The #1 Reason to use a Temp-to-Hire Service
The idea of a trial period for new employees and the concept of temp-to-hire arrangements are not novel concepts, but their significance in today's employment landscape is more important than ever. Despite our staunch advocacy for the Direct Hire model of recruiting and staffing, SalesFirst Recruiting occasionally recommends Temp-to-Hire arrangements. Why? The reality is that Probationary Periods, while commonly used, can inadvertently expose our clients to risks they may not have considered.
Here are our thoughts on the matter…
Companies Like the Idea of a Trial Period
For 12 years, companies have told us they appreciate the concept of a trial period for employees because it allows them to assess a candidate's skills, work ethic, and fit before making a long-term commitment. The idea is to allow an opportunity for both the employer and the employee to evaluate each other's performance, communication styles, and compatibility. It does offers a certain sense of security and confidence to companies, enabling them to make more informed decisions about permanent employment. But the idea has been tested by courts around the nation, and it doesn’t get discussed very often.
Probationary Periods can Interfere with At-Will Employment
In At-Will employment, both employers and employees can terminate the work relationship at any time for any lawful reason. Most states operate under the At-Will principle, with Montana being the sole exception as a “Just-Cause” State, where termination requires certain justifiable reasons.
Probationary periods introduce complexities for employers regarding their rights, with courts nationwide grappling with the issue. When companies implement probationary periods, they introduce an evaluation period for employee performance. The question at hand for courts is whether a probationary period implies expectations of fairness and due process. These legal inquiries and rulings have blurred the lines of at-will employment, potentially affording employees advancing past their probationary period a level of protection beyond what at-will employment was designed to provide.
The Common Sense Alternative to a Probationary Period
For SalesFirst Recruiting and others, hearing the term "probationary period" prompts recommendations to either eliminate such language or consider temp-to-hire arrangements instead. Temp-to-hire options allow our customers to assess candidates' skills, work ethic, and cultural alignment firsthand, but while they are on OUR payroll assigned to you as a contractor for a limited amount of time - usually 90 days.
The recruited employee joins the staff of the recruiting agency but goes to work on behalf of the client. They get paid by the recruiting agency on an hourly basis for the work they do at the company. At least in SalesFirst Recruiting’s system, temp-to-Hire is designed to keep the overall cost comparable to a Direct Hire Fee. The distinction lies in the payment structure—instead of a one-time fee, employers pay an hourly rate for 90 work days (or 520 work hours). Beyond this period, the candidate becomes eligible for permanent hire without incurring any additional fees. This way, the company gets to evaluate the employee's performance and fit for the job before deciding whether to offer them a permanent position.
Ideal Positions for Temp-to-Hire
Marketing and recruiting professionals are well-acquainted with the concept of temp-to-hire positions. Customer Service and Administrative Professionals can say the same thing. However, the sales community has been slower to embrace the temp-to-hire model. It doesn’t happen very oten. Still, the temp-to-hire model holds promise for certain sales positions if done carefully and correctly. By providing a highly structured, highly transparent system, companies can assess sales professionals' performance, client relationships, and alignment with the company's sales strategy before making permanent commitments. This approach not only mitigates risks associated with hiring but also fosters transparency, accountability, and mutual trust between employers and candidates.
Ask SalesFirst Recruiting for Help!
Temp-to-hire services offer a strategic framework for navigating the complexities of talent acquisition while mitigating risks associated with at-will employment. By providing a structured trial period, employers and candidates alike can make informed decisions about long-term commitments, fostering mutual trust, transparency, and alignment of expectations. Please reach out to SalesFirst Recruiting if you think we can help you!
