Contract to Hire vs. Direct Hire: What is the Difference?

May 2, 2022

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Beginning your job search is a lengthy process. You’re expected to eloquently craft your resume or CV and gather your thoughts for interview questions that aren’t always easy to answer. In addition, you’re bound to encounter terms on a job application that add to the confusion, primarily when referring to employment types like direct hire and contract-to-hire. After all, isn’t a job just a job? Well, not always, and we’re here to answer your questions.

What is Direct Hire?

A direct hire is when a candidate is hired directly by another company. Essentially, this means that they start immediately on the company’s payroll. There are several benefits to this. For one, the candidate becomes a full-time employee from day one. There aren’t any contingencies to their employment, and they feel like they’re part of the team right away. Additionally, these employees likely have a stronger sense of commitment to their employer because they feel more secure in their role. 

What is Contract-to-Hire?

Contract-to-hire roles are where a candidate does not work directly for their employer but is employed by a staffing agency for the duration of the employer’s needs. In other words, a candidate signs a temporary contract with an employer, and once the period on their contract is up, they are free to establish a new contract or seek employment elsewhere. Contract-to-hire employees can accept a full-time position with their employer if both parties agree they are the right fit. These roles allow employers to “try before buying,” and they have more flexibility over budgeting needs.

Most importantly, the benefit of direct hire and contract-to-hire roles varies for each company. Here at NTG Staffing, we can help determine which services your company needs to attract the most qualified talent and reach its greatest potential. With a wide range of personalized services for your needs, we are excited to work alongside you to create a talent pool that will help your business thrive. Contact us today to get started.

 

New Tech Global has been in the oil and gas consulting industry for over 20 years specializing in engineering, project management and well site supervision. Over the years, as requested by some of the largest oil/gas operators and service companies in the world, we’ve expanded our business from consultancy services to staffing as well. We provide W-2 contractors too many different industries including oil/gas, energy, petrochemical, manufacturing, industrial, construction, and medical. NTG has offices in Houston, Midland, Fort Worth, Denver, and Canonsburg, PA as well as international offices in Mexico City and Dubai.

Considering NTG’s reputation in the oilfield along with our success in staffing, we would be a great staffing partner for any company. We have structured our Recruiting group to strategically best serve the needs of our clients. We have taken our knowledge of the high demand, technical experience and 24 hour service of the oilfield and have been able to adapt to other industries.

With our combined recruiting experience in and out of the oil/gas industry, we are able to provide our clients a diverse level of support in supplying candidates for the following disciplines: Manufacturing, Skilled Trades, Procurement, Maintenance, HSE/Quality, Engineering, Field Technicians, IT, Accounting/Finance, HR, Marketing, Executive Suite and Administrative. NTG is considered a national vendor for several of our clients and we have contractors in 40 states.

NTG Staffing provides complete onboarding services

Client Experience:

NTG provides to your company a personal approach. Our relationship is built on trust and reliability. We strive to surpass the client’s expectations in multiple ways: we look for technically sound, driven individuals that match your company’s culture.
NTG will tailor our recruiting efforts to your needs. For example, our team will prescreen the candidate(s) and determine if they are the right fit for the company and position. The hiring manager will receive a full candidate description highlighting the relevant skills related to the job. If the client would like to proceed with an interview, NTG will assist in coordinating the interview with both parties. We pride ourselves in being thorough. We interview all of our candidates and only present those who fit the requirements of your positions.
Other services include weekly updates to the hiring managers, reference checks, onboarding prescreening assessments and offer negotiations.

NTG Staffing provides complete onboarding services
NTG Staffing provides complete onboarding services

Client Experience:

NTG provides to your company a personal approach. Our relationship is built on trust and reliability. We strive to surpass the client’s expectations in multiple ways: we look for technically sound, driven individuals that match your company’s culture.
NTG will tailor our recruiting efforts to your needs. For example, our team will prescreen the candidate(s) and determine if they are the right fit for the company and position. The hiring manager will receive a full candidate description highlighting the relevant skills related to the job. If the client would like to proceed with an interview, NTG will assist in coordinating the interview with both parties. We pride ourselves in being thorough. We interview all of our candidates and only present those who fit the requirements of your positions.
Other services include weekly updates to the hiring managers, reference checks, onboarding prescreening assessments and offer negotiations.

NTG Staffing provides complete onboarding services

Recruiting Services include:

  • Temporary Services
  • Temp-to-Perm Services
  • Payrolling Services (NTG is currently the National Payrolling Provider for some of the largest Operators and Project based services
  • Volume Recruiting Campaigns
  • Client Hiring Events
  • RPO (Recruitment Process Outsourcing) and Onsite Assistance
  • Direct Placements & Confidential Searches
  • All payroll services included
  • FLSA driven conversion needs (1099 conversions to W-2)

NTG Staffing provides complete onboarding services:

  • New Hire paperwork (applications, W-4s, I-9 Verifications, drug/alcohol pre-screenings, background checks). NTG is an E-Verify company.
  • Weekly or bi-weekly payroll
  • Online portal for timesheet approvals and submittals
  • Online portal for employees to retrieve check stubs via Payroll system
  • Direct Deposit
  • Medical Benefits provided to contractors (eligibility on the first day of the month following 60 days of full time employment)
  • 401K provided to contractors after 90 days of full time employment, after one year (100% match on the first 3%; 50% on the next 2%)
  • Online benefits portal (contractors can elect their coverage, access to 24 hour help desk for benefit related questions)
  • NTG covers Worker’s Compensation Insurance
  • Federal/State taxes
  • Unemployment
  • General Liability coverage
  • Payroll processing fees

Recruiting Services include:

  • Temporary Services
  • Temp-to-Perm Services
  • Payrolling Services (NTG is currently the National Payrolling Provider for some of the largest Operators and Project based services
  • Volume Recruiting Campaigns
  • Client Hiring Events
  • RPO (Recruitment Process Outsourcing) and Onsite Assistance
  • Direct Placements & Confidential Searches
  • All payroll services included
  • FLSA driven conversion needs (1099 conversions to W-2)

NTG Staffing provides complete onboarding services:

  • New Hire paperwork (applications, W-4s, I-9 Verifications, drug/alcohol pre-screenings, background checks). NTG is an E-Verify company.
  • Weekly or bi-weekly payroll
  • Online portal for timesheet approvals and submittals
  • Online portal for employees to retrieve check stubs via Payroll system
  • Direct Deposit
  • Medical Benefits provided to contractors (eligibility on the first day of the month following 60 days of full time employment)
  • 401K provided to contractors after 90 days of full time employment, after one year (100% match on the first 3%; 50% on the next 2%)
  • Online benefits portal (contractors can elect their coverage, access to 24 hour help desk for benefit related questions)
  • NTG covers Worker’s Compensation Insurance
  • Federal/State taxes
  • Unemployment
  • General Liability coverage
  • Payroll processing fees

Recruiting Services include:

  • Temporary Services
  • Temp-to-Perm Services
  • Payrolling Services (NTG is currently the National Payrolling Provider for some of the largest Operators and Project based services
  • Volume Recruiting Campaigns
  • Client Hiring Events
  • RPO (Recruitment Process Outsourcing) and Onsite Assistance
  • Direct Placements & Confidential Searches
  • All payroll services included
  • FLSA driven conversion needs (1099 conversions to W-2)

NTG Staffing provides complete onboarding services:

  • New Hire paperwork (applications, W-4s, I-9 Verifications, drug/alcohol pre-screenings, background checks). NTG is an E-Verify company.
  • Weekly or bi-weekly payroll
  • Online portal for timesheet approvals and submittals
  • Online portal for employees to retrieve check stubs via Payroll system
  • Direct Deposit
  • Medical Benefits provided to contractors (eligibility on the first day of the month following 60 days of full time employment)
  • 401K provided to contractors after 90 days of full time employment, after one year (100% match on the first 3%; 50% on the next 2%)
  • Online benefits portal (contractors can elect their coverage, access to 24 hour help desk for benefit related questions)
  • NTG covers Worker’s Compensation Insurance
  • Federal/State taxes
  • Unemployment
  • General Liability coverage
  • Payroll processing fees