September 19, 2017

As the job market evolves, so do the different types of employment. Traditionally, people have mostly worked in full-time or part-time positions; however, we’ve seen other types of employment become more popular, such as contract and contract-to-hire employees.

Some IT professionals are making the switch to contract positions as they tend to have a flexible schedule and they can gain a lot of experience with several companies in a relatively short amount of time.

What is a contract-to-hire position?

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Contract-to-hire and contract positions indicate that an individual will work in a given position until a specific date; however, those working on a contract-to-hire basis may be offered to continue working in the same position full-time after the contract part of their role has been completed.

Why do organizations utilize contract-to-hire positions?

Contract-to-hire positions may not make sense for some companies, but certain organizations can benefit from having this type of employee. The IT industry is saturated with contract-to-hire employees as many technical-level roles are only needed until a project is complete. Therefore, companies that have larger IT departments, and have a lot of technical projects, favor contract-to-hire employees as they can fill the role(s) they need quickly and later decide if the employee is needed after the project ends.

Are contract-to-hire positions right for your organization?

A great starting point to determine if contract-to-hire roles are right for your organization, is to consider the company’s culture and needs. Career Profiles indicates that companies may prefer contract employees as a cost savings method. For example, hiring a full-time employee requires a base salary, benefits, social security, and taxes in which the company pays for. On the other hand, contract employees are typically paid by the hour, which gives the company more control over the cost.

As the job market continues to change, contract-to-hire positions are becoming more mainstream, and can benefit both the company and employee. There is no right or wrong answer when deciding to use contract-to-hire employees, but if your organization’s needs don’t require someone to work on a permanent schedule at this point in time, then contract-to-hire might be a great option for you!

Would contract-to-hire employees be a good solution for your organization?  

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Posted By: Jaclyn Roman

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