Definition of Temp-to-Hire

Temp-to-hire is a working arrangement in which a worker is hired first on a temporary basis – usually through a temporary staffing agency – with the possibility of the position becoming full-time. It’s not a guaranteed full-time position and hinges on a few variables, such as how well the worker performs during the temporary arrangement and outside influences (such as economic fluctuations) that may lead businesses to reconsider their hiring plans.

How Temp-to-Hire Roles Work

Temp-to-hire assignments are typically longer-term temporary roles, often between three to six months, with the possibility of an extension or a permanent hire at the end of the temporary period.

In many ways, a temp-to-hire arrangement is similar to a probationary period that a new hire often undergoes after accepting a job. The primary difference is that while in the temporary phase of the arrangement, the worker has a temporary status – meaning he/she is not eligible for the same benefits or perks as a full-time employee, such as paid vacation days and health insurance. The worker remains under contract with the staffing platform (or other temporary staffing solution) during the temporary period.

After the temporary period ends, workers become eligible for full-time employment. Often, companies simply transition roles from temporary to permanent at this time, filling out all the paperwork and handling other administrative tasks for a typical full-time hire. If a worker is hired or transitioned to a full-time role, their contract ends with the staffing agency or other intermediary and they formally become an employee of the company. If, on the other hand, the temporary role does not become permanent (the worker is not retained for a full-time role), they can continue to accept temporary assignments through their staffing agency.

In some cases, workers receive a raise when they transition from temp to full-time. When working on assignment through an agency, hourly rates and salaries are sometimes lower in order to cover the agency’s administrative fees and other costs. So, when a worker transitions from temporary to permanent, these fees are no longer applicable, and it sometimes results in a raise in pay. This isn’t always the case, as those funds are sometimes reallocated to cover the benefits the employee becomes eligible for as a full-time staffer.

Benefits of Temp-to-Hire

Temp-to-hire roles benefit both workers and employers, giving employers the flexibility to experiment with new roles and determine whether a candidate is a good fit for a long-term role with the company, while providing workers with a temporary role (and income) as well as a chance to prove their worth to a prospective employer, which could lead to full-time employment.

If a company hires a full-time employee for an experimental role and later determines that a full-time employee isn’t needed to meet the demands of the position, they may end up letting go or laying off a recently-hired employee. In a temp-to-hire arrangement, full-time employment isn’t a guarantee, giving companies the opportunity to determine if the role is needed and the employee is a fit before offering full-time employment.

Temporary workers who take temp-to-hire positions even benefit from the arrangement if it doesn’t end up transitioning to a full-time role. Generally the best performing workers choose temp-to-hire roles, so a long-term temporary gig can be a valuable resume-booster. And, workers often have chances to acquire new skills and learn new technologies in temporary roles, which can also be a boost for a full-time job search.

The majority of Personnel Staffing, Inc.’s job opportunities are temp-to-hire with top employers in your area.  Contact today your nearest PSI office to find out what jobs are available that you qualify for.


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