- Direct hires are a staffing solution that consists of hiring an employee for a long-term position, that reports directly to the employer.
- One of the benefits of direct hiring is gaining access to top-tier candidates and having more engaged employees.
- At AccessPoint, we provide direct hire services to help businesses find the best talent. Reach out to get started!
When it comes to filling talent gaps within your company, a question may arise: Which staffing solution should we choose? Direct hire, temp-to-hire, and even contract workers are some of the options available.
If you’d like to invest for the long term and secure top talent, then direct hiring may be the right move.
Read on to learn what is a direct hire, the benefits for employers, the different stages of the process, and how to get started.
Let’s dive in!
What Is a Direct Hire?
In talent acquisition, a direct hire means that an employee is hired directly by a company for a permanent, long-term position. In this scenario, the new employee reports directly to the company and they’re added to its payroll system, instead of working through an agency. They also have immediate access to employee benefits.
Direct hires typically take place when a company has a specific need for permanent staff, especially for management positions or high-skill roles. The company can either choose to find candidates by themselves or with the help of a staff recruiting agency (in which case, the process is known as direct placement hiring).
Differences Among Direct Hire, Temp-To-Hire, and Contract Worker
There are different kinds of employment, based on a company’s needs and the nature of its projects. Let’s break down the differences between direct hire, temp-to-hire, and contract worker arrangements:
In this case, an employer recruits and hires an employee directly for a permanent, full-time position. Direct hires receive benefits such as health insurance, retirement plans, and paid time off directly from the employer.
Temp-to-hire arrangements involve initially hiring an employee temporarily through a staffing agency, to transition them to a permanent position within the company after a specified trial period. During the temporary period, the employee remains on the staffing agency’s payroll and may receive benefits through the agency.
If the employee performs well and meets the company’s requirements during the trial period, they are offered a permanent position with the company and become a direct hire.
Contract workers are hired by a company on a temporary or project-specific basis to complete a particular assignment or project. They are not considered employees of the company but rather work as independent contractors or freelancers.
Contract workers are typically responsible for their taxes, benefits, and insurance.
Benefits of Direct Hiring
Direct hiring is the most traditional approach to staffing. Because it’s centered on cultivating long-lasting relationships, this approach can lead to higher retention rates and contribute to the company’s success and stability.
These are the top 3 benefits of direct hiring for employers:
1. Access to a Larger Pool of Talent
Usually, top performers won’t accept short-term or trial positions. Offering a direct hire increases your chances of finding high-quality talent, especially when filling high-skill roles.
2. Employee Loyalty and Engagement
Direct hires are intended for permanent positions, so they involve a higher commitment from employees who are choosing the company for the long haul. By making employees feel more stable and secure while providing premium benefits, direct hire can improve employee retention.
When it comes to improving employee loyalty, companies also need to watch out for other aspects that employees might find decisive, such as flexible work arrangements. According to a recent Gartner HR survey,
“Top drivers cited by candidates for accepting a new job offer include greater flexibility (59%), better work-life balance (45%), and higher compensation (40%).”
3. Cultural Fit
You can focus on finding candidates who not only have the necessary skills and experience but also align with the company’s culture and values.
How Does Direct Hire Work? – Direct Hire Process
The direct hiring process goes through a series of stages, including:
- Identifying job requirements. Which role do you need to fill? Start by defining your staffing needs and the requirements for the position, including qualifications, skills, experience, and any other relevant criteria.
- Recruitment. Use different channels to advertise a job opening, such as your company’s website, job boards, social media, professional networks, and employee referrals.
- Screening and interviewing. Once you receive applications, it’s time to screen resumes and cover letters to shortlist candidates who meet the initial criteria. Then, it’s time to conduct interviews to assess candidates’ qualifications, experience, skills, and fit with the company culture.
- Selection and offer. Choose the most suitable candidate for the position. This stage involves extending a job offer to the candidate, in which you outline details such as salary, benefits, start date, and other terms of employment.
- Employee onboarding. Once the candidate accepts your job offer, the onboarding process begins. Onboarding often requires completing paperwork, providing your new hire with access to the company’s systems and resources, and making sure they are familiar with the company’s policies, procedures, and expectations.
Find Better Talent with AccessPoint
Finding the right fit for a position can be quite challenging, especially with the ongoing shortage of skilled talent across various sectors.
“Nearly 4 in 5 employers globally report difficulty finding the skilled talent they need.”— Manpower, 2023 Global Talent Shortage
More than ever before, the talent acquisition process requires smart strategies, adding more workload to already busy HR teams juggling multiple responsibilities. If that’s your case, working with a recruiting organization can be an effective solution.
Our recruiting specialists are ready to support your company’s HR needs across multiple industries, including automotive, engineering, and information technology. According to a LinkedIn study,
“70% of the global workforce is made up of passive talent who aren’t actively job searching.”
We are experts at finding those candidates and bringing them your way.
AccessPoint Recruiting Strategy
Here’s how our direct hiring strategy works — and why you should consider partnering with us:
- We are prepared to find the best candidates. All our recruiters are certified by the Alliance of Information and Referral Systems (AIRS), meaning they are ready to tackle even unique employment needs.
- We apply aggressive online recruiting methods. We use multiple job posting platforms and social media networks to cast a large net of applicants.
- We search for free. We carefully sift through all the applicants, but you only pay when we find the right fit for your business.
Ready to elevate your talent acquisition process? Contact us and we’ll help you find top-notch talent!