Why You Should Consider a Direct Hire vs. Temp-to-Hire

May 23rd, 2017

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When using a staffing agency to fill open roles, you may be wondering whether you should offer a direct hire or temp-to-hire position. Because both options provide multiple benefits, it’s important you consider your company’s needs. Here are three criteria you should consider when deciding whether to offer a direct hire or temp-to-hire position.

Time Frame

If you need to quickly fill a permanent role, consider offering a direct hire position. Because the staffing agency has access to a continually growing pool of both active and passive candidates, you’ll be able to select which candidate is the best fit for the role. Also, because you have a small group of candidates to interview, you can hire in a shorter time frame and increase your chances of securing the candidate you want.

If you need to fill a permanent role but aren’t able to fully commit to a full-time role, consider offering a temp-to-hire position. The staffing agency should have qualified candidates available for you to meet with before deciding which one to bring aboard. Also, because the role is temporary for a set time, you’ll be able to determine whether the candidate should be hired on full-time.

Cost

The cost of offering a direct hire position depends on various factors. For example, because the direct hire gets added to your payroll from the start, you pay for their salary and benefits and pay the staffing agency’s placement fee. Also, if your direct hire doesn’t work out within a predetermined time frame, some staffing agencies (like SourcePoint Staffing) will guarantee another candidate keeping your company from incurring additional costs.

The cost of offering a temp-to-hire position depends on various factors as well. For example, during the temporary time period, you pay the staffing agency for the candidate’s wages/salary. If you decide to permanently hire the candidate, you directly pay their wages/salary, benefits, as well as the staffing agency’s placement fee. Also, if you quickly find a candidate who consistently adds value to your company, you’ll most likely hire the worker full-time. However, if you bring aboard candidates who consistently don’t meet your criteria, you’ll have greater costs due to increased turnover and decreased productivity.

Flexibility

Offering a direct hire position offers some flexibility. Because you gain access to the staffing agency’s most qualified active and passive candidates, you can choose from top professionals in your industry. Also, you can negotiate a salary and benefits package that both fits your budget and satisfies your candidate.

Offering a temp-to-hire position gives you additional flexibility. For example, because you provide a trial period for the candidate, you have time to assess whether they’re the best fit for the role. Also, when the trial period ends, you have the option of hiring the candidate full-time or moving on to one who may be a better fit.

Work With a Staffing Agency in Milwaukee

These are three criteria you should consider when deciding whether to offer a direct hire or temp-to-hire position. For help filling your vacant roles in the Milwaukee area, contact SourcePoint Staffing!

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