benefits for an indefinite period. This may not be too bad if you have health benefits through your spouse. Some people don't mind this while others have to have the benefits.

Another negative is that your compensation may drop once you change to employee status. This is not always the case, but it is a possibility. Additionally, if the position requires relocation, you may want to give serious consideration to the negatives. Would you really want to relocate to work as a contractor and not know for sure whether you will be hired or not?

You may be wondering how staffing companies recruit applicants. They can recruit in a number of ways. They may advertise in newspapers, through job fairs, virtual communities, and online job boards.

You may have seen ads in newspapers for contract-to-hire positions. A majority of these ads are placed by staffing companies to recruit applicants or contractors. They normally don’t reveal the name of the hiring company until they set you up with an interview.

Job fairs are a second method used to find potential applicants. If you’re interested in attending a job fair, you normally find them advertised in newspapers. You may even do a search on the Internet for job fairs in your area.

Online job forums are an effective recruiting method. The service is generally free and does not take very much time to post. The recruiter normally posts the job description, requirements, and the contact information. Applicants generally are asked to send a copy of their resume and a cover letter explaining why they think they are a good fit.

The fourth recruiting method is online job boards. These are similar to newspaper ads, but are placed online at employment sites. You can expect the ads to read much like a newspaper ad.