A contract-to-hire refers to a situation in which a candidate is first taken up for employment on a temporary or contracting basis with a prospect of being taken up as a full-time permanent employee after the expiry of the term of the contract. This would allow the employer to analyze the performance and overall suitability of the candidate before making a long-term commitment.
This provides a window for contract-to-hire candidates to display their prowess and acquire extensive experience in the organization. That would also allow them to see if the company and the role are of interest to their career aspiration. If the contract period has been fruitful to both, it would lay a good foundation for permanent employment, with greater confidence and mutual understanding on either side.
You may also be interested in learning about these terms:
Contract-to-Hire
Temporary-to-Permanent
Performance Management
