The Pros And Cons Of A Direct-Hire Staffing Strategy

The Pros And Cons Of A Direct-Hire Staffing Strategy

When looking to fill a position, you can hire candidates on your own or you can use a staffing agency. These staffing companies have several staffing strategies, such as direct-hire staffing and temp-to-hire staffing. Direct-hire staffing strategies offer companies a chance to hire qualified candidates who immediately become permanent employees. Having dedicated and experienced staff is highly valuable for your company, but you may be wondering if direct-hire is the right staffing solution to go with. To explore if this strategy will suit your business, consider both the benefits and potential drawbacks direct-hire so that you can decide what is best for your company.

Pros Of Direct-Hire Staffing

A Wide Candidate Pool
When searching for highly qualified candidates who are interested in permanent positions, it can be difficult to find the right candidate. Right now it is especially difficult to find suitable candidates since the worker shortage has made these candidates extra valuable to all companies and they are fielding offers from your competitors. A direct-hire staffing company gives you access to its already established network of vetted and screened candidates.

Quick Integration
This is one of the main benefits of direct-hire over other staffing solutions. Direct-hire workers immediately join your workforce as full employees instead of temporary or probationary employees. Because of this, they can start integrating into the company right away. Direct-hire employees also tend to feel valued and part of the team from day one and they show excellent dedication and work ethic because of this. These workers are more likely to be loyal from the beginning, as they know they are with your company for the long term.

Candidates For All Positions
Direct-hire is an option for workers in all positions in construction industries. From maritime and safety personnel to oil and gas, direct-hire covers all construction industries. Direct-hire staffing solutions also can be used for all levels of construction staffing, from laborers to management positions.

Reduced HR Resources
Hiring through a staffing agency frees up your own staff instead of requiring them to sift through hundreds or thousands of resumes and cover letters. If your company doesn’t have the resources for fast, effective hiring, if you are rapidly growing, or if your back office staff aren’t knowledgeable with hiring processes, outsourcing to a direct-hire staffing company will allow your workers to focus on other pressing tasks.


Cons Of Direct-Hire Staffing

Wait Time
Because staffing agencies take the time to find the perfect direct-hire candidate, it can take longer for the position to be filled than if you were to use temp-to-hire staffing. Although it may take longer to fill the position, it is because the staffing company is finding a candidate who will be perfect for the role and who will stay with the company for a long time. Before letting the longer wait time deter you from using direct-hire, consider how valuable a long-term employee is to you versus if you are willing to risk a failed hire that leaves the position open again soon.

No EOR Buffer
When a company hires through a staffing agency for any type of position other than a direct-hire, the employee is hired through an Employee of Record (EOR) who is the legal employer that covers employee expenses and other legal aspects. When a company chooses a direct-hire employee, however, that company is taking full responsibility for the worker. This means the company will be covering expenses related to onboarding, training, benefits, insurance, and more. While these are expenses your company would cover if you were to hire without using a staffing company, these expenses are sometimes covered when you use temp-to-hire staffing solutions.


Direct-Hire Staffing Solutions

Although there are some cons associated with direct-hire staffing strategies, these should be weighed against the pros and cons of other hiring strategies. Hiring without the skilled and experienced workers of a staffing company can be far riskier than direct-hire staffing. To reap the benefits of a highly qualified staffing company that can find you the right direct-hire staff, partner with Wide Effect. With over 60 years of experience, Wide Effect can find the right workers for your company. To partner with Wide Effect and build a stronger workforce, call 1-262-298-0026 or fill out the online contact form.



We are the nation's top recruiting force for Construction, Maritime, Renewable Energy, Oil & Gas, and Safety Personnel. If you have staffing challenges at any level- labor to leadership, we have the solution. Connect with our recruiters in all 50 states now and learn more about our staffing blueprint for success.

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