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Direct Hire or Contract to Hire

Are you searching for a job or to fill an open position? If so, it’s important to know and understand the difference between the types of employment opportunities; Direct Hire and Contract to Hire. Each is designed to fit a specific need and knowing which will serve you best is key.

What is Direct Hire?

A direct hire is exactly what it sounds like. This is an employee hired directly by a company. This also means they are not hired on a contract basis. A direct hire employee is one that begins work on the company payroll instead of on the payroll of a staffing firm like Stratice.

This type of hire is ideal when an employer is looking to fill a long-term need. Direct hires are your more typical type of employment in which the candidate is hired full-time with company benefits. Stratice can be involved in the hiring process but leave onboarding up to the company once an offer has been signed.

What is Contract-to-Hire?

Unlike direct-hire, contract-to-hire employees are not on the company’s payroll but rather on Stratice’s. These employees enjoy Stratice benefits, and the client doesn’t have to hassle with bringing on or letting go of a new employee. Typically, these jobs are set for a specific amount of time-based on the contract company’s needs. When the allotted time is complete, these employees will likely be given the option to either begin working full-time with the company, be granted a renewed contract or the two parties decide to part ways.

Contract-to-hire is a way for both the candidate and the client to test out the partnership before entering into a long-term agreement.

What are the differences?

  • Contract-to-hires are contracted, short-term (1 year or less) positions, whereas direct hires are commonly more long-term positions.
  • Contract-to-hires are employed by Stratice and receive Stratice benefits, whereas direct hires are employed directly by the company and are on the company’s payroll.
  • Contract-to-hires have an end date in sight allowing the client and candidate to test out the position before fully committing.

Which is better? 

Saying that either direct hire or contract-to-hire is better than the other isn’t quite as easy as you would think. Both offer different benefits depending on the situation at hand. A candidate should consider what type of position they are seeking out as well as how big of a commitment they are ready to make. Companies must consider how quickly they would like to fill an open position, direct hires typically take a bit longer to onboard. They also should ask themselves how important it is to them to make sure they find the perfect fit before hiring.

 Whether you are looking for a new position or looking to fill your open position, Stratice can help! We have talented recruiters that can help you find the right fit for you. Give us a call, and let’s get started!

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