Minimize the risk of a bad hire with KAZOKKU's temp-to-hire IT staffing solution. Bring candidates on contract for a minimum of 6 months, assess their technical performance and cultural fit firsthand, then convert them to permanent employees only when you are confident they are the right fit. All employment administration is fully managed by KAZOKKU.
Contract-to-hire IT staffing is a hiring model that lets companies bring on IT talent under a fixed-term contract before committing to a permanent hire. During the contract period, companies can assess a candidate's performance, technical skills, and cultural fit, then decide whether to convert them to a permanent employee. This model is also widely known as temp-to-hire IT staffing.
Please note: The minimum 6-month contract duration applies only to companies planning to use the Contract-to-Hire model. For businesses that require contract IT talent without the intention of converting them to permanent employees, KAZOKKU remains flexible and recommends contract durations starting from 3 months.
The IT professional works directly within your team under your day-to-day direction, while KAZOKKU handles all employment administration, including payroll, mandatory social security contributions, income tax withholding, and fixed-term contract compliance under Indonesian labor law.
| Key Aspect | Headhunter | Internal Recruitment | KAZOKKU Contract-to-Hire |
|---|---|---|---|
| Evaluation Period | Limited to the probation period | Limited to the probation period | Start with a 6-month contract and extend it up to 12 months if additional evaluation time is needed. |
| Recruitment Cost | High recruitment fees, up to approximately 20% of the candidate's 13-month salary. | Becomes an operational cost for the internal HR team | Conversion cost to permanent equal to only 1 month's invoice |
| Risk of Bad Hire | Replacement guarantee available, but usually only 3 months | All risk borne by the company | Lower (minimum 6-month evaluation + free replacement) |
| Employment Administration | Managed by the company after joining | Managed by the company | Fully managed by KAZOKKU throughout the contract |
Three main reasons CTOs and HR Directors choose this model.
Contract-to-hire allows you to assess a developer's technical skills, soft skills, and cultural fit through real on-the-job performance over a minimum of 6 months, with the option to extend the contract up to 12 months if additional evaluation is needed.
If a candidate does not meet expectations, the contract simply ends according to the agreed terms. This helps companies avoid the complexities of terminating a permanent employee and the potential severance costs associated with direct hiring.
Save up to 61% compared to traditional headhunters. Converting a contractor to a permanent employee costs only one month's invoice, while headhunters typically charge a recruitment fee of around 20% of the candidate's total annual compensation.
Example Calculation:
Five steps from consultation to the hiring decision, all fully facilitated by KAZOKKU.
Consult on the technical requirements, duration, and candidate profile you are looking for. Free of charge.
KAZOKKU searches for and screens candidates from a wide IT network and the active job market.
The candidate is contracted by KAZOKKU and placed at your company as temporary IT personnel.
You assess technical skills, non-technical skills, and cultural fit during the contract period.
Appoint the candidate as a permanent employee or end the contract, with the decision communicated 1 month before the contract ends.
This service is best suited for companies with the following conditions.
Companies that want to evaluate a candidate before committing to permanent employment
Short-term IT projects with the possibility of developing into a permanent need
Industries with high turnover rates (technology, finance, e-commerce)
Non-IT companies that want to build an internal IT team from scratch
HR teams that do not have the capacity for technical IT recruitment
Companies that need flexibility in building an IT team
A newly Series-A-funded startup needed a frontend and backend developer team for a large-scale platform launch. It had no time for a lengthy conventional recruitment process.
A large finance company undergoing digital transformation needed a mobile developer and QA specialist team for a strategic new mobile banking application.
For companies planning to use the Contract-to-Hire model, the minimum contract duration is 6 months. This period serves as the standard performance evaluation phase before a candidate can be converted to a permanent employee by the client. If additional evaluation time is needed, the contract can be extended for up to 12 months.
The conversion fee is equivalent to just one month's invoice, making it significantly more cost-effective than traditional headhunters, which typically charge around 20% of the candidate's annual salary.
Please inform us of your decision at least one month before the contract ends. This allows sufficient time for KAZOKKU and the candidate to complete the transition process smoothly.
Yes. If the company requires additional time to evaluate the candidate, or if the candidate has not yet decided whether to accept a permanent employment offer, the contract may be extended for up to 12 months, subject to the mutual agreement of the client company, KAZOKKU, and the IT professional.
KAZOKKU will provide a replacement candidate who better matches your requirements. The minimum 6-month evaluation period is not restarted. Instead, the replacement candidate completes the remaining contract period.
Reduce permanent-recruitment risk by starting with a more flexible contract scheme. We help you find the right IT talent before making a long-term decision.
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