From its humble beginnings as an occasional accommodation to clients of temporary services, the temp-to-perm conversion has become a major source of revenue to the placement industry. Its popularity can be directly traced to permanent placement (“full-time”) services entering the temporary field. They don’t look at the conversion as the loss of an employee, but the gain of a placement fee. It’s a way to keep a qualified candidate “on ice” while giving the client the opportunity to “try before you buy.”
Unfortunately, three problems exist in enforcing conversion fees: Confusion, collusion and conspiracies. Understanding them will enable you to collect when the conversion occurs.