ValCom White Paper Sample

In this and any market, companies will still have hiring needs, especially in technology, and the contract-to-hire model is going to dominate the way managers hire. What is contract-to-hire and what value will it provide? Contract-to-hire is a highly flexible hiring program that delivers successful results. If you’ve ever made a permanent hire in the past that failed (and who hasn’t) you may of asked yourself, “how did I miss this or that?” or “what could I have done better in the selection process?” Straight permanent hiring can be risky.

Candidates have become excellent interviewees; they’ve practiced and anticipated questions to be answered and they’ve done their research on the companies that they are interviewing with.

They know the buzzwords to use. What seemed like a great hire can suddenly disappoint 30-60 days later as red flags become apparent; whether it be a personality conflict with your teammates (40% of positions are refilled because of this), or a lack of the technical skills that you thought the person had. The cost-to-hire ratio is much higher then the actual candidate’s salary. After you factor in sourcing costs, recruiting/interviewing time, on-boarding, benefits, unemployment and cost to replace, an 80K person can really cost you 150K+ by the time you are all done. Current new unemployment extensions and Cobra laws add on an additional budget strain to all organizations. Can you take those hiring risks on if you’re not confident about the final outcome?

Contract-to-hire terms are typically based on a 90 day conversion term; however there is flexibility with the conversion time as some companies prefer120 or 180 day conversion terms. This contract time gives organizations a window of knowledge about a candidate that they don’t normally get without taking on all the hiring risks associated with a new hire. After the agreed-upon conversion time, the hiring manager can now make an educated decision on whether or not to permanently hire the candidate.