The so-called “Gig Economy” is a growing trend. The numbers are stunning: About 40% of the U.S. workforce – up from 31% in 2005 – take part in the gig economy. But for technology companies and departments, hiring permanent staff is the better solution in many cases. Even better – getting to test-drive staffers before you hire them. We’re talking about Contract-to-Hire Staffing, and Connection is your go-to source to find the right people for the long term.
IT Hiring: Use Contract-to-Hire to Avoid Costly Mistakes
You know your company needs IT workers, but hiring them is a significant investment. And what if you don’t like their work, or they’re not a good fit?
It’s a dilemma many employers face. A 2015 Deloitte study found the average cost of hiring an employee has reached $4,000, and the average time it takes to hire one is 52 days. Once they’re in, you’d hate to ask them to leave and start the process all over again. Plus, there’s a good chance you’d have to pay unemployment benefits.
One solution is to use a contract-to-hire agreement, in which a contractor will work for you for a set amount of time, and then you decide whether you want to keep them around for good. That gives both you and the worker a chance to know each other before making a major decision. Since the contractor is already there, you’ll see exactly how they perform the kind of work you need.
The arrangement also allows you to onboard quickly, so that you don’t fall behind on your projects while you get bogged down searching for a “unicorn” employee (who may or may not exist).
From Washouts to Rock Stars
More companies are turning to contract-to-hire arrangements because the traditional hiring process involving resumes, interviews, and references doesn’t guarantee a good fit.
“One bad seed can really have an impact on your culture,” said an executive who uses contract-to-hire in a New York Times interview. Only one in three of her hires were working out before she switched to a contract-to-hire system. Now, she says she’s getting “rock stars.”
Of course, you could just keep using contractors instead of hiring permanent staffers at all. Though they get paid a higher hourly rate, you don’t have to pay them benefits, and you gain flexibility.
But for some functions, employees are a better choice. If workers feel they’re part of a team, they are more likely to take pride in their work and go the extra mile for you. Once you train them, they’ll know what to do without much supervision, and you’ll know you can count on them to be there when new assignments come in.
Benefits for Contractors
Contract-to-hire can benefit workers, too. It’s not easy to get a posted job, and even highly qualified candidates can feel like a number, filling out lengthy application forms and sending their resumes into the void, never knowing whether a recruiter or hiring manager will spot their aptitude and pick them out of a huge stack.
But if you give them a shot as a contractor, they have a strong incentive to catch on fast and turn in an excellent performance so that they can get hired. Once they have demonstrated that they can do great work, they will have a better chance of negotiating a higher salary.
And if you decide they aren’t the right choice, it’s fast and easy to start the contract-to-hire process again.
Help is Here
Connection can help you “field test” technology talent so you can make a strategic decision based on your environment and the fit of the individual. Among the benefits:
- Cost-effective, low-risk way to recruit with Connection’s 90-day, no conversion fee option
- Ensures both the employer and the candidate are satisfied before any commitment is made
- Flexible length of contract for the hiring programs
For more information on other IT Staffing options, take a look here.