Contract-to-hire - What would you do?

inverse_one

So my current role is a technical support engineer for a enterprise firewall (very much nitch). The product and employees have been in a decline and I basically the only one supporting the product during the day worldwide (I feel shamed for taking time off even). At this point I'm pretty burnt out and I have no way of increasing my skill set in this role. I literally have no time to lab stuff with answering calls all day and family responsibilities at home.

With that said I'm looking at contract-to-hire jobs though Teksystems. I don't want to have to go down that road, but my searching for a full time job has gone 6+ months without any firm bites. I need to increase my skill set, but companies can pick and choose candidates in my area (We have a negative unemployment rate in my town for IT).

My question is would you guys consider a contract-to-hire role to increase skill sets while looking for another full time job? I do have a family so I'm a bit hesitant on doing this route. Current job is very much grinding and I'm getting burnt out (Plus my passion for IT has pretty much died in my current role).

iBrokeIT

Of course, it is just a different compensation model. Why wouldn't you consider contract-to-hire? What are your hang ups?

gespenstern

I say follow your dream but be at the ready to sacrifice at least some of your regular lifestyle for this, but this advice is too general, there could be special cases. Contract jobs are usually paid better than FTEs (with the exception of low-end jobs) so use this surplus to set aside in case you aren't hired. Check your state laws to see if contracts can be broke by employers for no reason so you don't expect your contract to last what you were told initially, check if you can find folks on linkedin or on local user groups or something who worked there and what are the chances to be hired or to be kicked out before contract expires, etc and put everything into equation so you can better assess pros and contras. Find out if you can move for right opportunity to another city. Check for remote jobs that are pretty common these days especially on higher-end.

inverse_one

Of course, it is just a different compensation model. Why wouldn't you consider contract-to-hire? What are your hang ups?

I guess there is a stigma that contract-to-hire is bad due to the nature of uncertainty with on-going employment (they can let you go without much notice). My other hang ups is benefits (health, retirement, etc) are going to cut deep into my hourly rate. I guess if the end goal is FTE, then getting good skills to fit those jobs looks to be the best course.

Danielm7

inverse_one wrote: »

I guess there is a stigma that contract-to-hire is bad due to the nature of uncertainty with on-going employment (they can let you go without much notice). My other hang ups is benefits (health, retirement, etc) are going to cut deep into my hourly rate. I guess if the end goal is FTE, then getting good skills to fit those jobs looks to be the best course.

Anyone can let you go without much notice. If they are paying you enough hourly to cover your benefits you should be fine.

inverse_one

gespenstern wrote: »

I say follow your dream but be at the ready to sacrifice at least some of your regular lifestyle for this, but this advice is too general, there could be special cases. Contract jobs are usually paid better than FTEs (with the exception of low-end jobs) so use this surplus to set aside in case you aren't hired. Check your state laws to see if contracts can be broke by employers for no reason so you don't expect your contract to last what you were told initially, check if you can find folks on linkedin or on local user groups or something who worked there and what are the chances to be hired or to be kicked out before contract expires, etc and put everything into equation so you can better assess pros and contras. Find out if you can move for right opportunity to another city. Check for remote jobs that are pretty common these days especially on higher-end.

Good stuff, I'll check the legal thing. I'm pretty much stuck in the area I'm in now. On the remote side, I don't think I have the experience to have an employer trust me doing all remote.

scaredoftests

It is an odd role to be in..like on an island..alone. How long before you get 'hired'? I was in that role before..no benes..no real say on anything..after 6 months I was canned.

iBrokeIT

inverse_one wrote: »

I guess there is a stigma that contract-to-hire is bad due to the nature of uncertainty with on-going employment (they can let you go without much notice).

This is ridiculous. The majority of FTEs in IT are employed "At-Will" and can also be let go without any notice but it is usually more expensive for the employer to do so. Yes, a small minority of companies abuse C2H so check their reputation before you sign on but this is by no means a valid reason to exclude all C2H opportunities from consideration.

The reason C2H is gaining popularity in IT is that it gives the employer a chance to "try before you buy", meaning they get to bring you on board and see that you have the skills and abilities you claimed you had on your resume and during the interview process. If not, then they can let you go without having to take the hit to their unemployment fund and health insurance.

inverse_one wrote: »

My other hang ups is benefits (health, retirement, etc) are going to cut deep into my hourly rate.

Usually your contracting hourly rate is higher than your FTE hourly rate to make up for this difference. When you have your interview you will discuss your contract rate then your FTE salary.

inverse_one wrote: »

I guess if the end goal is FTE, then getting good skills to fit those jobs looks to be the best course.

Yes, with C2H the end goal is be a FTE vs a straight up contract.

inverse_one

scaredoftests wrote: »

It is an odd role to be in..like on an island..alone. How long before you get 'hired'? I was in that role before..no benes..no real say on anything..after 6 months I was canned.

I'm really just considering contracting to get the professional experience to get the next job. I'm finding most companies want someone to hit the ground running and don't really want to take a chance on someone with less experience. In my opinion I would say if they don't offer perm after the contract is over then I'll find another role.

Russell77

If I were in your situation I would be very careful about jumping unless the temp job seems so good you can't turn it down. Contract to hire thrive on down markets. 6 months becomes 12 then the company may not have a requisition to hire you. The market may be down now but it seems like you could wait it out where you are until something better comes along. Just be very diligent in your job search and something will turn up sooner or later. With a family heath insurance is way to important to gamble with so you have to account for that. Job markets change just keep looking and don't stop no matter how long it takes.

jcundiff

Unless you are mid-senior level or above, most places these days are CtH, why interview you for a role for 30 minutes to an hour, when I can bring you in and interview/evaluate you for 90-180 days? I started out in IT in 1998 as temp to hire as it was referred to then, got hired in a supervisor role two months later and been doing IT/InfoSec ever since. If you want to move to new roles/experiences this may be your best path depending on where you are in your career

TechGromit

inverse_one wrote: »

With that said I'm looking at contract-to-hire jobs though Teksystems. I don't want to have to go down that road, but my searching for a full time job has gone 6+ months without any firm bites. I need to increase my skill set, but companies can pick and choose candidates in my area (We have a negative unemployment rate in my town for IT).

My question is would you guys consider a contract-to-hire role to increase skill sets while looking for another full time job?

Only as an absolute last resort. Contract-For-Hire jobs are a pipe dream, the staffing agency has no interest in your ever obtaining a full time position, they would rather keep stringing you along forever and keep collecting the lion share of the contracting fee. Not only will they not help you get a full time position, they will actively try to prevent it from happening, it's not in there best interest. I know from experience, I worked for TekSystems, they made it very difficult for me to get a full time position. Also there benefits are a complete joke, $600 a month for medical benefits for me and my Wife that paid only 60% of medical costs for the few things they covered and had a 25k a year out of pocket max. I opted to keep my Cobra benefits, I was paying $1,200 a month, but at least it actually covered something.

And I wouldn't believe a word on Glassdoor about Teksystems. Please explain to my how a Company that has less the 3k employees has 1,700 reviews and a company like version that has 175k employees only had 3,700 reviews. I firmly believe someone is writing bogus reviews to bump up there company ratings.

bpenn

I would take a contract-to-hire job in a hot minute if it meant I could get a TS clearance or get into more advanced technologies. I get my medical insurance from the AF Reserve so I don't care whether or not they offer substantial benefits or not. I am at a point in my career where I want to move on and am just stuck. It would be a lost resort for me but I am seriously at that point now.

coreyb80

I left a job of 6 years for my first job in IT 3 years ago. It was C2H and I was a contractor for a little over 6 months before I got brought on as a FTE.

inverse_one

jcundiff wrote: »

Unless you are mid-senior level or above, most places these days are CtH, why interview you for a role for 30 minutes to an hour, when I can bring you in and interview/evaluate you for 90-180 days? I started out in IT in 1998 as temp to hire as it was referred to then, got hired in a supervisor role two months later and been doing IT/InfoSec ever since. If you want to move to new roles/experiences this may be your best path depending on where you are in your career

That's what I'm running into - I'm looking at sys/net admin or sys/net engineering roles, but most require some sort of experience already. The companies willing to take a chance on someone with no experience in that regard pay in peanuts. I'm certain I don't to take a drastic pay cut to get experience, so c2h (or event contact) looks good to ramp up quickly.

powerfool

So, the stigma of contract-to-hire isn't uncommon. Not only is there the perception of uncertainty (and there certainly is greater uncertainty with contract-to-hire over direct hire, even considering the general at-will nature of work... if companies were more certain about the direction, they would just do direct hire, but they may have budgetary hang ups and other issues), but there is also the treatment of being a second-class employee (e.g. "why are you at the company-wide meeting?", and people not taking you seriously).

However, I have had good success with contract-to-hire. You can make of it what you will. If you do well, they could shorten the term and bring you in. Also, maybe they consider a better opportunity now that they have a clear assessment of your capabilities. Also, it is an excellent time to determine if this is the right place for you; it is easy to keep looking for another position and if you are asked, you just state that it is a contract job... so less stigma than leaving as an FTE within months of starting (which shouldn't be a big issue if it truly wasn't a good fit... so long as it isn't habitual).

The financial uncertainty is a biggie, however. If you have that issue, what could you do to improve it? Could you take on some side work to bring in some other monies or save more back? Could you lower your debt burdens by paying some things off? What about giving yourself a "crash course" in what could be by living that for a month now? Cut back your budget for anything besides the non-essentials... you may not fear it as much if you experience it, plus you can save some more money now and be prepared.

inverse_one

I've been told you usually know if they are serious about bringing you on or if they are just stringing you along.

I'm pretty good at financial stuff and run a good budget at home, I'm not too worried there.

jcundiff

yeah, you can get a feel within 30 days whether the company is actually looking for employees or not

YEAR1

As a Perm IT recruiter myself, I would never suggest anyone to leave a full time role for a "contract to hire" opportunity. Contract to hire are never guaranteed. Personally I would contact 5 recruiters in your area and sell my skills to them. Have each one present options to you and pick the best one (this may take some time but worth it).

The question I would ask your Teksystems guy is this - What is the major concern for their company (who they are working with) not to explore a perm solution?" & What good faith measures are in place for me to "trust" this opportunity as contract to hire. Within about 15 seconds you should be able to read if your contact is BS'ing you. Often times contract recruiters try to shove you into these roles for the billing hours. (and Good luck!)

Remember work sucks for you right now but it's still work.

Its easier to get a job with a job.

Hope it helps

YEAR 1 -
Recruiter