Temp-to-Hire
An arrangement where a worker starts in a temporary role — often through a staffing agency — with the possibility of converting to a permanent, direct hire after a trial period.
Temp-to-hire is an arrangement where a worker starts in a temporary role — often placed through a staffing agency — with the possibility of converting to a permanent, direct hire with the client company after a defined trial period.
During the temporary period, the worker is typically employed by the staffing agency, not the client company, and works at the client's site under a trial arrangement with a defined length (commonly 30-90 days). At the end of that period, the client decides whether to convert the worker to a permanent, direct hire on its own payroll — usually for a separate conversion fee paid to the agency — or the assignment simply ends if it isn't a fit for either side.
How a conversion typically plays out
A distribution center brings on a worker through a staffing agency on a 60-day temp-to-hire arrangement. For those 60 days, the worker is on the agency's payroll while working at the client's facility. At day 55, the client's supervisor confirms the worker has performed well and wants to keep them; the agency processes a conversion, the worker moves onto the client's own payroll as a permanent employee, and the client pays the agency's agreed conversion fee for that placement.
In staffing & high-volume hiring
It gives both sides a real trial run before committing: the client company gets to see actual on-the-job performance before extending a permanent offer, and the worker gets to evaluate the role and workplace before accepting one. For a staffing agency, temp-to-hire placements typically carry their own fee structure and conversion terms, distinct from a straight temporary assignment or a direct-hire placement.
Common mistakes
- Not clarifying the conversion fee and terms with the client upfront, which can create disputes if a conversion happens sooner than either side expected.
- Treating the trial period as purely evaluative for the employer while ignoring that the worker is also evaluating whether the role and workplace are a fit for them.
- Letting a worker's trial period lapse without a clear decision either way, leaving both the worker and the client uncertain about the arrangement's status.
Related terms & reading
Temp-to-Hire FAQ
Who employs the worker during the temp period?
Typically the staffing agency, not the client company — the worker is on the agency's payroll during the temporary period and moves to the client's payroll only if and when the conversion to permanent happens.
How long does a typical temp-to-hire trial period last?
It varies by industry and agency agreement, but 30 to 90 days is common — long enough to genuinely assess fit without dragging out the decision indefinitely.
Is there a fee for converting a temp-to-hire worker to permanent?
Usually, yes — staffing agencies typically charge a conversion fee to the client company when a temp-to-hire worker moves to the client's own permanent payroll, separate from the ongoing markup charged during the temporary period.
Build a faster, smarter hiring engine.
Start your 30-day free trial — no setup fees, no contracts. Or see ATS Mako in action.
30-day free trial · No setup fees · No long-term contracts