We hired a guy who had been out of programming for ten years. We didn't know what we would get. Either he'd be decent to good after a ramp-up time, or there was a reason why he had been out of programming for ten years. So we "hired" him on a three month contract-to-hire, at a discounted rate. He worked out, and we hired him full time at a real salary.
What made you take the risk, if I may ask?
Well, we needed someone, and we were having trouble finding talent. And he did all right in interviews. But it wasn't that much of a risk. If he turned out to be a total loser on the job, all we were out was three months salary at the reduced rate.