Direct placement staffing, also known as direct hire staffing, is usually performed by a professional staffing company or a recruiter. Hiring in this way leads to the immediate placement of the worker on the payroll of the end client. Directly placement staffing usually involves full-time positions.
Direct placement is different from temporary staffing and contract to hire because they are either for a short-term need or an evaluation period possibly leading to permanent employment.
Contract to hire is usually for a longer term than temporary hire. It also gives more flexibility by providing the end client the chance to onboard the contractor after their contract expires.
For both contract to hire and temporary staffing, the worker is being paid by the staffing agency instead of the end client
From the first day of employment, the direct hire is on your company payroll on a full-time basis, which lets you avoid the higher costs that are usually associated with the contract-to-hire worker. This often means the worker has more buy-in to the goals and culture of your organization; these aspects can be more difficult when bringing in a contract or temporary employee who knows they may not be there in the long run. Employers who have bought into the organization and culture are often more effective and engaged in their work, which leads to more longevity and increased worker productivity.
Bringing in a new employee takes a lot of work. When it’s done right, it can be challenging to find the ideal person to fit with the job and team. This can be even more problematic when your primary job isn’t hiring and retaining staff. Hiring with direct placement services means you have a dedicated team of professionals finding the best full-time candidate for your position. This often leads to a better hire who stays longer.
Losing and replacing employees can be expensive. Studies show that up to 85% of new job hires aren’t as good as the hiring manager hoped. Direct placement professionals are experienced in finding employees that are a good fit skill-wise and culturally. They also know how to find the red flags that could lead to a poor hire. If you’re considering a direct placement recruiter, make certain to ask if they have a replacement guarantee. Most high-quality staffing agencies feature a client satisfaction guarantee and will replace a worker at no cost if the organization decides they’re a bad fit within 60 days.
Looking for direct hire candidates means you may get better candidates who are attracted to the job because of your company's benefits. The benefits of hiring agencies may not be as robust as what your company offers full-time hires. Many good candidates want to get the best benefits possible and may prefer being hired full time by your firm.
Temporary staffing is often at a quick pace. The idea is to get the right worker in the role as soon as you can. This is helpful for reacting to abrupt changes in workload, but there may not be as much of a chance for team development and training compared to hiring someone full- time. A direct hire is signing a contract with your organization for the long haul, so you can feel comfortable putting more time and money into their skill and professional development. Also, you can take the time to be sure the employee is the right culture fit for other people on the team. This all can bring a greater sense of camaraderie and commitment to the company and may reduce employee turnover.
Most people looking for work want a full-time job instead of something part-time or contract basis. Some excellent job candidates will not consider working for an organization if it isn’t full- time. Using direct placement services means you’ll probably see more high-quality job candidates apply for your position. This can make it easier to hire the best person.
Orientation: This is the consulting phase where the hiring agency gets to know your organization, the job description, and what you’re looking for.
Marketing: Creating effective advertisements to ensure you get a high-quality pool of full- time candidates.
Sourcing: Tapping networks to find people who may be passively interested in a job change.
Parsing: Reviewing a high number of resumes and worker profiles to slim down the talent pool.
Screening: Doing phone interviews and asking the questions the best recruiters ask to find the ideal candidates for your full-time position.
Presenting: Giving you resumes, profiles, and recommendations about the best job candidates.
Negotiation: After your company interviews the best direct hire candidates, the recruiter makes an offer and handles negotiation with the candidate as needed.
Follow-up: The recruiter should continue to work with you and the job candidate after the hiring process is complete.