Sometimes, companies who hire a worker on a contract basis decide that they want to bring that person on staff full-time. This is known as a temp-to-direct (or temp-to-hire) situation. This beneficial for recruiters in a number of different ways.
First, they were able to make an initial placement with the company. Regardless of whether this was a current client or a new one, that’s a huge positive, not just because of the money earned from the placement, but also because of the potential it creates for future business. Temp-to-direct placements offer companies the ultimate in flexibility because officials can see how the contractor will work out before extending an offer of full-time employment. Those same officials are likely to remember recruiters who provided them with such flexibility.
Second, the recruiter involved typically gets paid twice for the same placement. They’re compensated for every hour that the contractor works during the contract period, and then they’re paid a conversion fee once the contractor becomes a direct hire. The only thing better than getting paid for a placement is getting paid twice for the same placement! In today’s uncertain economic environment, temp-to-direct placements are becoming more commonplace, and there is no end in sight to its popularity.
Leave a Comment..