We decided to try something new, so from time to time we’ll look at some hiring trends or aspects of the hiring process that may be new or just a new twist on an old idea. Understand that this will be completely sporadic, but should you have some issue or topic that you’ve encountered along the way let us know and we can address it as well.

Currently we are seeing an up tick in the number of companies who want to hire exclusively on a Contract to Perm rollover (C2P) basis. Now this isn’t new since they’ve been doing this for years, but historically the reasons have been that they either don’t have a Full Time Employment (FTE) headcount or simply they are trying to finance the recruiting fee over a 6-12 month period (without any actual finance charge). However, what’s changed is in many cases they do have an FTE positions available as well as the ability to pay a recruiting fee. So why the change? Well, they realize that as the availability of talent in the market place gets tighter they will have to bring on candidates who aren’t exactly what they want/need, and if those candidates don’t ramp into the position well they don’t want to be on the hook for keeping them (it’s tough to fire employees these days). So this subtle change provides them the flexibility in hiring that they need if they are going to take candidates who have less than 100% of the skills required. Needless to say we’ve seen the associated up tick in candidates who haven’t been transitioned into an FTE. So if it’s your intent to become a permanent employee make sure you treat the interview process the same (no short cuts from your recruiter or the company) and make sure you have all of the answers you’ll need to ensure you move forward after six months.

Pro’s and Con’s of C2P hiring for the candidate:

Pro’s:

Make contracting money for duration of assignment (typically 10-20% more)

Opportunity to try out the company/work environment prior to taking a FTE position

Showcase your skills for you’re soon to be employer and maximize your salary

Con’s:

Lack of stability in your position (they can cut you loose at any time for any reason)

Most companies won’t work w/ the recruiter on FTE salary negotiation so it’s up to you.

Issues and costs surrounding your medical benefits