Advantages of Contract Hire
Try out an employee.
Determine their interest and commitment in the position. With contract-to-hire, you get the chance to see the whole picture—work environment, co-worker culture, and experience the performance— before you commit. Employee turnover is expensive – and if a contractor is terminated, the staffing agency is responsible for the unemployment costs.
Get work fast.
Without needing to make a long-term commitment, you can spend less time interviewing, and more time earning.
You are unsure of your hiring budgets.
The additional position fits into the short term budget; but funding may not be allocated for next year’s budget if business conditions change.
Workload is variable.
With newer positions, a company may not be sure if a resource is truly needed, or if the rest of the team can pick up the slack. Or, if a position depends on winning a key account, a company may want to use contract to hire in case the business is not won
“The cost to the American economy of disengaged employees is estimated to be $400 to $500 BILLION per year.”
The Gallup Organization, 2004