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Contract to Hire v. Direct Hire: What’s The Difference and Which Is Better?

Bringing in new IT talent is how companies grow and increase capacity. With new talent comes new possibilities and fresh perspectives. 

However, not all companies are looking for the same talent or the same working relationship, and not all companies want to navigate a sea of generic, mismatched candidates to find “the one.” Working with an IT staffing firm like IDR helps cut through the application noise and get laser-focused on only the best candidates without wasting time or resources. 

On the other side of the hiring desk, you have the talent to offer, but maybe you’re looking for something temporary or flexible. Or you have a specialized set of IT skills that can be leveraged for a specific project or outcome. 

Let’s examine the differences between two of the most popular employment styles and consider what may be best for your situation. 

The Basics of A Contract Hire

A contract hire usually implies a temporary arrangement for a specific purpose or time period. In some cases, a contract hire could lead to a long-term contract or in-house hire, but this is not always the case. The best way to find contract work is to connect with an IT staffing agency that already has a wide range of open positions and can accelerate the hiring process. 

The Basics of A Direct Hire

A direct hire is handled by the company with a role to fill and without an intermediary. Most often, these roles are full-time, long-term roles with traditional hours and expectations. There may be specific locations, certifications, or qualifications that are less flexible than with contract hires. 

Which is Better? 

Benefits of Contract Hire

Working with a staffing agency allows you to take advantage of their existing relationships with the types of companies you want to work for. These are vetted and reliable connections that give you confidence and peace of mind to move forward. 

The agency will also handle all the background details, such as contracts, salary, background checks, working structure, etc. Finding a contract hire role typically has a shorter timeline than finding a direct hire role. Reputable IT staffing agencies, like IDR, offer benefits and retirement or ESOP programs for their employees.

For employers, the contract hire arrangement opens a whole new avenue for funneling in top talent without the complexities of traditional hiring. There is less risk with a contract hire as you’ve not fully invested in a full-time employee. You also have the option to turn on or switch off incoming candidates to fill open roles as needed. 

Benefits of Direct Hire

You have the benefit of working directly with the company and seeing all the major players face-to-face. You can see the company culture in action from the beginning and interface with other team members. The starting salary for a direct hire can be higher, but this depends entirely on the role and contract terms. 

Companies with a role to fill may be looking for a long-term permanent hire and desire more control over the end-to-end process. While this can be handled in-house, working with a staffing firm to find the perfect-fit candidate that completes your team can accelerate talent acquisition and prevent hiring mistakes. 

Find your perfect IT role or new hire with IDR! We’re proud to be one of the fastest-growing staffing agencies and an 11-time winner of ClearlyRated Best of Staffing® Company. Our fill ratio is 2X the market average and 20% faster. Check out our current openings here

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