Case Study #3 - Contract to Hire

Often called "Temp to Perm" or "Contract to Hire", we’re seeing an increasing number of candidates and clients explore the potential benefits of having people start as a consultant and transition to an employee.

But the above descriptive names do not adequately describe the nature of these relationships. Usually they are set up as a 40 hour per week (full time) contracting positions. Therefore the term “Temp” is a bit misleading. There is not a guarantee of a hire either. So, as employees entertain Contract to Hire it’s important to know that, sometimes clients run out of budget, or change their mind about the hire.

Conversely, candidates get a taste of the incomes available to them in W2 hourly contacting (actually getting paid for every hour worked) and can become indifferent to converting to a full time employee at a salary level lower than their current average income.

How do you plan for success?
Let’s look at two very recent successful Contract to Hire engagements Tail Wind completed for its clients; a large bank and a large travel and hospitality company.

Stephen
Stephen, a very talented QA Analyst, had just completed consecutive contracting positions, picking up great experience and building his resume. He had a lot of options but since he had worked as a contractor he was very open to Contract to Hire.

A Tail Wind client needed someone quickly but also knew they may have a potential long term opening. We set the appropriate expectations for our candidate: we had a great opportunity, but there was no guarantee of a permanent position. We also set the expectation with our client correctly, working through conversion salary expectations during the recruiting process.

Stephen did an excellent job and our client converted him after 3 months. Our client has a great new employee and our consultant got to test out the new environment and make sure the environment was and excellent fit and he converted to an employee at the salary he expected.

Jayna
The first time we spoke with Jayna, we knew she was an incredible candidate for our SQLServer DBA position at our client, a large local bank. She was working as a full time employee in a local firm. However, to take advantage of our opportunity she’d have to quit her current full time position for this new position structured as a Contract to Hire opportunity.

The client needed someone quickly but they wanted someone they could have the option to convert to an employee. When Tail Wind talks to a candidate that is going to need to quit a current job for a Contract to Hire position; we take the time to lay out the risks and rewards. In this case, Jayna knew herself and her skills well. She new there were other opportunities out there if this one did not work out.

Generally, Tail Wind asks our candidates to first sell themselves in the interview but then take time also to ask questions within the interview that will help them understand the depth and scope of the need. In today’s technical job market, real security is when a consultant can see a body or scope of work extensive enough to sustain you in a position. Thus trained, Jayna entered the interview confident in her skills, but aware of her goals. Jayna decidied to take a leap and landed within an excellent company as a contractor. Shortly thereafter, she was converted to a full time employee and brought to the compensation level she’s worth.