Temp-to-Perm Hiring for Employers: How the Process Works in Ontario

What Temp-to-Perm Hiring Actually Solves

Every permanent hire carries risk - the resume looked right, the interview went well, and six weeks in, it's clear the fit isn't there. Temp-to-perm hiring (also called contract-to-hire) lets you evaluate real, on-the-job performance before committing to a permanent offer.

Temp-to-perm isn't a lesser form of hiring - it's a risk-reduction strategy. You get a 30–90 day working trial before the permanent commitment.

How the Temp-to-Perm Hiring Process Works

Step 1: Define the role and the conversion window

Tell your staffing partner what the role needs and how long you want to evaluate before converting - typically 30, 60, or 90 days.

Step 2: The agency sources and pre-screens candidates

The agency handles sourcing, screening, reference checks, and - where relevant - skills testing before presenting candidates.

Step 3: The candidate starts as an agency employee

During the trial period, the worker is employed by the staffing agency. You get the benefit of their labour without the payroll, WSIB, or HR administration overhead.

Step 4: You evaluate real performance, not interview performance

This is the core advantage: attendance, work quality, and team fit are all visible before you commit.

Step 5: You convert - or you don't

If it's a fit, you extend a permanent offer and the agency transitions the employee to your payroll (typically for a conversion fee, often waived or reduced after a set number of worked hours). If it's not a fit, you part ways with no severance obligation.

Temp-to-Perm vs. Direct Permanent Hiring: Cost Comparison

Direct permanent hire:

Full recruitment cost upfront

Full risk if the hire doesn't work out - including severance exposure

No trial period

Temp-to-perm through a staffing agency:

No upfront recruitment cost

Risk is contained to the trial period

Conversion fee only applies if you extend a permanent offer

Replacement candidates provided at no extra cost if the placement doesn't work out

Which Roles Work Best for Temp-to-Perm?

Temp-to-perm hiring is especially effective for warehouse and production roles, administrative and office support, customer service, and light industrial positions - anywhere day-to-day performance is a better predictor of success than an interview.

Western Jobs' Temp-to-Perm Track Record

At Western Jobs, a strong majority of our temp-to-perm placements convert to full-time employment - a sign that when the process is done right, both sides usually want to make it permanent.