The Purpose of Contract-to-Permanent Jobs

The Purpose of Contract-to-Permanent Jobs

The relationship between employer and employee has evolved over time. Today, the employment arrangements that were less popular decades ago are moving into the mainstream. One of the growing trends on this topic is Contract-to-Permanent Jobs.

As a recruitment agency aspiring to help employers keep track of the latest job market trends, TG Group has compiled a piece on The Purpose of Contract-to-Permanent Jobs:

Why Choose a Contract-to-Permanent Employment?

Flexibility for Employer and Employee

A contractual job arrangement offers a flexible employment option for both employers and employees.

Under this arrangement, the employer assesses the employee’s skills and character without making a permanent commitment. This evaluation period allows the employer to make a more informed decision about whether the employee is a good fit for the company in the long term.

For employees, this arrangement allows them to gain a better understanding of the company and its culture before committing to a permanent position.

If the employer finds that the job or company culture doesn’t match their expectations, they can find a new job by the end of their contract. This arrangement allows the employee to learn new skills and gain experience.

Training and Development

Many companies choose to provide on-the-job training to their employees. A contract-to-permanent employment motivates employees to perform their best to secure a permanent position.

This form of employment is similar to a test, with the probationary period an assessment of an employee’s capabilities. The employer will pick top performers to offer them permanent positions.

During the probationary period, the employer will provide training, and the employee should appreciate the opportunity to upskill or reskill themselves.

Some may criticize this form of employment for its lack of job security. However, the competition for permanent employment can boost productivity. If contractors prove they can contribute to high-level team productivity, they will be offered permanent employment.

More Room for Negotiation

Opting for a contract-to-permanent pathway is beneficial for employers and employees. This arrangement helps them gain deeper insights into each other’s work styles and performance.

When an employer hires an employee on a contract basis, they get to evaluate their skills, work ethic, and overall fit within the company. After analysing the results, they decide who to hire permanently among the contract workers.

Likewise, employees can assess the company culture, workplace, and job responsibilities before committing to a long-term position.

A contract-to-permanent pathway is flexible, low-risk, and allows a smoother transition to a permanent role if both parties are satisfied with the arrangement.


Does your company need a relook into your workforce management strategy? Get in touch with our contract staffing recruiters to find out how you can restructure your talent management policy.

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