Contract-to-Hire vs. Direct-Hire – What’s the Difference and Why Should It Matter to You

A job is a job, right? Yes, this is true, but did you know there are different types of employment. Two of the most common types of employment are direct hire and contract-to-hire. It is important to understand what each means, the differences between the two and why it matters.

What is Contract-to-Hire?

An individual who is contract-to-hire does not work directly for the company, but rather works through a staffing firm for a specific amount time according to the contracting company’s needs. At the end of the established time period, the company can either establish a new contract, hire the employee full-time, or end the professional relationship. In most cases, contract-to-hire employees can convert to full-time positions if both parties agree it is the right fit.

What is Direct Hire?

A direct hire is an employee that is hired directly by a company. This type of employee does not work through a third party or on a contract basis. When an employee is hired directly by the company, they start out immediately on the company’s payroll instead of the staffing firm’s payroll.

What is the Difference Between Contract-to-Hire and Direct Hire?

It is important to understand there are significant differences between being a contract-to-hire employee and a direct-hire employee. Differences include:

  • Contract-to-Hires are typically contract positions, whereas direct hires are most commonly full-time positions.
  • Because direct hires are long term, the hiring process tends to be slower than positions which are contract-to-hire.
  • Contract-to-Hires are not eligible for company benefits, although they may be eligible for benefits through a staffing firm. Direct hires are eligible for company-offered benefits.
  • Being a contract-to-hire employee offers you the opportunity to vet a company before you commit full-timely.

Why Should it Matter to You?

When you start the job-hunting process, you should consider whether you are open to being a direct-hire candidate, contract-to-hire candidate or both. There are benefits to both and the decision depends on what you are looking for in the moment.

You might consider a contract-to-hire position if you are:

  • Looking for a contract position
  • Looking to vet a company before you commit
  • Testing the waters in a new career field

Choose the Leading Staffing Firm in Texas for Your Next Job Hunt

Whether you are looking for a company willing to direct hire or you prefer a contract-to-hire position, RESOURCE Staffing can help you. If you are looking to become a direct hire employee, our staff will work with you to make sure you are matched with a company that fits your needs and career goals. If contract-to-hire is more your cup of tea, RESOURCE Staffing offers great benefits when you choose to partner with us. Contact us today to meet with one of our dedicated specialists who can help you find the perfect job to fit your needs.