Some Definitions: Straight contracting means your project will end, and the person will be let go. This person is usually employed by (and paid) by a third party agency, either as a recruited hire, or a payroller.
Contract-to-hire (a.ka. temp-to-perm) means a new-hire will work through an agency for a period of time, and at a certain point, they might be hired as a permanent employee.
Additionally, contract-to-permanent hiring spreads out the recruiting agency's fees over time rather than in a chunk, like Direct-Hire recruiting normally does.
Options to Consider:
- You don't have to hire everyone: Many companies--especially engineering firms and startup technical companies--are willing to leave their employees on-contract indefinetly. Especially if they prefer that relationship, or if the benefits through the agency are better than the company could provide on their own.
- Payrolling contractors you find on your own is a good way to get the benefits of contracting your contingent workforce, while also saving money.
- It may be difficult to bring in talent that are already working somewhere else, if your opportunity is contract, not direct-hire.
- Exclusive Agreements are still available with contingency agencies.
- Understand the terms of hiring. How long until your contract expires for each hire (if ever)? Can you pay a reduced finder's fee to "buy out" the contract if-needed down the road? How is that calculated?
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