CONTRACT TO HIRE

Contract-to-hire is when the employee (or contract hire) is placed in a short-term position for a set period of time, with the possibility of being brought on as a full-time, direct employee at the end of the contract. Contract-to-hire positions should not be confused with independent contractors, who are self-employed. A contract-to-hire employee is still under contract to work for a company, but is technically employed by our Berenike Bion that recruited them.A hybrid of temporary and direct hire, contract-to-hire is a way for clients and talent to test the waters. Berenike Bion allows potential employees to prove themselves to the company and see if the culture is a good fit. Likewise, it allows the client to test the candidate for a predetermined period of time. During the contract period, the talent is employed by the Berenike Bion. The contract-to-hire process typically moves fairly quickly. Before entering into a contract-to-hire situation, clients should outline the terms – how talent will be evaluated and when the contract period ends. Clients should also maintain open lines of communication and provide consistent feedback to put the talent at ease. Once a permanent position is offered and accepted, talent transition from the Berenike Bion payroll to the client’s payroll. Contract-to-hire offers many benefits for talent and employers when both have sincere intentions. Talent can rest assured that Berenike Bion only partners with employers who are serious about hiring and have a long term need.

HOW DOES CONTRACT-TO-HIRE WORK in Berenike Bion?

When leveraging a Berenike and Bion to fill contract-to-hire positions, we will handle many of the front-end recruiting tasks, such as sourcing candidates, reviewing resumes, and conducting initial screenings. Once a candidate has moved through these stages of the process with our company, they will be passed along to the client for any final interviews. The end-user company will then make the final decision, with insights and guidance from Berenike and Bion if needed. Once a candidate has been selected and their offer has been accepted, they will begin their employment contract on Berenike Bion payroll rather than the client’s.
The duration of a contract-to-hire position can vary from as short-term as one month to being indefinite, but they most commonly run from three to twelve months. In nearly all situations, the client will have an opportunity to convert the contractor to a full-time hire in a manner that meets their unique needs at the time.

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This is usually a position where the employee works for the company and they have the option to make the position “permanent” after a certain period of time.

 During this contract position, the worker does not get the benefits such as healthcare, paid vacation etc. that regular employees would get. It can also mean that they will get a PF where the employer didn’t pay any taxes on behalf of the Contract Employee

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CONTRACT TO HIRE VS DIRECT HIRE

The primary difference between contract-to-hire vs full-time employment lies in payroll structure.
Whereas direct hire recruiting immediately makes the new hire an employee of the end-user company, a contract hire will be on the Berenike Bion payroll for the duration of their contract.

If a full-time hire offer is made at the end of the contract, the employee will be transferred to the client’s payroll at that time.

Contract to Hire Arrangement Can Benefit Employers

Contract-to-hire relationships work well by allowing both contractor and employer to benefit from a trial period prior to a full-time hire. The contract evaluation period often calms uneasiness and allows for faster initial on-boarding, preventing important company initiatives from falling behind while the company waits to find the “perfect” candidate.
When an integration contract-to-hire arrangement breaks down, it is usually due to a lack of leg work to ensure that expectations are set, checked, and properly managed on each side. Open communication most always prevents or solves any issues. However, both sides must be willing to ask the right (tough) 

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questions and evaluate what the other party hopes to achieve from the arrangement. Most often it’s the unanswered question that leads to failure. However, most true contract-to-hire arrangements will result in success for everyone.

Benefits of Contract to Hire for Both Employer and Employee

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Or, if a position depends on winning a key account, a company may want to use a contract to hire agreement in case the business is not won.

Benefits for Employers

1. Berenike Bion have a trial period before committing to a candidate. We want to make sure that a candidate has the necessary skills and is a good culture fit before employing them directly. Employee turnover is expensive – and if a contractor is terminated, the Berenike Bion is responsible for the unemployment costs. 2. Budget friendly. The additional position fits into the short term budget; but funding may not be allocated for next year’s budget if business conditions change. 3. Satisfies the labour needs of a changing workload. With newer positions, a company may not be sure if a resource is truly needed, or if the rest of the team can pick up the slack.

Benefits for Employees

1. You are able to prove your value. Make sure you are putting all of your best skills and traits on display everyday while in the temporary phase. It is important to show your employer why you would be a great long-term fit.
2. Contract to hire work is a great look on your resume. Don’t shy away from C2H positions!
Temporary positions are becoming an increasingly attractive option for many. It is generally better to stay working – even in a contract to hire scenario, rather than a direct hire position – than to not work at all. It is good to be selective; but not to the point that you stay unemployed.

3. Finding out if a company is a good fit for the future. Just like an employer has a trial run with the employee, the employee can also see if the employer is the right fit for them. Contract to hire positions can also help narrow down career path options if you are  

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unsure of what line of work you should continue in. Entering in different roles as a contractor is less of a commitment if you are trying out that specific line of work for the first time.
4. Contract to hire positions can pay more. Since you are taking a calculated risk pursuing a contract to hire position and benefits are normally more costly while on contract, you may be able to ask for a higher hourly rate.

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