Converting Contingent Workers to Employees and Reporting Impact

Summary

When creating a new work relationship, there is no Action of "Hire", so how does this impact "New Hire Reporting" and Benefits?

Content

I need some assistance on determining the best method for converting contingent workers to employees and vice versa.

Method 1

1. End Contingent Worker Placement
2. Add Work Relationship with an action of "Add Employee Work Relationship"

Method 2

1. Try to hire existing person and receive message there is a duplicate.
2. Use the existing person and complete the hire process with an action of "Hire"

These 2 methods will both work; however the new hires will appear with different actions when creating a new hire report. What are  the best practices for this process? It seems to me that Method 1 will be better at preventing potential duplicate persons while Method 2 may make reporting easier.