Right-to-Hire, also known as Contract-to-Hire (C2H), is a hybrid staffing model that combines the flexibility of contract staffing with a pathway to permanent employment. The candidate initially works as a contractor employed by the staffing agency, and after a predetermined evaluation period (usually 3-6 months), the client has the option to extend a permanent offer.
This model has become increasingly popular in India's IT hiring landscape for several reasons. Clients reduce hiring risk by evaluating a candidate's actual performance, cultural fit, and team dynamics before making a permanent commitment. Candidates gain exposure to the organization and role before accepting a long-term position. Agencies earn contract margins during the trial period and a conversion fee if the candidate is absorbed.
The commercial terms of right-to-hire arrangements require careful structuring. Agencies typically charge a markup on the contractor's compensation during the contract period, plus a reduced placement fee (often 50-75% of a direct-hire fee) upon conversion. The contract should clearly define the evaluation period, conversion terms, buyout clauses, and notice requirements.
CVPRO supports right-to-hire workflows by tracking contract timelines, generating conversion reminders, managing the commercial transition from contract to permanent billing, and maintaining compliance documentation throughout the engagement. AI evaluation reports generated at the initial screening stage serve as baseline documentation that clients can reference during conversion decisions.