As an alternative to directly permanently employing an employee, this service eliminates the risks in taking on the wrong person simply because they were excellent at selling themselves in the job interviews.
Some companies are not in the position to take the risk of permanently employing the wrong person so Contract-to-permanent gives you, the employer the opportunity to assess the candidates on a contracted basis for a period of time with the view to then permanently employing them on a full-time or part-time basis.
As a company you actually can have the best of both worlds. The candidate will work with you on a full-time basis (for a given period time) whilst not actually being statutorily employed. This gives you the chance to find out if the candidate is the right person for the job in regards to whether they bring the right knowhow, skills and personality to the company.
It is important to use this time to assess the full capabilities of the candidate as the candidate will use his time to assess you as a company.
IRS will receive a daily or weekly fee for the contracted service then there will be a reduced recruitment fee for the permanent service.