Most of our service agreements provide for a fee in the event that we place someone with you that you decide will be an asset to your company. Typically we discount the fee over the time they work for your as our temp. Usually the discount will bottom out after about 3 months of workdays (521 hours).
It’s an often misunderstood provision that works as insurance for us. Like you, we need revenue to stay in business and our pricing like yours’, is a reflection of our costs.
One of the costs that can haunt us is unemployment insurance. Historically someone could file a claim resulting in costs to us for up to 2 years after they worked for us. Another is ever present danger of a worker’s comp claim.
The conversion fee is an asset that we can apply against those kind of surprises as well as meet our overhead in dealing with them. No one likes to pay more than they have to, but keep in mind the conversion fees help insure that we’ll be here to keep you supplied with the best people available!