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The Rise of Contract-To-Hire for Small Companies On The Rise

Joseph Nordlinger's picture

The use of contract-to-hire workers has been on the rise in recent years. There are numerous reasons driving the popularity of this type of workforce, but one is particularly clear—businesses want to be sure they are making the right hiring decisions.

I recently read an article in The New York Times that discusses how smaller businesses have been hiring workers on a temp-to-perm basis to get an idea of candidate performance and fit before deciding to hire someone full time. This way, companies can get a glimpse of how things will work out and incur less risk in the process. Hiring on a trial basis allows companies to get an idea of factors that cannot be conveyed through a resume, such as how someone will fit with the company culture. 

Mona Bijoor, founder and CEO of Joor, explained to the Times that the traditional hiring process won't necessarily indicate how they will perform on the job. Joor hired seven temporary workers for its data operations process. By the end of the 30-day trial, the company was able to hire three workers who demonstrated that they were a great fit.

Larger companies may have more room for turnover, but for smaller companies that are still growing the effect could be damaging, making temp-to-perm arrangements an attractive option. By giving workers a trial run, companies can make more successful hires and candidates can decide whether or not the company is a good fit for them before accepting a full-time job.

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