What Are Contract To Hire Jobs


 Pleasure in the job puts perfection in the work. ~Aristotle


When it comes to Job Hunt various types of job are available out there. Most of the times it’s easy to decide which direction to go. But sometimes our mind gets into dilemma. It becomes difficult to choose among the type of jobs. As each type of job has its own benefits and risk. Here we are going to discuss about most highlighted topic which is Contract to Hire Jobs.


Contract Jobs

First let us know what is Contract to hire Job? Well Contract Jobs is a type of job which is for a particular time. The calculation of the salary is done on a hourly rate or day rate. There is duration of the Contract Jobs. It can be for One Month, Three Months, Six Months or More. Contract Jobs can also be known as third party payroll jobs. Let’s take an example,

There is an opening in a Multinational Company for a particular project. Sometimes with a specific key skill. The duration of the project is for six months and company needs immediate joiner. So they give the responsibility of sourcing the candidate to a consultancy. The consultancy source the candidate according to the desired key-skills. If the candidate got selected for the particular role. Then the salary process, offer letter will be processed by the consultancy for that candidate. And the candidate will be working in that Company on the payroll of that consultancy.

More Salary

Contract to Hire employees are always paid more as compared to permanent employees. The duration of the project is short term so they can easily get salary hike. Sometimes there is a very crucial need in the project. And on a urgent basis the position has to be filled in a company. Therefore Contract employees easily take advantage of that thing. And they demand for salary hike.Which is usually fulfilled.


Job Diversity

There are too many options available for the Contractual Employees. They can easily choose among the options. They can easily switch form one company to another. There are varieties of jobs available in market for contractual employee. Contractual employees are their own decision makers; they always have option to choose. It can be duration of work, time of work sometimes location too. From Short-term project job to long term project job, various options are available for them.


Small to Big Projects

Contractual Employees gets to decide what type of project they want to be a part of. There are no limitations or boundation for them. Contract to hire employees can choose the projects according to their will. Many small to big companies wants to hire contract employees by giving hire cost. Most of the times if the tenure of project is less than three months, per day or hourly rate is high. So contract to hire employees are paid more as compared to permanent employees of that company



Job flexibility is the best part of contract to hire role. It helps the employees to work according to their flexibility. It has been observed in most of the companies, the employees who work according to their will give higher productive results. Employees who are flexible they achieve their target easily. So when it comes to contract to hire employees they have this advantage.


International Job Opportunity

With contract to hire role employees foreign work exposure is easy to get. Outside of India more than 90% of the employees work on contractual basis. A permanent employee doesn’t get much chance to go and work abroad as there is much liability with them. Notice period is more for the permanent employees. Usually it is for three months. So if there is urgent need for a person in project. Contractual employees easily grab the opportunity. As dependency is less.


No Promotion

Well every coin has two sides, so there is a drawback for the contract to hire employees. As contract to hire employees are not permanent in a company. Project tenure is maximum to one year. Chances of getting promotion are very less like 10%. Only salary hike is there for them in every company they join. But promotion is not given to them. Sometimes contract employees join the company in the same designation as their previous one.


No Job Security

There is no job security for the contract to hire employees. As they have to change their job every quarterly or yearly. There is no stability for them. As soon as the tenure of the contract gets over they have to leave the company no matter how good they are. There is no guarantee that company will extend their contract period. There may be times when the person has to live without jobs for several months.


Leaves & Benefits

In every company leave policy is different and more reliable for permanent employees. But when it comes to contract to hire employees. They don’t enjoy much benefits of the company. Rules are different for contract employees. They follow the policy of the consultancy from which their offer letter has been processed. Leaves are also less and most of the times insurance and other benefits like cab facility, reimbursements; bonus is also not given to them.


Job Hunting

For contract to hire employee’s job hunting is a continuous process. They can’t depend upon their existing job. The contract employee’s knows that as soon as tenure of their contract gets over they have to start looking for another job. Because there are very less chances of extension. Contract employees are highly paid as compared to permanent employees. So no company wants to pay more for the same designation. Hence job hunt is an ongoing process for contractual employees.


Difficult to Secure Permanent Position

Contract to hire employees have worked in many companies. So there is no job stability for them. No matter how good they are or how much expert they are. Chances for securing permanent position are very difficult for them. The permanent or the existing employees are trusted more. No matter how hard or how dedicated contract employee’s work they are always treated as an outsider. Thus they always have to face hurdle in securing a permanent position.


Hope this article would be useful in taking your decisions.

I am blogger who loves to share knowledge and encourage people . I have a strong belief in Walt Disney's quote "If you can dream it . You can do it ".

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