If you are looking for a new job, you have probably come across terms such as ‘temp-to-hire’ and ‘direct hire’ in job postings. While there are subtle differences between the two, their true meaning can be somewhat confusing to job seekers.

Traditionally, direct hire sounds like the smarter choice, because ‘temporary work’ can often be thought of as open-ended and lacking security. However, the intricacies of each may persuade you to reconsider which direction makes the most sense for your career.

Read on for a rundown on the two different (yet similar) employment types, so that you can make an informed decision when looking for your next great job.

What is a temp-to-hire?

A temporary or contract employee is someone who is brought into a company for a limited period of time. They are usually hired to fill in for employees that are on leave for personal reasons or to help supplement busy work periods, like the holidays.

Sometimes, when the temporary worker’s designated duration is over, employers will choose to offer them a full-time position after seeing how well they fit into the role. This is where the term ‘temp-to-hire’ comes in. In these instances, the employee’s stint as a temporary worker can be seen as a test-run for whether or not they will be a good fit with the company. While they are a temporary worker, they are typically still employed by the staffing agency. There are few differences between this, and a standard probation period, beyond semantics.

What is a direct hire?

A direct hire is someone who is hired for a permanent position, usually full-time. They are hired for the long-term right off the bat. The process of employing a direct hire is typically a little bit longer than a temporary one, because the employer has to think more thoroughly about who they want to bring on to their team for the foreseeable future. While a probationary period still exists, there is nevertheless a feeling among the team and new hire that they’re in it for the long hall.

Permanent, full-time jobs appeal to a lot of people because of the sense of security associated with them. There are also typically benefits and perks that come along with a full-time role, such as health insurance and paid vacation time. However, as mentioned, permanent roles still require a probationary period to be passed before the employee can enjoy any of the benefits that come with the job. A direct hire can also be let go at any point during the probationary period.

Which one should I choose?

In a lot of ways, temp-to-hire positions and direct hire positions share a lot of similarities. Both go through some sort of ‘temporary’ phase before being able to reap the benefits of being a full-time employee. Whether it be the ‘temporary’ phase of the temp-to-hire’s path, or the probationary period for the direct hire, there is a certain period of time before an employee truly becomes ‘full-time’.

Aside from these technicalities, there are benefits to both types of position. Direct hire work appeals to many because of its inherent permanence. Knowing that you can anticipate having a job for the long-term is very comforting for a lot of people. Alternatively, temporary work is appealing to some because it lacks permanency; many people enjoy not being committed to a contract before they test the waters. These kinds of positions allow individuals to try a variety of work, enjoy flexible schedules and make fast money.

Are you looking for a new job in the Houston area? LPC Personnel recruits for many temp-to-hire and direct-hire positions. Reach out today to see if we have something for you!