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Hiring and career news and advice from our experts.

Contract-to-Perm vs. Permanent Positions: Which is Right for Your Company?

DVATechnology - Contract to Hire Vs. perm

Your business wants top talent on staff. To accomplish its goal, it may consider contract-to-perm and permanent employees.

There are many pros and cons associated with offering both contract-to-perm and permanent jobs. To understand these advantages and disadvantages, let’s answer some of the biggest questions surrounding both types of jobs.

What Is a Contract-to-Perm Position?

With a contract-to-perm position, a business offers a contract to an employee. The contract stipulates that the worker will remain with the business for a designated time frame. Following the contract’s completion, the business has the option to offer the worker permanent employment.

What Are the Benefits of a Contract-to-Perm Position?

A contract-to-perm job gives a business the opportunity to see how an employee performs in a role. If an employee meets or exceeds the company’s expectations, the business can offer a permanent role at the completion of the worker’s contract. Or, if a worker falls short of a company’s expectations, the business is under no obligation to offer permanent employment.

What Are the Pitfalls of a Contract-to-Perm Position?

Businesses may need to offer above-average compensation to get a quality job candidate to accept a contract-to-perm position. Also, if a contract-to-perm employee is offered a permanent role with a company, there is no guarantee he or she will accept.

What Is a Permanent Position?

A company can offer a permanent position to a job candidate who is expected to fill the role for an extended period of time. Many permanent positions involve full-time work hours. And they can come with medical benefits and other perks that employees won’t receive with other types of positions.

What Are the Benefits of a Permanent Position?

Permanent roles promote stability. They enable businesses to show their commitment to top talent. Once a job candidate accepts a permanent role, he or she is expected to stay with a company. Meanwhile, a company can support a permanent employee and do everything in its power to help him or her succeed.

What Are the Pitfalls of a Permanent Position?

Offering permanent positions can be costly if a company is not careful. Because, in the event that a business adds a permanent employee and the hire does not work out, the business is on the hook for any money invested in this worker. Furthermore, a company may need to include medical benefits and other perks to permanent employees, so it can distinguish itself from the competition. As a result, it can be expensive to hire permanent employees.

Contract-to-Perm vs. Permanent Position: What Is the Best Option for Your Company?

There may be times when hiring contract-to-perm employees is a superior option over adding permanent ones, or vice versa. To determine which option can deliver the best return on investment, it pays to partner with a professional staffing agency.

DVA Technology is a world-class staffing agency that understands the challenges associated with attracting, recruiting, and retaining top talent. We can evaluate your business and help you decide whether to add contract-to-perm or permanent employees, or both. For more information, please contact us today.

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