What Is a Contract-to-Hire Job? Definition & Meaning

A contract-to-hire job is a short-term position with the opportunity to become a full-time, permanent job at the end of the contract. The position lasts anywhere from three months to a year, though some can go as long as three years.

Difference between Contract-to-hire jobs and contract jobs

In a contract to hire job, a candidate is hired temporarily at first. However, the intention is that the worker will become a permanent employee if they perform well during their temporary status. Whereas in a contract job, there is no intent to consider the candidate for FTE (Full time role) even after the contract ends. Contract roles are mostly tactical and based on business needs and this is not the case for contract to hire jobs.

Should you do contract-to-hire?

This is not a one size fits all situation and you’ll need to carefully assess your own individual situation before deciding to enter into a contract-to-hire arrangement. If you want to assess the company culture and need time before signing up for a full time employment, this can be a good start.

Benefits you can have as a contract-to-hire employee:

Budget flexibility : You can have an edge as there are no benefits you’ll get like a full time employee. you can request for more net and cut down on the options you don’t want.

You can have a restart if you’re resuming to work after break : If you’re someone who is resuming to work after a long break, you can ask employer to offer you a contract to hire role. Even if the role doesn’t end with a permanent job offer, it makes it easier to explain unemployment when going back on the job market.

Contract-to-hire positions can help you expand your professional network: These jobs can help you expand your professional network as you’ll get to meet to people from . Although those connections might not immediately lead to a permanent role in the business, those people could have other connections that can help you get a permanent job in another place.

Negatives of Contract-to-hire positions:

Lack of benefits same as an Fulltime employee : Benefits like health insurance coverage, paid leave or retirement funds will not be applicable in this role. For cases where you’re hired in a contract-to-hire role through a staffing or recruiting agency but then hired through the company full-time, your time as a contract-to-hire employee may not count toward total accruement of benefits.

Job security : Although you’re told you’ll be converted to full-time employee after the end of the contract, there might some business situations for which your employer wants to continue/extend your contract period. In some cases, employers may have additional temporary work they may consider you for, either as an extension of your current contract or in the future. So it’s important to ask all the questions and clarify before accepting the CTH (contract-to-hire) offer.

Example of Contract-to-Hire Agreement/Offer components

A contract-to-hire agreement should have a few key components to protect both the employer and employee.

Most contract-to-hire documents will include:

• Start date
• End date
• Job description
• Explanation of what could happen when the contract ends, for example:
  • Hire employee for a full-time position
  • Let the employee go
  • Sign a new contract-to-hire agreement
• Conditions for termination of contract
• Details about time off -Paid & unpaid leaves
• Any other benefits

Is it good to consider Contract-to-hire offer?

Carefully research about the role and see if this a better position than your existing offer. If you’re looking to experiment and switch to consulting career, taking CTH jobs is a good start.

Questions to ask about a contract-to-hire position?

• What is the job profile and how is performance assessed in this role?
• What is the contract duration and confirmation to consider you for full-time role?
• Leaves and other benefits?
• Is a laptop/computer provided or do I need my own?
• What are the chances of the contract being extended?
• Who would be the manager and will you have a official job title or called as consultant?
• Travel /relocation benefits will be applicable for CTH/not?

Final Thoughts:

Contract to Hire jobs that has advantages and disadvantages for both employers and employees. In order to make the right decision, it’s best to evaluate your current situation as well as professional situation before making a call. Also, it’s best to talk to executive recruiters and book a consultation to assess your market value and then finalise.

The right time to leave a job can be very obvious for some people, while others fail to notice the signs that indicate a change is necessary. Here are the warning signs that it might be time to make a career move.

Your work culture is toxic

Whether it’s a group of employees or the overall culture of your office, if you’re spending five days a week in a negative atmosphere, it’s time to get out. Don’t wait for other employees to leave. Take control of where you are spending your time, and find a cultural fit that works for you.

The company you are working for is going downhill

Whether you’re at a small start-up or MNC, there are obvious signs that a company isn’t performing well, and this could affect more than just your bonus or salary. Know when to jump ship before you find yourself lost at sea. Also, don’t wait for the employer to hand you a pink slip. Start looking for a new job if you notice any signs that the company is struggling financially.

You are working all day and round the clock

If you feel like you’re living for work and not working to live, it might be time to reassess your priorities and find a company that allows you to have a life. There are times when our jobs can be demanding, but if you don’t have time to live your life, then what’s the point?

Your relationship with your manager isn’t good

There’s the old saying, “You don’t leave a job, you leave a bad boss,” for a reason. Bad leadership can seep into every fiber of an organization—and it often does. If your relationship with your direct manager is strained, not only will your work suffer, but your career will as well. When you don’t have a positive relationship with your boss, your entire future career can be put at risk. Don’t leave your options in the hands of someone who isn’t looking out for what’s best for you.

Your talent isn’t valued and you’re underpaid

If you think you’re paid way less than market standards and your manager is deaf to offering a pay revision, you should not wait for the next appraisal cycle. If your skills are not valued and you don’t get what you deserve, this is a sign to start sharing your resume with other employers.

Your responsibility has increased but your pay hasn’t

There’s a time in everyone’s career when a special project or late nights might not be rewarded with pay, but if your workload has increased for a prolonged period of time, and you aren’t being compensated for that, you should consider looking for a company that will pay you for what you’re delivering.

You Aren’t Learning Anymore

Getting ahead in the workplace can happen in a variety of ways, but all with the same upward trajectory. If you feel like you’re stuck in a rut, consider where you’d like to see yourself and what you can do to get there. If your work is not giving you any new opportunities to learn and grow, this will not only block your career growth but also impacts your monetary growth.

Final thoughts

While the first step would be to try to resolve the situation through meaningful conversations with your boss, it doesn’t always work. Whether you’re seeking new opportunities for career growth or escaping a toxic environment, don’t let your reservations hold you back from finding professional happiness.