Definition and classification
Temp-to-perm („temporary to permanent") means the process in which a temporary worker initially deployed through Staff leasing is taken on into permanent employment with the client company. It is a hybrid of staff leasing and subsequent placement: once the temporary assignment period has run, the client can decide on permanent employment. If that does not happen, the employment contract between the staffing company and the worker remains and the assignment with the client ends.
How does temp-to-perm work?
First the staffing company leases the worker temporarily. In most cases an assignment period of around six months is set (the range is usually three to twelve months) before permanent employment follows. If the client decides to take the person on, the worker moves from the staffing provider to the employer directly. The terms of the transfer are usually set out in the leasing agreement (AÜV) .
How it differs from permanent placement
Temp-to-perm differs from pure permanent placement, where staff are placed directly and the provider receives a one-off commission on a successful placement. With temp-to-perm, taking the person on after the period defined in advance is as a rule free of charge. Taking someone on earlier than that arrangement allows is usually possible by agreement with the staffing provider, for a fee.
What are the benefits of temp-to-perm?
For the client the decisive advantage is being able to „try out" a worker under real conditions before employing them permanently – that lowers the risk of a poor fit professionally or personally and keeps the flexibility of staff leasing for periods of high demand. The temporary worker also gets to know the company and the role during the assignment and can weigh up whether the fit is right. Note the maximum assignment period of in principle 18 months – if it is exceeded, an employment relationship with the client company arises automatically anyway.