Contract-to-hire engagements
A contract-to-hire engagement starts as contract staffing and ends as a permanent hire. The worker begins as a W-2 employee of Recruiters Workforce assigned to your program at an hourly bill rate.
At an agreed point, commonly after three to six months, you offer the worker a permanent position on your payroll and pay a conversion fee set out in the original agreement.
The model suits a permanent need where the hiring manager wants to confirm fit, clearance timing or budget before committing. It is also used when a program's permanent headcount is expected but not yet approved, so that the work starts while the requisition moves through the employer's process.
How the engagement works
- Who employs the worker
- Recruiters Workforce during the contract period, as W-2 employer of record. The client from the conversion date, as a regular employee on its own payroll and benefits.
- How the fee works
- An hourly bill rate during the contract period, then a conversion fee on hire. The agreement fixes the conversion fee in advance and normally reduces it in proportion to the hours already billed, so that a longer contract period lowers the fee.
- Typical duration
- A defined evaluation period, usually three to six months, after which either side may propose conversion. Conversion earlier than the agreed point is possible at the fee the agreement sets.
- When it fits
- A permanent seat where fit or budget needs confirming, a program with headcount pending approval, or a candidate relocating who prefers to start on contract.
What the employer receives
The same screening and written submittal as any other engagement, with the added confirmation that the candidate is willing to start on contract and convert. The agreement states the bill rate, the evaluation period, the conversion fee schedule and what happens if the worker is released before conversion, so that the decision to hire is an administrative step rather than a negotiation.
What the candidate should expect
An hourly rate during the contract period and a salary range for the permanent position, both agreed before submittal, so that conversion does not reopen compensation. Benefits during the contract period through the employer of record, then the client's benefits on conversion. The evaluation period is stated in the offer, and the candidate is told what conversion depends on.
Questions about contract-to-hire
What happens if the program decides not to convert?
The assignment ends at the close of the contract period, or earlier under the notice terms of the agreement, and no conversion fee is due. The worker is told the reason where the client permits, and Recruiters Workforce works to place the worker elsewhere. Because the evaluation period and the decision points are stated in writing at the start, this outcome is rare and rarely a surprise.
Does a cleared candidate's access transfer at conversion?
Eligibility stays with the individual. Where the client sponsored the worker's access during the contract period, nothing changes at conversion beyond the employer's own records. Where access was held through another organization, the client's security office processes the change, and the firm flags the timing in the submittal so that the conversion date can allow for it.