The temp to perm hiring model is the ultimate solution for finding the best match for both employers and candidates. Today’s workforce is ever changing. We can work anywhere from a typical office, to a beach, to a log cabin, or even from our iPhones in bed. We are super connected and working faster than ever. We focus on this idea of work/life balance, flexibility, and benefits. We want to be able to work when we want from wherever we want! The result? The birth and steady increase in hiring temp and temp to perm (T2P).
The Great Recession and its aftershock caused us to rethink work. Many people lost their jobs and were forced to be underemployed or create their own jobs as entrepreneurs. The sector with the biggest increase in employment coming out of this dark time was temp work. “Temporary help services were some of the first industries to add jobs when the recession officially ended, growing 57 percent between 2009 and 2014.” As financial confidence grew, temp workers started to convert permanently aka the temp to perm hiring model, which has gained serious momentum for reasons that benefit both hiring companies and job seeking candidates.
When I first started at Clarity in the beginning of 2013 the unemployment rate was 7.7%. Companies were uncertain of their financial futures and ability to commit to hiring permanent employees, so they hired temps. Temp hiring continues to increase, but today the unemployment rate has gone down to 5%. This signifies an increased financial confidence leading to more permanent hires and temps converting perm. The number of temp to perm conversions has skyrocketed in just a few years! What used to be an unexpected occurrence for a temp to convert perm has become the norm.
The T2P model has proven to be an effective, no risk way of hiring for the best matched long-term fit for the below reasons:
- The opportunity to “try before you buy”: Both the employer and candidate get hands on experience working together, providing an opportunity to evaluate fit. Typical temp to perm conversion time frames are about 90 days, sometimes shorter or longer. This all depends on the feeling each get on the mutual fit. How much can you truly get to know each other cooped up in a room asking canned questions and providing canned responses? Long term fit is crucial to company culture and cost. Letting employees go kills the office vibe and can be a huge financial burden. For a $100K candidate it can cost $250K to let them go, coming straight off the bottom line.
- A quicker and more efficient hiring process: Interview processes for T2P roles are typically much faster because there is the temp trial period to provide true insight as to whether it’s a mutual fit. It’s a candidate driven market right now and the longer an interview process takes, the higher the likelihood a candidate can be lost to the competition. The average interview process now takes 23 days up from 13 days 4 years ago due to hiring more highly skilled workers. It can be a huge waste of time and disappointment to get a candidate in after multiple rounds of interviews to realize it’s not a fit. This is why the T2P hiring model can save so much time and effort in the process.
- For Employers – no up front risk or administrative costs for the company: On-boarding new employees is expensive and time consuming and a major buzz kill if the employee doesn’t work out. When hiring T2P through an outside agency, like Clarity, administrative responsibilities and costs are taken of a company’s plate. The agency handles all administrative paperwork such as I-9’s, W-4’s, taxes, and insurance (unemployment/healthcare). In the unfortunate event the candidate doesn’t work out, the employer walks away scot-free.
- For Candidates – opens doors: If you’re a job seeking candidate ready to make an immediate move, considering T2P opportunities will open so many more doors. Most T2P jobs are not posted due to the immediacy and sometimes confidentiality of the roles. Signing up with an agency like Clarity, will provide so much more opportunity to get your foot in the door at a great company. Some companies only hire temp to perm for certain roles. Opening up your search to these types of opportunities will open up a whole new world of job prospects.
As great as T2P is, there are a few considerations for both employers and job seeking candidates to keep in mind.
- Not all roles are meant to be temp to perm. Some hiring needs are better off being perm in the first place.
T2P is great for employers if:
- The need is immediate and there is no time to wait to conduct a perm search
- The role has historically high turnover or requires a certain personality fit
- It’s a new position and you want to see how the role fits into the organization
- You simply want a trial period to ensure fit
T2P Executive Assistant searches are prevalent where personality fit is crucial between an executive and their assistant. However, hiring a T2P salesperson wouldn’t make sense since most sales roles have a commission component and are client facing.
- Potential of missing out on best fit candidates: Some candidates are not willing to leave a permanent and secure job for a temp to perm role. This can result in missing out on an entire pool of candidates that could potentially be the best fit.
- Little to no benefits on the temp side: Unfortunately, with the less committal nature of a temp to perm role, on the temp side, candidates are typically not entitled to company benefits such as healthcare/401k, etc. Because of the ACA, agencies like Clarity now offer healthcare benefits after a candidate hits the 90-day mark of consecutive work. However, unless you have other options, this can sometimes be a deal breaker, rightfully so.
- There is no guarantee: It’s best to get all details prior to accepting a T2P role to get an understanding if it’s a true temp to perm or it’s temp with potential for perm. Regardless, there is no guarantee the role will go perm. This may actually be a good thing for the candidate since it could prove to not be a fit. Even in a perm job there is no guarantee it will work out, at least on a T2P basis there is a bit of an out.
Bottom line, T2P hiring has gained massive popularity and proven to be an incredibly effective way to hire or further one’s career.
I have been working with Clarity for over 3 years on Clarity’s temp and T2P team as an Account Executive managing both the client and candidate sides. Throughout my Clarity career, I have converted over 80 temp to perm roles; I’ve seen just about anything and everything when comes to hiring temp to perm. I have recently been promoted to Marketing Manager and I’m excited to further expand my responsibilities to build awareness about Clarity’s highly tailored recruitment services. Whether you are a company looking to hire T2P or a candidate interested in learning more about T2P opportunities, email me at firstname.lastname@example.org or call 212-404-7508. You can also check out our current openings here and apply here. We can’t wait to open your world to limitless possibilities!