Why Contract-to-Hire Makes Sense

Contract-to-hire is a great way for a company and an independent consultant to dip their respective toes in the water before jumping into a full-time working relationship. It offers businesses a strategic solution to hiring during good economic times and bad, and it offers consultants the opportunity to experience working at a company prior to making a long-term commitment. When a client asks if I can fill a contract-to-hire position in their communications department, I respond with an enthusiastic, “Yes!” 

Contract work is expanding 

Recent data from the Bureau of Labor Statistics (BLS) says that temporary and contract jobs make up 15% of the U.S. workforce, and that rate is expected to grow by 5% annually through 2030. While full-time, W-2 employment will always have a place in the hiring landscape, the steady growth of contract work is attributed to a number of factors.  

It’s no secret independent consultants prefer the flexibility and work/life balance it provides, allowing them to set their own schedules and their locations while also allowing them to choose the work they want to do. This leads to more opportunity for contractors as well as a greater sense of fulfillment and of purpose.  

Businesses have paid attention to this trend and understand that professionals who left the workforce after many years can offer great perspective and experience. As a result, some are changing the way they engage with talent and offer more contract work, whether it’s on a temporary or contract-to-hire basis. 

Temporary contract v. contract-to-hire 

I work with many communications leaders who need to hire contractors on a temporary basis for a particular project or to step in for someone on medical leave. There usually is a pre-determined end-date and an understanding with the consultant that the project will not turn into a permanent position. While these roles attract candidates who don’t want to be tied down to one role or employer permanently, some candidates prefer full-time employment. In these cases, either searching directly for full-time employment position or securing a contract-to-hire role is the best bet.  

That’s not to say a temporary role can’t turn into a contract-to-hire position, because it can. I’ve had a few clients who hired an Evo Communications independent consultant and toward the end of the contract, wanted to offer that person a full-time role. This is always an option for the client, and I’m happy to facilitate the process when I can play a helpful role for the client and for the consultant. Ultimately, it's about making matches that matter and work for everyone.  

When contract-to-hire makes sense 

I also work with communications leaders who ask me to present them with qualified contract-to-hire consultants from the get-go. This makes sense in a variety of circumstances, even in an era of economic volatility when headcount budgets are cut. Businesses may still need to scale up quickly in response to market conditions, and may use discretionary dollars to hire someone on a contract-to-hire basis. It’s a great solution that allows a business to respond to the market and keep operations intact.   

If a business has an open communications role that requires certain skills which are difficult to measure outside of a real-world setting, offering a contract-to-hire position is a great option. Or, perhaps the business has a new role and is still defining the specific required skillsets; that's another situation when a contract-to-hire arrangement works and the consultant can help refine the right elements for a permanent full-time role.  

Whatever the circumstances that lead to a contract-to-hire position, the business gets the opportunity to see a person’s work and determine if it’s a good fit with minimal risk and expense. There’s very little onboarding and training expenses, and the business isn’t yet paying  for employee benefits. At the same time, the candidate is checking the business out, experiencing and gauging important factors like culture, leadership and coworkers.  

Contract-to-hire positions aren’t talked about a lot but they are a great option for the right situation and fit. If you have questions about your hiring needs and want to discuss if a contract-to-hire role is right for your open positions, please reach out; I’d love to help.