When a company chooses to hire employees on a contract to hire (c2h) basis versus direct hire, it means that the candidate is hired through placement agencies on a temporary or contract basis. If the c2h candidate is a good fit, the company can then choose to hire him/her as a permanent employee. This kind of position is different from independent contract jobs, who are self-employed freelancers.

A contract to hire employees works for the company on a contractual basis, but remains on the payroll of the placement agency.  However, it is important to ensure that the staffing firm and the candidate understands the terms of the employment clearly to avoid any unforeseen difficulties.