- Home
- IT Staffing Services
- Contract-to-Hire
Contract-to-hire staffing that ends in a hire.
TekRecruiter is a contract-to-hire IT staffing agency focused solely on technology and engineering roles at tech and SaaS companies. Your engineer starts shipping now on contract while the permanent role clears approval. We vet every consultant like a direct hire, so 98% of them convert. Beyond skills and experience, we look for HEARTThe HEART standardHHigh agencyEExecutionAAccountabilityRResourcefulnessTTransparencyWhat we look for, beyond skills →.
Trusted by teams at
What is contract-to-hire?
Contract-to-hire is a hiring model where a candidate starts on a contract, employed and paid by a staffing firm, and works on your team under your management. After an agreed period, often three to six months, you can convert them to a full-time employee on your payroll. It differs from a straight contract, where the work has an end date and no permanent role is planned.
- Conversion
- Moving the consultant from the staffing firm’s payroll to yours as a permanent employee.
- Bill rate
- The hourly rate you pay during the contract. It covers pay, payroll taxes, benefits and the firm’s fee.
- W-2 consultant
- The consultant is the staffing firm’s employee, so payroll taxes and benefits are handled for you.
What to know before you start a contract-to-hire.
Whether or not you work with us, these are the questions worth settling before a contract-to-hire search begins.
When does contract-to-hire make sense?
When the need is urgent but permanent headcount takes time. At mid-sized and large companies, a contract can often be approved inside engineering, while a permanent role goes through HR and finance. It also fits when you want guardrails before you commit, or want to give a promising candidate a chance to prove themselves on real work.
Contract-to-hire or a straight contract?
Choose contract-to-hire when you already know the need is long term and the role will become permanent; the contract is only the path to start. If you can’t see a long-term need, it’s a contract. Nearshore is the exception: international engineers often stay on long-term contracts, because converting them to U.S. employees usually isn’t the path.
What does contract-to-hire cost?
During the contract you pay an hourly bill rate: the consultant’s pay plus a markup that covers payroll taxes, benefits and the firm’s fee. Many firms also charge a conversion fee, which often drops the longer the contract runs. Ask for the bill rate and the conversion terms in writing before the search begins.
How long should the contract period be?
Three to six months is common. It should be long enough to see how someone works through a few release cycles: how they ship, communicate and handle a production issue. Agree on the conversion plan and the target salary upfront, so the candidate knows exactly what they are working toward.
Will strong engineers accept contract-to-hire?
More often than you’d think. The best engineers are confident in their skills and their options, so a chance to prove their value in the right environment appeals to them. What matters is understanding why they are open to a move, and being transparent about the role and the path to permanent.
Is contract-to-hire more affordable?
It helps you pay the market rate and not more. Because you see the work before you commit a salary, you can consider strong candidates a direct hire search would pass on, and convert them at a price that reflects proven value. Companies hiring on their own often end up paying above market for a skill set.
Where contract-to-hire usually goes wrong.
Contract-to-hire is faster to approve and lower risk, but only if the agency behind it treats it like a real hire. When it doesn’t, these are the stories we hear.
- 01
It was treated like a gig.
The consultant was hired like a contractor, not a future employee, and left for the next contract.
- 02
The expectations weren’t true.
The candidate was told one thing about conversion, the reality was another, and trust broke before the offer.
- 03
Strong candidates said no.
The agency couldn’t explain the opportunity well, so good engineers passed on it.
- 04
A short interview, the wrong hire.
Contract-to-hire loops are shorter, and without real vetting the wrong person got through.
We treat every contract-to-hire like a direct hire.
That’s why 98% of our contract-to-hire consultants convert. Agencies that treat it like a contract skip the conversations about lasting fit. We don’t: the same technical vetting, the same HEART standard, and candidates who want a contract-to-hire, not the next gig.
- Full vetting, even on a short interview loop: contract-to-hire interviews are often shorter, so our vetting carries more of the weight. It doesn’t change.
- Candidates who want this path: the right person wants to prove their value and confirm your environment fits. We make sure of that before you meet them.
- Expectations set honestly: we explain the role, the timeline and the path to permanent exactly as they are, so no one is surprised at conversion.
- Room for the right exception: contract-to-hire lets you consider a strong engineer a direct hire search would pass on, such as a run of short contracts, once references confirm the story.
| A typical agency | TekRecruiter |
|---|---|
| Treats it like a contract | Treats it like a direct hire |
| Lighter vetting for a shorter loop | Full vetting, whatever the loop |
| Vague about conversion | The path to permanent, explained honestly |
| Candidates between gigs | Candidates who want to convert |
| Contractors with no benefits | W-2 consultants with health coverage and PTO |
The HEART standard
What we look for beyond skills and experience, in every candidate we present.
- High agencyPeople who see what needs to be done and act without waiting to be told.
- ExecutionPeople who turn ideas into results.
- AccountabilityPeople who own the outcome, not just their piece of the work.
- ResourcefulnessPeople who figure things out when the answer isn’t obvious.
- TransparencyPeople who communicate clearly, honestly, and early.
From first call to conversion.
We learn the role and the path to permanent
The work, the team and what success looks like, and why contract-to-hire fits: approvals in progress, a trial before you commit, or both. We agree on the conversion plan upfront.
We vet, then introduce
The same process as a direct hire. Every candidate you meet knows the role, the timeline and the path to permanent, and wants it.
They start, prove it and convert
Consultants start in as little as three days as TekRecruiter W-2 employees with health coverage and PTO. When you’re ready, we move them to your payroll, with no conversion restrictions.
Contract-to-hire roles we recruit for.
Technology and engineering roles, senior through principal, across every team we recruit for.
What clients say.
The hiring team needed someone who could build a Java automation framework from scratch, and we had worked the search for six straight months with at least 12 or 13 vendors. TekRecruiter sent one candidate, and he got the job.
We needed to hire a senior IAM engineer with deep SOC 2 knowledge, and the role had been open for more than three months. Within a week of speaking with Ron, his team sent over three very solid profiles, and we finally found the right fit in just two weeks.
Across multiple companies, I’ve hired more than six senior software engineers through TekRecruiter, and every one of them has been an impressive builder.
I got a firsthand look when I needed a software engineer with strong TypeScript skills to join my team. I was happy with the candidates, and I was able to make a hiring decision.
A former colleague referred me to TekRecruiter, and I was very impressed by the caliber of the senior DevOps engineers they presented. I identified two senior DevOps engineers who were exceptional fits for my team.
He said he would share three to four candidates within a week, and that’s exactly what he did. We hired a senior software engineer we’re confident in, and we’ve been thrilled with how well things have worked out.
The few times I’ve hired over the last five years, I’ve always been vendor neutral, and TekRecruiter has been the staffing partner that filled every one of those open engineering roles.
Their ability to quickly supply highly skilled software and DevOps engineers who blend in well with our existing teams continues to amaze me. They are highly technical at the account management level and transparently propose different solutions, whether staff augmentation or nearshore outsourcing.
When contract-to-hire is the right call.
- The need is long term, but the headcount isn’t approved yet, and you need someone now.
- You want proof before you commit, on real work, not just interviews.
- You want to give a promising candidate a chance, even if their profile doesn’t fit a direct hire checklist.
- The role is permanent and approved. Direct hire is simpler, backed by our 90-day guarantee.
- The work has an end date. A straight contract (staff augmentation) is the better fit.
- The candidate will only take a permanent offer. We’ll tell you, and recommend direct hire.
Contract-to-hire vs. direct hire vs. contract staffing.
| Direct hire | Contract-to-hireYou are here | Contract staffing | |
|---|---|---|---|
| Who employs them | You, from day one | TekRecruiter during the contract, then you | TekRecruiter, for the length of the contract |
| How you pay | A one-time fee when the hire starts | An hourly rate, then conversion terms agreed upfront | An hourly rate |
| Commitment | Permanent | A trial period, then permanent | A project or fixed term |
| Best for | Core roles you are sure about | Long-term roles you want to see in action first | Deadlines, projects and backfills |
| Learn more | Direct hire | How contract-to-hire works | Staff augmentation |
Contract-to-hire questions, answered.
How much does contract-to-hire cost with TekRecruiter?
During the contract you pay an hourly bill rate that covers the consultant’s pay, payroll taxes, benefits and our fee. The rate depends on the role and is agreed before the search begins, along with the conversion terms. There are no conversion restrictions.
When can we convert a consultant to full-time?
When you’re ready. There are no conversion restrictions, and we handle the move from our payroll to yours.
How many of your contract-to-hire consultants convert?
98%. We treat every contract-to-hire search like a direct hire: the same vetting, the same HEART standard, and only candidates who want the path to permanent.
Are your consultants W-2 employees?
Yes. Contract-to-hire consultants are TekRecruiter W-2 employees with health coverage and PTO, working on your team under your management.
How fast can a consultant start?
In as little as three days after you approve them.
Can we hire nearshore engineers on contract-to-hire?
Nearshore works differently. International engineers usually stay long term as contractors on ongoing projects, because converting them to U.S. employees usually isn’t the path. See Nearshore.
What is the HEART standard?
HEART is the standard we screen every candidate against, beyond skills: high agency, execution, accountability, resourcefulness and transparency. It describes people who take ownership, turn ideas into results and move the business forward. See the standard.
Last updated .
Other ways to hire.
Start the work now, convert when you’re sure.
Tell us the role. You'll talk with our founder, Ron Smith.
