- Conversion is a low-risk way to make a permanent AI hire: you have already seen the work.
- Agree conversion terms in the original contract, not at the end.
- Plan the switch so benefits, notice periods and probation are handled cleanly.
One advantage of outsourced and project-based hiring is that you get to know the person's work before making a permanent commitment. When it goes well, conversion is often the best hire you will make.
When to convert
- The role has become ongoing rather than project-based.
- The person has delivered measurable results and is trusted by the team.
- Headcount has opened up, or the cost case for a permanent role is now clear.
- You want to keep know-how in the company long term.
How conversion fees usually work
Most agreements include a conversion clause: a fee if you hire the person directly within a set period, often reducing the longer they have worked through the partner. Agree this at the start so there are no surprises. At GI Executive, conversion pricing is set out upfront in the contract.
Making the switch smooth
- Align the start date of the new contract with the end of the old one to avoid gaps in insurance or MPF.
- Decide whether to recognise previous service for probation or benefits.
- Check notice periods on both sides.
- Update system access and internal reporting lines on the same day.
If conversion is not right
Sometimes the work is done, or priorities change. Ending at the agreed term is equally valid, and the knowledge transfer plan should make sure the workflows keep running after the person leaves.
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