Contract-to-hire by the #s:
Does it make sense for your company?
Contract-to-hire by the #s:
Does it make sense for your company?
Contract-to-hire by the #s:
Does it make sense for your company?
For positions that are difficult to fill or require a definitive fit, "contract-to-hire" can be a cost-effective approach to finding the right person.
Because employers can be sure that they are making a good
hire before committing, there is a high rate of success hiring
temporary employees full-time.
Contract-to-hire by the #s:
Does it make sense for your company?
For positions that are difficult to fill or require a definitive fit, "contract-to-hire" can be a cost-effective approach to finding the right person.
Because employers can be sure that they are making a good hire before committing, there is a high rate of success hiring contract employees full-time.
When you choose contract-to-hire, you can:
take the time to understand the
employee's strengths &
weaknesses
+
choose the right long-term fit
without high overhead costs
[
take the time to understand the
employee's strengths & weaknesses
]
+
[
choose the right long-term fit
without high overhead costs
]
take the time to understand the
employee's strengths &
weaknesses
+
choose the right long-term fit
without high overhead costs
and you don't pay for:
administrative
coordination
payroll
costs/taxes
providing health
benefits
unemployment
taxes
sick pay, PTO,
vacation days
administrative
coordination
payroll
costs/taxes
providing health
benefits
unemployment
taxes
sick pay, PTO,
vacation days
Rate Comparison:
DIRECT HIRE:
Annual Salary:.............................................$60,000*
Staffing Firm Fee:.................................................$15,000
(25% of salary)
Employer Payroll Tax:..................................................$12,000
(approx. 20% of salary)
Health Benefits:...........................................$9,000
(15% of salary)
+ Potential Unemployment Cost
TOTAL DIRECT HIRE COST: $96,000
$46.15/HR**
*For comparison purposes, we are using a $60K salary role | **Based on 2080 hours
CONTRACT HIRE:
Base Bill Rate Includes:
Federal Tax
State Tax
Local Tax
Payroll Tax/Insurance
Benefits
$45/HR
DIRECT HIRE:
Annual Salary:....................................$60,000*
Staffing Firm Fee:........................................$15,000
(25% of salary)
Employer Payroll Tax:........................................$12,000
(approx. 20% of salary)
Health Benefits:..................................$9,000
(15% of salary)
+ Potential Unemployment Cost
TOTAL DIRECT HIRE COST: $96,000
$46.15/HR**
*For comparison purposes, we are using a $60K salary role | **Based on 2080 hours
CONTRACT HIRE:
BASE BILL RATE INCLUDES:
Federal Tax
State Tax
Local Tax
Payroll Tax/Insurance
Benefits
$45/HR
DIRECT HIRE:
Annual Salary:............................................$60,000*
Staffing Firm Fee:........................................$15,000
(25% of salary)
Employer Payroll Tax:...................................$12,000
(approx. 20% of salary)
Health Benefits:...........................................$9,000
(15% of salary)
+ Potential Unemployment Cost
TOTAL DIRECT HIRE COST: $96,000
$46.15/HR**
*For comparison purposes, we are using a $60K salary role | **Based on 2080 hours
CONTRACT HIRE:
BASE BILL RATE INCLUDES:
Federal Tax
State Tax
Local Tax
Payroll Tax/Insurance
Benefits
$45/HR
DIRECT HIRE:
Annual Salary:..................................$60,000*
Staffing Firm Fee:..............................$15,000
(25% of salary)
Employer Payroll Tax:....................$12,000
(approx. 20% of salary)
Health Benefits:................................$9,000
(15% of salary)
+ Potential Unemployment Cost
TOTAL DIRECT HIRE COST: $96,000
$46.15/HR**
*For comparison purposes, we are using a $60K salary role | **Based on 2080 hours
TEMPORARY HIRE:
BASE BILL RATE INCLUDES:
Federal Tax
State Tax
Local Tax
Payroll Tax/Insurance
Benefits
$45/HR
Wondering if contract-to-hire is right for your company?
Wondering if contract-to-hire is right for your company?
Wondering if contract-to-hire is right for your company?
How soon do you need an employee?
If you're stretching employees thin to cover the demands of an open role, getting a contract employee in the door until you find the right fit can keep the business moving so that you don't feel rushed and ultimately make a hasty decision. Plus, you'll be able to see how effective an employee is in such a critical role before committing to a full-time hire.
Direct Hire:
2-4 WEEKS:
sourcing + interviewing
+
2-4 WEEKS:
typical employee notice
4-8 WEEKS BEFORE EMPLOYEE STARTS
Contract-To-Hire:
You can have a qualified
employee starting in
AS LITTLE AS A DAY
Direct Hire:
2-4 WEEKS:
sourcing + interviewing
+
2-4 WEEKS:
typical employee notice
4-8 WEEKS BEFORE EMPLOYEE STARTS
Contract-To-Hire:
You can have a qualified
employee starting in
AS LITTLE AS A DAY
Direct Hire:
2-4 WEEKS:
sourcing + interviewing
+
+
2-4 WEEKS:
typical employee notice
4-8 WEEKS BEFORE EMPLOYEE STARTS
Contract-To-Hire:
You can have a qualified
employee starting in
AS LITTLE AS A DAY
Has the role had a lot of turnover in the past?
When you choose contract-to-hire, you have a risk-free way to test out an employee. By taking the time to find the right fit, you can be sure to reduce turnover in the long-term.
Hiring problems account for 80% of employee turnover
Hiring problems account for
80% of employee turnover
When you choose temp-to-perm, you have a risk-free way to test out an employee. By taking the time to find the right fit, you can be sure to reduce turnover in the long-term.
Hiring problems account for 80% of employee turnover
Hiring problems account for
80% of employee turnover
Is personality/cultural fit important to the role?
Unless the role is specifically skill-driven, it is crucial to hire employees that can effectively work with each other, and a poor cultural fit can create waves of discord across an organization. Before you commit to an employee, testing how they fit within an organization can not only save money, but keep a consistent, positive culture, ensuring that the rest of your business is not adversely affected.
The result of turnover due to poor
culture fit can cost an organization
50-60% of the employee's annual salary
The result of turnover due to poor
culture fit can cost an organization
50-60% of the employee's annual salary
The result of turnover due to poor culture fit can cost an organization
The result of turnover due to poor
culture fit can cost an organization
