Converting Temporary Employees to Permanent Status: Tips for Employers
Temporary employees can provide an ideal solution for businesses that require additional help for a short period of time, without the long-term financial commitment associated with permanent employees.
However, in some cases, companies may decide to convert a temporary worker to permanent status if the worker has proven to be a valuable asset to the team.
The process of converting a temporary employee to permanent status can feel complex, but it is essential to understand the steps involved and negotiate the terms of the contract with the employment agencies in Baltimore.
Temporary to Permanent Employment Rules
When a temporary employee is provided by employment agencies in Baltimore, the process of converting them to permanent status depends on several factors. The contract for the service usually contains a clause that designates a fee that the staffing agency receives from the employer if the employee is converted to permanent status.
This fee can be up to 30% of the annual salary that is offered to the employee. Employers should negotiate the terms of the conversion and insert them into the hiring contract with the staffing company before the temporary employee begins.
This allows the employer to reduce or eliminate the conversion fee by setting an employment time period as a temp before offering a permanent position.
Staffing Contract Negotiations
Employers should treat the staffing contract like any other employment contract and negotiate the terms. Inform the Baltimore employment agencies in advance that a temp-to-permanent employee transition may be required if the temp worker performs well.
Negotiate the terms of the conversion, such as the hourly rate and the employment time period required as a temp before offering a permanent position. Employers should aim to negotiate the hourly rate close to the permanent pay rate for the position.
Contract to Permanent Process
If employers haven’t negotiated terms for the contract in advance, they should notify the staffing company of their interest in converting a temporary employee to permanent status and inquire about the fees.
If the employee accepts the permanent position, the employer can pay the conversion fee to the staffing company. The next step is paperwork and adding the employee to the payroll.
Advantages of Conversion
Converting a temporary employee to permanent status offers several benefits for employers. Firstly, it allows them to determine the fit of the employee into the business structure and the work ethic portrayed, without a large initial outlay of capital.
Secondly, temporary workers can allow employers to fill work slots during times of growth using skilled workers, yet offer the ability to release them in slow times.
Converting a temporary employee to permanent status can be a smooth process if employers understand the steps involved and negotiate the terms of the contract with the employment agencies in Baltimore MD.