Temp-to-Hire and Direct-Placement Decision Workbook

Should you convert a temporary worker now, wait until the conversion fee expires, or pay the placement fee? Compare the costs of each option and see which makes the most financial sense.

Compare your hiring options in one workbook

The decision calculator, buyout schedule, and portfolio view open with a worked example. Works in Excel or Google Sheets.

• Start Here. Two pages explaining how the tabs fit together and which to use first.
• Temp-to-Hire and Direct-Placement Decision Workbook. Includes the decision calculator comparing three first-year hiring paths, the declining buyout schedule through the waiver threshold, a comparison of converting now versus waiting, a portfolio view across open roles, and an assumptions and sources tab with every default dated. Opens on a worked example. Works in Excel or Google Sheets.
• TrueStep HR Product License. Explains permitted uses and restrictions for the files, including the consultant and white-label tiers.
• Using This Workbook in Google Sheets. A two-minute guide to importing the workbook into Google Sheets instead of Excel.
• Quick Reference (PDF). The whole workbook on one page, including what each tab is for, what you enter, and how to read the result.

How the hiring comparison works

Compare the hiring costs, check how the conversion fee changes over time, and use those figures when negotiating agency terms. The waiver schedule shows when you can convert a worker at a lower cost.

• Calculate first-year hiring costs. Enter salary, employer burden, agency bill rate, and fees. Compare direct hire, temp-to-hire, and direct placement side by side.
• See how conversion fees change. The fee decreases as the worker completes more hours and reaches zero at the waiver threshold. Compare the conversion fee today, next month, and at the waiver.
• Compare converting now with waiting. See the cost of paying the conversion fee and moving the worker to payroll now versus continuing at the agency bill rate. The workbook calculates both options and identifies the lower-cost choice.
• Review costs across open roles. The portfolio view compares hiring costs for ten open roles and flags where a different hiring path may be the lower-cost choice.

See which hiring option costs less

The lowest-cost option depends on the role, agency fees, and timing. The workbook shows when temp-to-hire, direct placement, or direct hire has the financial advantage.

• Editable agency fee assumptions. The workbook models buyouts as a percentage of first-year salary, fee waiver thresholds in hours worked (the default is 520), and a 20% placement fee as a planning assumption. You can replace every default with the terms from your agreement.
• Check the conversion fee first. Enter the hours already worked. If the worker has reached the waiver threshold, the workbook shows a $0 conversion fee before calculating the other costs.
• Compare first-year costs. The workbook calculates costs over year one, when the hiring paths differ, and identifies that time frame on the assumptions tab.
• A worked example in every tab. The workbook opens with a realistic role so you can see how each calculation works.

Who this is for and other options

Built for

• Managers deciding whether to convert a temporary worker and pay a conversion fee this month.
• HR leads and recruiters comparing agency terms across several open roles.
• Consultants preparing hiring cost comparisons for clients, with calculations they can show.

If you are looking for

• Comparing one role? The free Temp-to-Hire Breakeven Calculator compares all three hiring paths in your browser.
• For a program-wide comparison, the Contingent Labor Cost and Conversion Workbook models the financial case for converting contingent workers.

Before you buy

How is this different from the free calculator?

The free calculator compares costs for one role in your browser. This workbook adds the declining buyout schedule, a comparison of converting now versus waiting based on actual hours, the portfolio view across open roles, and the sourced assumptions tab. You can also save your work.

Where do the fee defaults come from?

The defaults model typical vendor contract terms. Conversion buyouts are modeled as a percentage of first-year salary and can decline as hours are worked. Fee waiver thresholds are measured in hours worked, such as 520. Direct placement fees are often negotiated as a percentage of first-year salary, and the 20% default is a planning assumption. Each assumption is dated on the assumptions tab and can be replaced with the terms from your agreement.

Does it tell me which path to pick?

The workbook calculates each hiring path using your inputs and identifies the lowest-cost option, including situations where continuing at the agency bill rate costs less. You can review the numbers behind the recommendation before deciding.

Is this legal or tax advice?

The workbook compares costs using planning figures. Have qualified counsel review the fees and waiver terms in your agency agreement before relying on them.

Is it a subscription?

No. This is a one-time purchase with no recurring fee.

What happens when the figures change?

Each file carries a last-reviewed date so you can see when it was checked. The assumptions tab dates every default to its source, so you can update a changed rate in one cell.

What is the refund policy?

Digital products are covered by a 30-day money-back guarantee. To request a refund, email support@truestephr.com or reply to your receipt within 30 days of purchase.

What happens after I buy?

Your download link appears immediately after checkout. Your receipt arrives by email with the same link. Open the Start Here page first for the recommended order. For setup questions, email support@truestephr.com.

Can I expense this purchase to my business?

A tool you use for work often qualifies as a deductible business expense, but that depends on your situation, so confirm with your accountant. Your receipt arrives by email at checkout and works as documentation.

Planning figures use sourced, dated defaults. Confirm your own rates and terms before acting on the outputs. General information, not legal or tax advice.

How the download works

Your files arrive as a single ZIP download, best opened on a computer. Save it, extract it (right-click and select Extract All on Windows, or double-click on a Mac), then open the Start Here file first. PDFs open in any reader, and editable files work in Microsoft Excel or free equivalents, including LibreOffice and Google Sheets. No other software is needed. Step-by-step help for every device is at truestephr.com/pages/download-help.