Contract to Hire Vs Full Time

When it comes to finding the right employees for your company, you may be faced with the decision of whether to hire someone on a contract-to-hire basis or bring them on as a full-time employee from day one. Both options have their pros and cons, so it`s important to weigh them carefully before making a decision.


Contract-to-hire, also known as temp-to-perm, is a popular option for many companies. In a contract-to-hire arrangement, the company hires a person for a specific period of time, typically three to six months, with the intention of offering them a permanent position if they prove to be a good fit.


• Flexibility: Contract-to-hire allows companies to test out a potential employee and evaluate their skills and fit within the company before making a long-term commitment.

• Cost savings: Contract-to-hire employees are typically paid only for the time they work, which can be less expensive than offering a full-time salary with benefits.

• Reduced risk: If the contract-to-hire employee is not a good fit, the company can end the contract without the long-term commitment of a full-time hire.


• Uncertainty: The potential employee may be hesitant to accept a contract-to-hire position, as there is no guarantee they will be offered a full-time position.

• Time-consuming: The hiring process for a contract-to-hire position can take longer than for a full-time position, as the company must evaluate the employee`s performance before offering a permanent position.

• Limited benefits: Contract-to-hire employees may not have access to the same benefits as full-time employees, such as health insurance, 401(k) plans, and paid time off.


Hiring a person as a full-time employee from the start is a more traditional option for many companies. In a full-time arrangement, the employee is hired with the expectation that they will be a permanent member of the team.


• Stability: Full-time employees provide stability and continuity for the company, as they are committed to the organization long-term and invested in its success.

• Benefits: Full-time employees typically have access to a range of benefits, including health insurance, 401(k) plans, and paid time off.

• Commitment: Hiring a person as a full-time employee shows a commitment to their professional development and growth within the company.


• Cost: Hiring a full-time employee can be more expensive than hiring a contract-to-hire employee, as the company is responsible for the employee`s salary and benefits.

• Risk: There is a greater risk involved in hiring a full-time employee, as they cannot be easily terminated if they are not a good fit for the company.

• Flexibility: Full-time employees may not be as flexible as contract-to-hire employees, as they are committed to the organization long-term and may not be open to short-term assignments or temporary projects.

In conclusion, both contract-to-hire and full-time arrangements have their advantages and disadvantages. Ultimately, the decision depends on the specific needs and goals of your company, as well as the skills and preferences of the potential employee. Careful evaluation of these factors can help you make the right choice for your organization.