C2H Definition: What Does Contract to Hire Mean?

Patrick Ward Patrick Ward Follow May 13, 2021 · 1 min read
C2H Definition: What Does Contract to Hire Mean?

C2H Acronym Definition

The acronym “C2H” stands for “Contract to Hire”. C2H arrangements are common when a company wants to hire for a role but is strapped for cash to make a full-time offer, or wants to put a candidate through an extended trial period.

What Does “C2H” Mean?

C2H employees are particularly popular with fast-growing businesses which may need a full-time function filled for a short period of time, and during economic recessions, when it may be difficult to justify a full-time employee and all the benefits costs associated.

Is C2H (Contract to Hire) and Contracting the Same Thing?

In most cases, a “C2H” employee is sourced via a staffing agency. The employee is technically employed by the staffing agency, meaning that the company engaging the C2H is under no obligation to continue employment past the end of the the C2H end date, or provide benefits. The staffing agency handles administrative items like workers compensation, tax responsibility, etc.

In some cases, companies may use the term when engaging a self-employed contractor, when attempting to incentivize them to overperform by promising a job offer if they “meet expectations.”

This term is commonly used when engaging contractors who are expected to work full-time in an office setting, to excuse the fact that they are not receiving benefits such as insurance or a 401K. This is not reccomended, as the IRS will consider any individual operating under your exclusive direction to be an employee, and disputes with the contractor could result in steep fines for your business.

How to use C2H in a sentence

Our growth trajectory isn’t compatable with a long hiring process. Let’s bring on some C2H candidates.

How long is a Contract to Hire (C2H) agreement?

Contract to Hire agreements are generally 3–6 months in duration. Anything longer than this can become a legal liability for the employer.

Patrick Ward
Written by Patrick Ward Follow
Hi, I'm Patrick. I made this site to share my expertise on team augmentation, nearshore development, and remote work.