What is Contract-to-Hire?
Contract-to-hire is a staffing arrangement where a worker is placed on a temporary contract with an agreed-upon option to convert to a permanent, direct employee of the client after a set period.
Why does Contract-to-Hire matter?
This arrangement lets clients evaluate a worker’s fit and performance on the job before committing to a permanent hire, while giving workers a paid trial period with a path to permanent employment.
How does Contract-to-Hire work?
The agency places the worker under a contract with defined terms (duration, conversion date, and sometimes a conversion fee), and if both sides agree at the end of the contract period, the client hires the worker directly, often with the agency invoicing a conversion fee.
Frequently asked questions
Does the agency get paid when a contract-to-hire worker converts?
Typically yes, most agreements include a conversion fee paid by the client when a contractor converts to a permanent hire.
How long is a typical contract-to-hire period?
This varies by role and industry, but three to six months is common before a conversion decision is made.
How BrightMove helps
BrightMove tracks contract-to-hire placements through conversion, including billing for conversion fees when a contractor goes permanent. See BrightMove’s Back Office billing and invoicing.