Contract to Hire

jpeezy55

I was wondering how you guys feel about the whole Contract-to-Hire situation? I see so many jobs offering this form of employment, but I am so afraid to take one because of the fact that I may be out of work in 3, 6, or 9 months if they decide not to hire. Have any of you done this? And do they usually hire after the contract term has ended? I am very much looking for a new place of employment, but am just afraid to make the switch from a nice steady job to a contract position. My wife is a Teacher and we have 2 young kids (both under 6), but I'd still hate to switch knowing it will change again in a few months...I guess I like knowing I have a long-term job - even though nothing is really permanent, especially in IT...

Do these jobs usually pan out? Have you heard of any horror stories of them not working out?

Thanks for your thoughts!

blargoe

The answer is "It depends". I'm in the exact same boat as you (except that it turns out I might be able to negotiate a direct hire in this particular case).

Lots of companies seem to be going this route instead of the traditional 'probation period' for 90 days or whatever to see if you're going to work out. I would see if you could talk them into paying your COBRA costs if your insurance is through your current job, some companies are going that route these days. If you are a good employee and you can do everything you say you can do, there's no reason why they wouldn't keep you - you just sort of have to gauge what kind of company it is and the people under whom you'd be working.

The wisdom I've seen posted on the internet seems to indicate the if the posting is more project oriented, then the likelihood of it being permanent is lower - they'd be looking for someone to complete a project not want to commit to them beyond that. And of course there are some companies that would have you believe they have intentions of hiring you only to keep you on the hook lower than "independent contractor" pay and no benefits.

Some people actually prefer to do contract to hire. Just like the company can choose not to renew the contract, the employee can do the same if they don't like the company. If benefits aren't an issue this can be the more profitable route to go.

jpeezy55

Luckily for me, my benefits are through my wife's school (Teachers get great benefits), so I don't need to worry about that. One of the things that has kept me here is that my school offers a buyout if you don't take their benefits, so they give me an extra $2,000 each year not to have benefits through them.

I guess it's just too scary of an option...I hated being laid off before and the thought of not working is not something I want to think about. I understand that most companies do have a probation period, and I never thought about the Contract Term being that period...but when you look at the jobs that are 12-Month Contract to Hire, you would hope that at some point, they would hire you.

Also, What would be the purpose of doing the Contract to hire? Is it because they might only have a temporary position? Is it a way for them to not have to pay benefits? If they bring someone new in every 12 months, then they wind up coming out ahead by not having to pay any benefits or bonuses, or anything...Hmmm

blargoe

jpeezy55 wrote:

Also, What would be the purpose of doing the Contract to hire? Is it because they might only have a temporary position? Is it a way for them to not have to pay benefits? If they bring someone new in every 12 months, then they wind up coming out ahead by not having to pay any benefits or bonuses, or anything...Hmmm

Honestly, it could be for any of these reasons. There might be a few "warning signs" you could look for in the posting and during the interview that might give you a better idea of the company's intentions. It wouldn't be poor form to come out and ask the company if the position is intended to be permanent and the 12 months is a waiting period, or if the job is intended to be temporary and might become perm if the need arises. I would wager they would make it perm for the right person, it's so hard to find good people these days and good companies want to hang on to good people.