Direct Hire v. Contract-to-Hire: What Are the Benefits of Each?

“Direct hire means you are an employee and a full part of the company that hired you. 

“Contract-to-Hire means you are a free agent, i.e. an independent contractor, hired for a specific task or time period. Both have pros and cons from the perspective of the worker and hirer. In this article, we’ll explore the benefits to the worker of each. 

Direct Hire Benefits

  • Usually implies long-term job security. Generally, it costs money to hire a new employee. When you are directly hired, the company or organization to some degree is investing in you. It spends time and resources on training, communicating its values, and connecting you to its products, services and clients. There is a strong implication here that you will be a part of the company for a long period of time.   
  • Health benefits, paid time off, pension, and perks. In addition to salary, there are many other factors that add immense value to a job. The obvious ones are health coverage and retirement plans, but many companies and corporations offer additional perks for their employees. Employee appreciation programs, wellness programs, and discounted access to company products and services are just a few examples. 
  • Office culture – being a part of the team. Depending on the company, your role, and your personality, you might find you perform better and find more meaning in being a part of the team. As a direct hire, you’re likely to experience more interaction with other employees who regard you as a long-term part of the company. This can have a positive effect on work relationships and even impact the work you do. 

Contract-to-Hire Benefits

  • Negotiate pay. It’s true that contract-to-hire employees don’t usually get benefits or office perks, but as a result they can often negotiate higher hourly rates for the same role.
  • Experimentation. If you’re not sure you want to stick with a company long term, a contract-for-hire arrangement is a great way to find out. If you’re slow to commit, you might benefit greatly from the opportunity to try out the culture before you’re officially onboarded.
  • Freedom. As a contract-for-hire, you will of course be given expectations and deadlines, but since you’re not technically an employee, you will generally have free reign as to how to get something done. Typically, contracted employees work their own hours and provide their own tools. 

Partner with AP Professionals to Advance Your Career

No matter where you are on your career journey, partnering with a trusted recruiter can equip you for success. Whether you are interested in a direct hire position, a contract-to-hire, or a temporary placement,  AP Professionals can help. Visit us at today to learn how we can help carve the career path that’s right for you.