Whether you’re looking for a job or looking to hire, it’s important to understand the differences between the most common types of employment, including contract, contract-to-hire, and direct hire. Each type is designed to suit varying needs. Learn more and discover which is best for you:
Contract employment is an ideal solution for unpredictable workloads, project work, seasonal peaks, and other limited-term needs, such as a leave of absence. Contract positions are not permanent and typically have a set timeframe. Through all contract assignments, the talent is employed by the staffing firm.
Contracting is a flexible option for clients and talent alike. It is ideal for people who desire a higher hourly wage and do not need benefits, such as insurance and vacation pay (while staffing agencies may provide some benefits, they are limited). In turn, clients save on employee costs and only need to keep talent for as long as they are needed. It allows talent to build a resume and gain experience on different projects with different industries.
When a client has a long-term need, direct hire is ideal. Direct hire positions are permanent, usually full-time positions with benefits. A staffing agency is involved during the recruitment and hiring process, but after an offer is accepted, the candidate goes directly on the client’s payroll.
The process for direct hire can be a little slower because clients want to take their time when making a long-term decision. It is ideal for candidates who are not as comfortable taking the risk of working contract. Direct hire employees are eligible for company benefits such as health, retirement, and PTO, and have the security of a long-term, permanent position.
Contract to Hire
A hybrid of contract and direct hire, contract-to-hire is a way for clients and talent to test the waters. It allows potential employees to prove themselves to the company and see if the culture is a good fit. Likewise, it allows the client to test the candidate for a predetermined period of time. During the contract period, often about 90 days, the talent is employed by the staffing firm.
Contract-to-hire offers many benefits for talent and employers when both have sincere intentions. Talent can rest assured that Digital People only partners with employers who are serious about hiring and have a long term need.
There you go – a quick overview of the different types of employment. If you have questions about contract, contract-to-hire, or direct hire, reach out to your local Digital People office. We’re here to help!