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Hiring + recruiting | Blog Post

Hiring Developers as Contractors First: the Value of Contract to Hire

John LaPerch

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As a CTO or hiring manager, you’re well aware of the challenges involved in building a skilled software development team. In this blog post, we’ll explore an innovative approach that can streamline your recruitment efforts and lead to successful collaborations with top-notch developers – hiring software developers as contractors first then bringing them onboard as full-time employees. This strategy – called contract to hire – offers numerous benefits, making it a highly valuable option for your organization.

Problems facing companies when hiring developers

Before diving into the solution, let’s empathize with the difficulties faced by businesses when hiring software developers. It’s a competitive market, and finding the right talent can be a daunting task. Traditional full-time hiring may not always guarantee the perfect fit and can be financially demanding.

Many companies struggle to find software developers who possess the necessary technical expertise and also align with the company’s culture and goals. Moreover, financial constraints make it challenging to hire full-time developers without compromising on other aspects of the organization.

Solution to many hiring challenges: contract to hire

Hiring software developers as contractors first is the solution to these hiring challenges. This approach allows you to efficiently assess their skills, work style, and compatibility with your company, all while staying within your budget.

Let’s explore the benefits of hiring software developers as contractors first then bringing them on as full-time employees:

  • Flexibility: Contractors provide businesses with greater flexibility in managing their workforce. You can scale up or down as needed, responding quickly to changing demands without long-term commitments.
  • Specialized Skills: Contractors often bring specialized expertise and experience that may not be available within the existing workforce. This allows you to access a diverse pool of talent, including experts in niche areas.
  • Cost-Effectiveness: Hiring contractors can be more cost-effective than hiring full-time employees, especially for short-term projects. You can save on employee benefits, training, and other overhead expenses.

Steps to implement contract to hire

  1. Define Your Requirements: Outline the specific skills, experience, and qualifications you’re looking for in a software developer. Be clear about the project’s scope, timeline, and expectations.
  2. Post Contract Opportunities: Advertise contract positions on relevant job boards, social media platforms, and professional networks. Emphasize the benefits of working as a contractor, such as flexible hours and potential for remote work.
  3. Evaluate Portfolios and Resumes: Shortlist candidates based on their portfolios, resumes, and cover letters. Look for evidence of problem-solving, relevant projects, and continuous learning.
  4. Conduct Interviews: Assess technical skills, communication, and cultural fit during initial interviews. Explain the contract-to-hire approach and clarify any questions candidates might have.
  5. Trial Projects: Offer a small paid trial project to the most promising candidates to gauge their abilities and work ethic.
  6. Assess Collaboration: Evaluate how candidates collaborate with your team during the trial project. Look for effective communication and positive contributions.
  7. Financial Viability: Compare the cost of hiring full-time developers with the expenses associated with contracting.

Hiring Software Developers as Contractors First

Hiring software developers as contractors first, particularly through Terminal’s platform, offers numerous advantages, such as flexibility, specialized skills, cost-effectiveness, and a unique no-penalty transition from contract to full-time roles. By adopting this approach, you can streamline your recruitment process, reduce hiring risks, and build a strong development team that aligns with your company’s vision.

The critical takeaway is that contract-to-hire, enriched by Terminal’s unique no-penalty transition feature, can be a significant tool in achieving successful collaborations and securing the best-fit developers for your projects. With thoughtful implementation and effective communication, this strategy can foster productivity, innovation, and long-term success for your organization.

Looking to start your contractor and contract to hire journey? Terminal’s full-time and contract developers, available in Canada, LatAm, and Europe can help transform your software development team. Talk to us today or start browsing our talent for free!

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