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What Does Contract to Hire Mean?

August 2, 2023 | Career Blog

While contract to hire employment has been a vital part of the U.S. economic system for decades, it has become significantly more popular in recent years.

In 2020, the COVID-19 pandemic completely upended the economy and changed the way that companies find talent to fill roles. Even a few years removed from the height of the pandemic, employers are still building a hybrid workforce that includes a mix of standard full-time employees, contract workers, and temporary employees.

This employment shift has driven the popularity of contract to hire opportunities for talent such as yourself. Find out more about this style of work and how it can help you take your career to the next level.

What Exactly is Contract to Hire?

Contract to hire refers to a specific type of employment agreement involving a potential employee and an employer:

  • The employee gets to try out a job for a specified period of time.
  • The company gets to evaluate the employee on a short-term basis before either side commits to a more permanent employment agreement.

When signing a contract to hire agreement, you are doing so with the knowledge that you or the employer can walk away from the relationship at the end of the contract term. At the end of the contract, you and the employer can determine whether the job is a good fit.

Pros of Contract to Hire Jobs

Independent contractors have always been important to the economy, but with the surge in hybrid workforces since the pandemic, it could easily be argued that contract to hire workers have never been more critical than they are today.

As companies continue to restructure their workforce, look for better ways to fill their staffing needs, and make new hiring decisions, you can take advantage of a unique time in the market to find quality work that fits your skills and experience. Here’s how you can benefit.

Test the Waters

Perhaps the most prominent advantage of contract work is that it puts you, as the employee, in a good position to test out a new role, see if there’s a good culture fit, and determine if you like the job before committing to a full-time role.

When you accept a permanent position with a company, you may feel like leaving isn’t an option. Since contract to hire jobs are designed to be short-term options, you can try out the job while understanding that you’re not locked into it for an extended period.

Provides Versatility

Another benefit of contract work is that it allows you to try out jobs with multiple different companies, even at the same time.

If you have full-time employment with a company, you probably don’t have time to try other jobs. Additionally, many companies don’t let their employees work with other companies, especially those they consider competitors.

Depending on the terms of your contract and the number of hours the job requires, you may be able to take on multiple contractor positions at the same time.

Improve Your Future Chances

Accepting a contract to hire job with a company you want to work for or in an industry you’re passionate about is a great way to improve your chances of landing permanent employment when an opportunity presents itself.

By accepting a contract job, you can put yourself in a position to be one of the first names that the company will consider when a permanent job becomes available.

Even if you don’t get a job with the company you start with, you can expand your professional network and use the experience gained to find a job with another company in the same industry.

Industries That Rely on Contract Positions

Curious to know whether this type of employment is a good fit for your industry? While contract to hire positions provide benefits for employers across various industries, some industries rely on this method a bit more than others.

Here is a look at some of the industries that studies indicate rely on this hiring method more than others:

  • Industrial Roles: 37% of temporary workers
  • Managerial Roles: 13% of temporary workers
  • Clerical and Administrative Roles: 28% of temporary workers
  • Healthcare Roles: 9% of temporary workers
  • STEM Roles: 13% of temporary workers

Work With a Staffing Agency to Support Your Job Future

Working with a staffing agency is a great way to secure a contract to hire job. It’s best to work with a proven staffing agency that can help you identify the right job in your area that fits your unique qualifications. Allegiance Staffing is that staffing agency.
To get started on your job search, view our Jobs Board to find contract positions in your area. You can also contact Allegiance Staffing to learn more about how our staffing experts can put you in touch with employers looking for someone like you. Let’s get started today.