Here’s the Deal with Contract to Hire Positions

Contract to hire…
If you’ve been in the job market lately or have had a recruiter reach out to you, it’s likely that you’ve heard the term contract to hire recently. What is a contract to hire position? What does it mean for you as a job candidate and how should you approach a scenario that involves contract to hire roles.

We get to it all below.

But first, who am I and why should I even be discussing contract to hire positions with you. Well, my name is Rob Paone and I’m a former technical recruiter who has written this article, which is sponsored by CareerBloom.co The No.1 Professional Resume Writing Service of 2017.

You see I’ve placed countless professionals in contract to hire scenarios in my past career, before moving into the software sales world.

The fantastic thing about being a former recruiter is that I’m not here to feed your BS about “how great contract to hire positions are!” or how they give job candidates all the flexibility in the world.

I’m here to shoot you straight with the facts, so if that’s what you’re interested in, let’s get started.

In today’s current economic environment, the utilization of 3rd party staffing agencies is increasing at a significant rate. Many companies either prefer to use staffing agencies instead paying for large, in-house recruiting teams, or their internal recruiting teams can’t get the job done so they hire outside help.

When you’re in the process of evaluating jobs through a 3rd party staffing or recruiting agency, a term that might be spoken about quite often is the “contract to hire” or “contract to permanent” placement scenario. It’s something that you might not be familiar with now, but trust me, it’s time to get familiar because it’s not going away.

Using my past experiences, let’s look into exactly what a contract-to-hire (or contract to permanent) position is and the potential outcomes that can result for them. Definitely read through this before you ever sign on the dotted line of a contract to hire contract.

What is a contract to hire position?

A contract to hire position is a term used in the staffing world to describe a position where you are placed at a company, initially as a contractor making an hourly rate. Following a specified time period, typically three, six or twelve months, your employment is evaluated and you are then made a permanent full-time employee. Once a full-time employee, you no longer have any ties or connections to the recruiter company that placed you.

With a contract-to-hire position, you are placed with the INTENTION of going from a contract employee to a permanent employee, although neither the recruiting agency, potential full-time employer or yourself are under any contractual obligation to make sure you convert to permanent employee status.

Contract to hire can be a great thing for an employee and an employer, or it can really hurt an employee. Let’s be clear here. The employee is the one taking the risk in a contract to hire, not the employer. That’s why the employer is finding this employee as a contract to hire, to “try before you buy” and find out if you are as great as you say you are, before paying you a nice salary.

The employee also gets the benefit of “trying before buying”, however, he/she is taking on a much greater risk in the process than the future employer.

Doesn’t sound all that great for a potential employee, does it? Well, it depends on the outcome of your situation. And in the case of a contract to hire position, there are really only 3 distinct possibilities that can eventually occur. Let’s break them down.

1. You convert permanent:

This outcome is obviously the one that occurs in the ideal world. In this scenario, you’ll go in and do a great job at your position and the employer will be pumped to bring you aboard as a permanent employee.

I’ve placed contract-to-hire workers, absolutely KILL IT at their jobs, and get brought aboard permanently before their original conversion date.

In this scenario, you’ll go from making an hourly rate on contract and then seamlessly get switched over to a salaried, full-time employee on a Monday, typically after working your last day as a contractor on Friday.

2. You stay on an extended contract:

Let’s say you signed on for a 6 month contract-to-hire and the 6th month comes around. You’ve been expecting to convert to a permanent employee, but your boss let’s you know that’s not going to happen.

It’s usually because you’re either very average at your position and your employer doesn’t need you in a full-time role, or because the company is going through internal changes and doesn’t have the money to allocate to another salary.

This isn’t the ideal situation because you don’t receive the benefits of a permanent salary position, but if you’re still working as a contractor, you’re still making money and there’s always a chance you’ll still go full-time.

This isn’t necessarily a positive outcome, but it could be worse as we’ll find out below.

3. The contract is not extended or you’re fired:

Worst case scenario, duh…

Typically this happens for two reasons, you’re really bad at your job or the company is going through some type of internal change and you unfortunately have the least amount of baggage for the employer to let go.

When it comes to firing a contractor, it’s a pretty easy thing for both the end-employer and staffing agency to do, so you have to make sure that you try your best to make a great impression.

Judging from my own experiences though, the people that get fired in a contract-to-hire position are the same people that would have been fired if they were permanent employees. These are the useless employees; the ones that literally sleep on the job, show up 2 hours late day after day, lied about their resume, etc. Getting fired in this scenario is something that’s your fault, not the fault of the employer or staffing agency.

For even more details on what the heck contract to hire is and how it relates to you as a potential source of employment, I’ve created this video below to walk you through the subject at a high level.

Why do companies use contract to hire

After going through the potential outcomes of a contract to hire job, you might be wondering why it is that a companies use this method? There are a few main reasons. Often times, contract to hire is pushed by the recruiting agency that a company is working with because it can be more profitable than simply placing someone directly with the company and charging a percentage of their salary.

Additionally, some companies like the flexibility of contract to hire because the burden of paperwork, benefits, and firing an employee all lie on the recruiting firm, not the employer.

This makes their lives a bit easier, especially if they’re looking to bring someone into the building quickly, or kick them out of the building equally as fast.

Concluding Advice

In today’s working environment, contract to hire is a pretty common thing. The idea of “try before you buy” for employers isn’t going anywhere in the near future and it will likely increase in prominence in the coming years.

My best piece of advice for anyone thinking about a contract-to-hire position or currently working in one is to bust your ass every single day of employment as a contractor. You can’t give your future full-time employer a reason to not bring you on permanently, you have to show them every day why you’d be an awesome asset to their team. If you’re not willing to do that, I would advise against taking a contract-to-hire position.

Don’t take anything for granted, don’t slack off. If you go in every single day with a bad ass attitude and kill your job during the contract period, you will get brought on as a permanent employee 90% of the time. I’ve seen this and I know this to be true.

Do you have any questions about your own scenario? Drop it in the comments section below. If you’re in this position now, it also might be good to see how you can negotiate with recruiters in a contract-to-hire position!

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59 Responses
    1. My name is alonzo linear,I have worked at my staffing agency for two years.The problem is,I have had job assignments one yr, eight mo,four mo,three mo. I come to work on time,do my job exceptional and I’am respectful. The problem is temporary employees are being used or caught up in a cycle where people are being used by the company or corporations. What I mean by this is they the company are using temp employees not to pay top salary.The temp service pays you 11.00 dollars per hour but the company hires in at 14.00 dollars an hour,and filter in paying insurance the company save all across the board using the temp agency as a unlimited supply of body’s,filter in at will employment today working man is working under a illusion,combine this with supervisors with no people skills or communication skills.The american worker and his family is falling further behind and the company’s get richer but still cry broke and after you but all this time in the temp service does nothing for you to get hired in,remember if a assignment lets you go they don’t owe the temp agency a explanation. Oh and while you at the same company you see people who get hired in with same job experience as and hired without going to the temp service.

    2. Cecil

      I understand what you are saying but here’s the thing…
      I was busting my ass and received complements then all of a sudden the employer escorts me off property NOT the contractor who hired and paid me. Do I have any legal grounds for wrongful termination?

      1. Me

        Exactly my situation. Just got canned with no recourse whatsoever. Large employers must be using contract to hire (as the article says) to avoid risk. I see “with the intent to convert to permanent” as a pretext: they can get away with avoiding not only paperwork, insurance and so forth, but also proper HR procedures.

        Is there any precedent for concluding that they are using the arrangement to avoid the law?

    3. Tamra

      Are recruiters required to share with the employee if the client wants them permanent? Can the client tell the employee that they want to bring them on or have discussions bout permanent employment?

  1. Wiley Post Wilson

    I’m in IT and have been offered a c2h position after a subcontractor I worked for went under. That company recruited me heavily after only a year at a prior job. Now it looks on paper like I’m job-hopping which can be a death sentence to a good career. So let’s say I’m one of the 10% who gets cut from a c2h position due to circumstances beyond my control. I just don’t trust the process…it seems like giving too much to an already untrustworthy business climate.

    1. Matt McCrorey

      This just happened to me. After 10 years of successful experience in my field at a few different organizations, I took a C2H job because the wage was so good (50/hr). But after just 6 weeks I was let go. Why? Well all signs point to political cross fire. My boss was gone 5 of the 6 weeks. And two of my coworkers were reporting on her performance to her boss. They are gunning for her job and saw me as competition. Now I’m interviewing for a new job – how do I explain only staying at a job for 6 weeks!

      1. Lisa

        Hello,
        I am currently at a full-time IT job, and I’ve been here for over 6 years. I earned a PMP, CSM and ITIL certifications in 2018. My current company does not pay the worth, so I have been looking and applying. I have been offered interviews but for contract to hire. Eventually, I do want to have my own IT project management consulting company, but for now, I need to get experience.
        Does anyone have any advice? I am not comfortable with taking a risk but the permanent interview offers I get are for more technical only positions.

  2. Babs

    Other than working my ass off, which is pretty much what I’m doing, what else can I do to influence the decision to convert to full time. In my case I was told the contract term is 6 months with possible conversion to full time or extension. My employer has already told me they would like to extend me (my contract expires in Jan 2017) and they don’t want to lose me. I was less than enthusiastic when they told me that although I faked a smile and tried my best to hide my disappointment. They told me I didn’t need to answer right away and to think about it.

    1. Brian

      This is a tough situation and I feel like I’m going through something similar. I’ve been at my contract to perm type of job for now 7 months and I have been doing a great job. They keep saying that they like me and all that. They had me interview for the full time role starting around the 6 month mark, instead of giving it to me. I had my 2nd and final interview role and depending on if they bring me on full time, I will have to make a decision on what my future is.

      Honestly, if you have been at the place for at least 6 months and that’s how long your contract was, I would start looking at other places if they decide to not bring you on full time. Find a job that’s actually a full time opportunity, if they don’t appreciate you enough to bring you on full time. Still stay at your current job, until you find a new one. I might do that myself if they decide to hire someone else for the full time role. I should hear by Monday if I’m being brought on full time.

    2. Ryan

      The same thing kind of happened to me. I was brought in at my company as a 6mo. Contract. Extended 3mo. Because they like my work. Then they wanted to hire but the company is now on a hiring freeze. So another 9mo. Followed by two more 3mo. Contracts. I am rather furious.

  3. Brittany Marie

    Rob,

    Regarding pay…I’ve been in a contract to hire for two months. The company has made room for me and opened a permanent role during an alleged hiring freeze. My direct manager stated, “You’re an asset to the company plus we’ll SAVE so MUCH money by not paying the fee beyond the aquisiton costs for breaking the contract”). I want a raise. I’ve lrrady saved the company $12,500.00 by teaching the PM how to negotiate; I’ve created a new software platform for collaborative work, and I’m worth it. Any thoughts on how to find out what they were paying the recruiting vompany to try and get the total fee they were paying.

    Thank you,

    BK

    1. Greg

      Usually it’s almost a 40% premium these staffing agencies charge. Don’t forget though, the staffing agency saves the company from paying for benefits and overtime, which eats into that 40%.

  4. Siobhan

    You’re missing something pretty big in #3:

    Many “contract” positions have the rule that you will bill hourly, not more than 40 hours per week. However, many companies using these contractors, expect that the contractors will be at their beck and call for free around the clock, and working-but-not-billing on evenings and weekends. While exploitative and illegal, this is a common scenario in at least one large company in my city due to the inherent imbalance of power.

    I have had a VP scream in my face that he would have me deported if I didn’ t work for free all weekend. I asked him how that would work given that I was born here in the US. I have known fellow contractors to be called racial slurs, have stuff thrown at them, and worse if they won’t work for free.

    Several weeks following this incident, I was told my contract would not be extended. I still see these coworkers socially, including my Director, who gives me truthful glowing references.

    My fault?

  5. Bob

    this article misses a couple of points. A) contract-to-hire or even just contract positions are rampant in USA IT departments, and still growing in number, therefore there must be a business sense to it that was not discussed. for example, how do IRS requirements for the hiring company differ for full-time perm employees than for contractors? B) regardless of how much or how little you get paid, you have no more security in your position than the high school aged kid who cuts my grass. you are completely at the mercy of the company who “contracted” for you, but you have no say in the terms of the “contract”, so for you it is not a contract at will; C) there is MUCH abuse of these kinds of contractors with little to know hope for permanent employment regardless of your fantastic performance in that position. United Airlines is a well-known abuser, but there are many others, and it shows just how non-existent are our labor laws for these types of workers. Company X was paying company Y $140/hour for my services and finally decided to offer me the same job but as a full-time permanent employee, unfortunately, they were only willing to offer $45/hour — yes, with benefits, but do the math before you respond. So you see, the money is available. Company X just refuses to share it with their employees. And after turning them down, I am still a contractor to Company X !! Go figure.

  6. Thanks so much for your advice about not taking anything for granted and not slacking off when you’re working on a contract that you hope to turn into a permanent position. I would imagine that any employer who hires contract laborers with the potential to turn into full-time employees would be looking for a strong work-ethic to make their investment worthwhile. Assuming the position is yours and letting your work go a little bit sounds like a surefire way to avoid getting that permanent position.

  7. Mat

    I am in bit different situation. If anyone can suggest what my options are . I am on contract to hire position in IT via recruiting agency. It was 6 months contract to hire. They attempted to hire me after 3 months by looking at my work but I asked for my desired salary instead of the silly contract I signed with recruiting company and negotiation did not go through. I told them I can work as contractor as long as you need. They kept me after 6 months and now it’s been 2 years me working there as contractor. Now they want to bring me on board with my desired salary but my priorities have changed and I do not want to go on board. What is my option? Would I be still obligated to go on board. They are really trying to identify indirectly why I don’t want to go on board and I told them I don’t want to settle. I can work here until you guys need me than you let me know. I went up to a point that i will not drop a ball on you and will at least provide advocate notice. Recruiter also want me to go on board so he gets finders fee. I am curious if Recruiter can claim loss if i don’t go on board from me.

  8. Teresa

    I had 2 contract job offers come in and took the one that seemed had a better chance for going permanent, when the recruiters said that the client wanted me to consider the job as an interview for a permanent position they had available on the same team. However, on my first week, the client was already interviewing to fill that role. Then a second position became available the second week and they were already trying to fill that too. Same job titles as mine. And I am the only contractor on their team. Feel bad that I wasn’t asked to at least interview for those spaces. To find out that I was contacting for a lady going on maternity leave and that she was not coming back, yet they were already interviewing full time candidates for that role the 2nd week I was there.

  9. Jane

    My exsperiance working as a temp to ” perm ” employee has been beyond anything I could have imagined.
    It has been almost a year , I was turned down with a generic letter from HR about 4 months in for a permanent position. The turnover for the same position I am still doing for permanent employees hired then fired or quoting exceeds 15 and the temporary employees at least 20 come and gone . I am the only one left standing. The company has had desperate campaigns looking for employees to hire to do the job I have faithfully, compliantly and adherenltly at 75 % the wage , no benefits as my new co workers .
    I have sat in a seat while a newly hired temps were given gifts during an appreciation week for employees while not receiving any after 8 months there only to watch these values employees be fired within the first two weeks of there employment.
    My temporary agency does not answer my calls , changed my tax allocations to the negative for me without permission and extended me with one day notice by a congratulatory email for 31 days .
    All while the company made several temps that just started when they show up permanent employees:)
    I have no way out , no paid time off , no answers stuck making next to minimum wage as a temporary worker with no record of the hard work , dedication and knowledge I’ve gained over the past two years – as my temporary agency stated they are not your employer no reference or work history will exist for them .
    Knowing what I know now I would advise against temporary employment at least in my venue if you are someone who possesses “old school ” work ethics and treats your job as if it was your own , you may feel a hard hit realization that the world is not quite in line with your values.

    1. Terry Ruby

      Jane
      Keep your Chin Up.
      You never have a rainbow
      Till u have the RAIN.
      Jane,
      I’ve been there there last3 yrs
      Temp services
      Got hired this past Fri.
      Permanent

  10. L

    Something you forgot to mention is your contract salary vs. your permanent salary. They’ll know you want the position, but in no way are they contractually obliged to pay you the salary you were making as a contractor. So you could take a deep pay cut going permanent because they know you’ll have nothing else to leverage. I’m currently being offered a contract to hire and I’m thinking of not taking it. I don’t like the idea of the unknown in three months.

  11. Rob

    Like much of you, I disagree with much of the assumptions of this article. It presumes that companies who engage in Contract to “hire” will fulfill their promise at whatever designated time. But here are my lessons from my experience in Contract and C2H.

    1 * In my experience you don’t get full time unless you are invaluable after said time and you make sure they know it.

    I started from college in temping and managed to secure my first C2H after 6 months in healthcare only by being a bad-ass at the job and forcing their hands. One person was leaving and I reminded my manager every week in person (and the HR lady) of my intent to fill that role. I was a P.I.T.A. Persistence works…mostly.
    But the lesson is: if you have no leverage, you aren’t worth fighting for. If they know you blew past the “hire” date and haven’t left by then… you’ll never leave. So no reason to convert someone who doesn’t value themselves.

    2 * Learn all you can from your current contract and DOMINATE your job along some semi-related or unrelated ones related to the business.

    In the event they do hire you, you’ll have an impressive HR interview and could negotiate your salary well. Just in case they don’t deliver, LEARN ALL YOU CAN from the start, re-title your job if need be to market standards, and move on to greener pastures. USE THEM as much as they planned on using you and go out to advance your career to a better job. You’ll be pursued more and maybe get full time out the gate from a better company.

    3 * Don’t fool yourself into thinking a specific industry will hire a generic office worker.

    My experience in Oil and Gas told me that they never want to hire anyone that isn’t a CORE asset to the business (Scientist, Banker, Trader, Engineer, Chef… etc.)
    You can tell who they would retain by the background of your manager & VPs. If you work as an assistant or IT guy and your managers are O&G Engineers… forget it. They value Engineers and Scientists (or whomever) like them more than generic business labor. So bust your ass like #2 and seek better prospects.

    4 * If they treat you poorly (like a redheaded stepchild) or don’t deliver on their promises, take the money and keep looking.

    Their dirty little secret is, it’s better to keep you off the Administrative budget and essentially reclassify you as an instrument instead. Yes, I have been in the position of C2H but was told “It wasn’t a good time to convert” due to budgeting. Yea….budgeting in terms of balance sheet accountability. I saw exactly what they were laying out for me bi-monthly and it was insane. But only because there was a separate account to fund it. Faced between justifying a ballooning HR budget and buying office equipment… I was essentially the copier they kept around for several renewals.

    4 * Another thing… If they didn’t hire you the first contract… don’t try them again.

    Network like your life depended on it. Keep in contact with everyone who liked you at work and school friends. If they tell you a company is bad for X or Y reason, listen. You can avoid heartache and a bad career move unless you’re broke… in which case #2 again. And if they offer you another C2H or just pure contract… STAY AWAY if you can.

  12. Temporarily Travis

    Love my temp job! I slack off all the time and they extended me from 6 months to 12. It is awesome not having to buy into the twisted “company culture” because hey, it’s not my company and I don’t care. I honestly may never have another “permanent” (no jobs are really permanent, anyway people!) job ever again. Temp work is the good life!

  13. Kendall

    Rob, thanks for the helpful article. I also really appreciate the real-life feedback from the Commenters. I’d like to get some insight. Here is the background:
    Tomorrow, my hubby is doing his third interview for a 6 mo C2H position for a newly formed cyber security co from acquisitions. Like Rob mentioned, 90% of recruiters contacting him are about C2H opportunities.

    The agency recruiter has let him know he’s the ONLY applicant – internal or external, so unless the interview doesn’t go well, or he doesn’t want it, it should be “go”. This situation could go be great or not so much. During his phone interview w/a Sr Exec, he realized the role is far greater, with more responsibility than the req is written – or he’s being paid. He came away thinking he should be paid double. The recruiter is being squirrelly about $ and salary conversion. Lastly, he just got called for a direct hire dream job w/a 30 day interview cycle.
    So – here are some questions:
    1) Since the employer & the recruiting agency are under no obligation to hire or extend him, etc, does he have the same options?

    Is he contractually bound to stay the 6 mos? This article started “before you sign…”. If he isn’t contractually bound, he could theoretically be available to interview for a direct hire. Thoughts?
    2) Is the recruiting agency 40% mark-up standard? He’s going to get $75/hr.
    3) Who negotiates the conversion salary, the agency or the ? Since he believes the role is larger than spec’d to the agency, which the employer may have done to restrict fee to agency – he doesn’t want to be locked into a salary.
    Thoughts?
    5) Has anyone been a C2H WITHOUT a billable limit of 40/hrs a week?

    Am I missing anything? Thank you!!

  14. Matt Morgan

    I’ve been with a Company for 7 months as a Temp. I was told by both the company and temp agency that I’d be brought on full time after a 3-month period. Then it was 6-months. Last week I found out that they’re not bringing me on because of “Budget Constraints.” I’ve busted my ass for this company, haven’t taken any PTO (because I don’t accumulate any) and don’t see why I should stay on. They say that they’re considering their needs and I’m calling bullshit on that one.
    It’s a sorry situation and I’m not going to stick around to see what happens next. While the pay is really good I don’t get to enjoy all of the benefits that all the full time employees enjoy. And one more thing, I’m the *only* temp employee (Windows SysAdmin/Oracle DBA/Weblogic DBA) in the company currently.

  15. Oleg Dontsov

    But I got fired as a contractor not even starting to work? Doing everything I can? But was not able to perform, demonstrate my ability to complete yhe work?

  16. Kathi Bruestle

    I am on 90 day contract and on about 70 days. I was hoping to be hired sooner. No word about if they will hire me. Now I was offered my old job back at an offer I cannot refuse. Do I give notice now? Help! Or wait til they offer me the job which is who knows when? On my 90th day perhaps?

    1. James Balogun

      Hi, I believe the best thing to do would be to let them know that you have received an offer to rejoin your old company, but if they are willing to match the offer and give you a contract sooner you will consider staying with them. Hope the advice helps 🙂

  17. I can see how it would be cheaper to hire a recruiting company instead of create a position for it in the company. It probably saves a lot more time too, while the company can focus on other things. Thank you for the very helpful recruiting information.

  18. Tracy Taylor

    C2H is an unbalanced relationship by its essence. Let’s look at the traditional perm hire arrangement. Both the employee/employer can terminate the relationship for cause and both have something invested in the process. The employer spends time and money looking for and developing a good team. The employee works harder to do a good job knowing they have benefits, pto, sick days, holidays, and security based on their on their performance.

    On C2H, regardless of the contractors effort, there will not be benefits, holidays, PTO, sick days, or any security. At any point, the employer can tell the contractor to go home and not come back, with absolutely no investment. Most employers will not spend money training contractors, even team building exercises, so the employee quite literally leaves the company with the same set of skills that he/she started with.

    I was in a C2H position once and had the misfortune of breaking my ankle. Because I was off my feet for right after I broke my ankle, the contract was finished. Because the contract was finished, the benefits I was paying for through the recruiting agency ended immediately. Suddenly, I was unemployed, injured, with no benefits and medical bills because I let a recruiter talk me into a C2H position.

    The only people who benefit from this arrangement are the employer and the recruiter. Don’t be fooled.

  19. David

    What does one do in the situation, where your filling out a new job application and it asks you the reason for leaving? But your past employer was a staffing agency and agency told you “There’s no job listings at the moment” and they put you on the waiting list. Obviousl, your not going to wait for the agency to call u while the bills pile up.

  20. Helikzhan

    I’ll explain this as easily as it can be stated. When politicians and corporations were allowed to bus people into the country by the millions to replace homegrown IT workers the standards in IT dropped like a rock. The shareholders, the CEO, the politicians are all behind this effort to stab middle class Americans in the back. IT at one point was the easiest transition for working class to become middle class. You think a 100k / yr salary today is a big deal? Imagine what you’d be getting paid if the visa programs never came into existence. Imagine the demand if we had 3 million less IT workers in the country. Yes, you’d probably be booking $300/hr easily on 4 years experience. If not more.

    It’s a tragic example of what happens when labor laws are shunned. Yeah, some people think that not having the visas here would stifle innovation. Those people are fools or liars. If anything the degenerating IT market today is driving away many creative individuals. People who had the mind for IT that seen what it became and skipped it. I know because I was one of them.

  21. Lee welser

    I got a job through the temp services I haven’t started yet but I found a better job. Can I tell them I can’t do the job cause I found a better one. And will the company take me back if I turned down the job. For if I ever lost my new job

  22. Lee welser

    I got a job through the temp services I haven’t started yet but I found a better job. Can I tell them I can’t do the job cause I found a better one. And will the company take me back if I turned down the job. For if I ever lost my new job. So if riddell accepted me as a temp but I say I can’t do it found a better job will riddell hire me back as a temp if I loose my new job.

  23. Joshua Cronin

    Are agencies required to tell their contract workers the value of their contract if asked by the one the contract involves?
    Ex: worker wants to know his contract’s value that party 1 is going to hire him for from party 2 (the one holding the contract) Temperary hire to full-time. Can the worker request for the value of the contract that involves him as the worker?

  24. Janice

    My background has been a contractor for 15+years. I want to go full-time, but it seems that I feel corporations are discriminating against my past short-term contracts and can not get an interview? I really do not want to do the contract-to-full time position, because those companies I contract for are not the companies I want to work full-time for? I thought to network with the people who work there, but that is not an easy thing to do because it takes time to build a relationship with the few that respond back? I have been looking nationally for full-time positions.

  25. James

    I read your well articulated article; however, I’m looking for a way to calculate converting from a permanent position into a contract / contract-to-hire where I’m assessing the right amount of risk premium on the opportunity’s time-frame.

    I can easily calculate what increase in rate I’m looking for based on my current total comp, factoring in health care, pension, 401k contributions, etc; however, I don’t know how to properly value the % risk premium for the length of the contract, regardless of c2h, for an hourly rate.

    If you could write on how to properly evaluate the risk premium for a shorter-term contract, I the internet would thank you. This could also be extended to factoring in anticipated overtime as well, considering most hourly jobs tend to include a small percentage of overtime which can translate into a significant increase.

    E.g. (made up #s):
    Let’s say you currently make $120,000 a year total comp, and someone comes along and offers a c2h 6-month contract. You estimate to make the move, you would need
    120,000 * .20 (standard increase to move to a new FTE) = 24,000 + 120,000 = 144,000. if corp-to-corp factor in another ~30% for taxes (pre-2018). This is where I would apply the risk premium, accounting for any potential overtime, but I’m uncertain as to how to calculate the risk premium.

    The IT market is a seller’s market right now. So getting this wrong can be expensive in the long run.

  26. Nick

    What advantages of Contract? I don’t see any. But there a lot of disadvantages: no sick days, no PTO, no vacations, no 401k, no insurance, etc.
    What advantages for employer? Less money? Ha-ha! My employer pays to my recruiter 17% more than my hourly rate(which is almost $50). Is 17% not enough for pay all benefits?

  27. Anonymous

    Hi! My husband is currently working in a 6 months contract position which is (extendable) in Samsung engineering. Are there any chances that he will be fired off after 6 months? What is extendable contract mean? I’m so worried. Please help!

    1. Billy corgan

      BIg chance he will be fired sometimes they don’t tell you. It happened to me at amazon. Prepare for finding another job.

  28. Maria

    Would you advice me to just focus on doing a good job every day or try to be noticed every day by asking questions, or just talking to the boss all of the time?

  29. @stancePersi

    Hi!
    I signed with, and am now on my second C2H manufacturing position as a packer.
    I’ve been there 7days. Love the job, hard, fast paced work, difficult to keep up without tips and pointers to be a success. Starting day 2, I was BERATED constantly, yelled at about asking “why” questions, and seems as though my trainer is making a special point NOT TO TRAIN ME APPROPRIATELY. She said I didn’t need to know any of that? just work.
    It seems I don’t need to know how things work to be more successful, or why the machine is down, where work supplies are located in the building etc.
    I’ve been told by my trainer several
    times that If I don’t get better, they’ll take her money away/charge her for machine malfunction downtime/ product waste/or fire her. By day 6, I had to say something to management about the huge language barrier between me and my LAOTIAN born trainer. I had slid so far behind by day 5 for lack of understanding her broken English.
    Now I’m targeted. Day 7, they sabotaged my machine to malfunction all evening. Carton taper/feeder so tight cartons were being side crushed on push through, work table/carton jack raised too high, etc. I’m sure of this as I was just there 2 shifts prior, and never happened before on 5 prior shifts. My relief guy was shorter than me. I was told training would be 2-4 weeks, not 2 days, with the expectation of being an instant perfect, know all employee by shift 2.
    I’m pretty sure I’m not going back. Complete disaster, all management are involved in this sabotage, complicit. You can tell by their stares, snardy attitudes.
    Can I just not show, and never have anything to do with Randstad again?
    I will not spend another evening being treated like a criminal for not being a perfect employee after 2 shifts, as the 7th shift
    last night being a total sabotage! I know this because a young gal who was hired 2 months ago stated she was trained 2 days, then they just quit training her. I caught her filling up my sidewall paper conveyor to help me out?
    “Hope I’m not liable and get sued” is my question. Done with this C2H temp agency lie.

  30. I’ll leave this danger that I didn’t realize. I was always well employed at great firms. Getting a new job was easy. I went to temp work because I needed more time with the family. Now, recruiters see that I’ve taken temp work and all they want to do is present more temp opportunities. Perm roles see years of temp opportunities and shy away.

  31. Kathy McKenna

    6 weeks Into a 6 mos c2h. The company decided they didn’t need me after all. Said they liked me and my work product was excellent. So is this a contract or not a cobtract? Seems they should have some responsibility.

  32. jessica

    Recently I am seeking database related jobs, and found most of them are posted by IT staffing companies. Can I understand people who are seeking jobs have very less chance to land a database job if they don’t want to deal with staffing company at all? Even for the positions that were posted my companies themselves, is it possible that company recruiters only respond to resumes that submitted by stuffing companies? Don’t even have a look at the resumes that submitted by job seekers?

  33. mam

    The author excludes a 4th scenario:

    Contractor does an amazing job, is quickly put in a position of seniority/management overseeing many people, and is paid well W2/hourly. After the ‘try out period’ (6 mos, whatever) they are offered a ‘permanent position’ but with total compensation (health, bonus, 401K, etc) at 60% of contract annual income (including the few weeks job search). Employee declines (the stunned look on the HR person’s face was precious). Negotiations may or may not ensue. Shrug.

    ‘CTH’ is not all that if you’re a hired gun and have no trouble finding good work. Typical recruiters don’t face that type of contractor normally.

  34. D Will

    Currently I am in a contract to hire position. My manager through the company that I will potentially be working for has expressed on multiple occasions that he wants me to be here. Things could always change and I completely understand that. My question is around salary. My manager does not know how much I am being paid, the company is simply paying the fee and the recruiting company is paying me. Could this possibly lead to me getting a pay increase at the end of the 3 months or a pay decrease? Also, are there questions I should be asking my recruiter to help in this process?

    Thank you!!

  35. Billy corgan

    I hate what the world has turned into . This is the biggest sack of shit i have ever heard . I can’t beleive the world has turned into this. This mean s they have screwed up horribly. Back in the day temp agencies were a thing of the past. It was a once in a while thing. Full time jobs you would work with till you retire there actually was social security. More and more greed everyday they get you in there to clean up there mess Ive been through this many times. Fuck big corporation. I don’t even know what to do i keep going to job clean there mess up then get let go shampooi rinse repeat. The american people deserve better than this this is not what our people fought for. Greedy fat cat companies need to be overthrown now.

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