Direct Hires vs. Temporary Hires: What Is Better for My Organization?

News and insights for job seekers and hiring managers.

Direct Hires vs. Temporary Hires: What Is Better for My Organization?

When you need to expand your workforce, partnering with a staffing firm can be an ideal option. You’ll have an easier time finding right-fit candidates thanks to their recruitment expertise and deep, vetted talent pools.

However, you’ll also have to determine which hiring approach is best. There are benefits and drawbacks to the direct hire and temporary hire strategies, and each option is better in some situations than others.

Fortunately, evaluating your needs can help you determine which method is best in relatively short order. If you need to figure out whether direct hires or temporary hires are better for your organization, here’s what you need to consider.

When Direct Hires Are the Best Option

With direct hire, the employee referred over by the staffing firm joins your payroll immediately upon hire. As a result, that makes this a particularly solid choice if you have a long-term need, as there’s no delay between the initial hiring decision and them becoming an official part of your team.

Direct hire programs are also viewed positively by top talent that know they have in-demand skills. In many cases, highly experienced professionals that know their worth in the marketplace aren’t as tolerant of the ambiguity that comes with certain other arrangements, such as temp-to-hire. By going with a direct hire option instead, you’re not alienating those candidates, which could make securing an exceptionally skilled job seeker far easier.

Finally, direct hiring is often more cost-effective. Typically, staffing firms charge flat fees for this service, a cost you only pay if you find a right-fit candidate that you ultimately bring on board. As a result, it can be a lower-cost option for filling a permanent position.

When Temporary Hires Are the Best Option

Temporary hires remain on the staffing firm’s payroll, at least initially. As a result, this hiring option is particularly well-suited to short team needs. Whether it’s a need to scale up in response to seasonal demand shifts or requiring a particular skill set for one project, the temp hiring strategy gives companies the flexibility they need.

Plus, it doesn’t come with the drawbacks of hiring and then laying off. Your organization has less liability and lower costs, particularly when relating to unemployment. You also avoid any expenses relating to adding them to your payroll, further reducing the overall cost.

Finally, if a temporary employee genuinely shines, there’s nothing to say that you can’t present them with a long-term opportunity. Many companies bring in temporary employees as a means of conducting working interviews. Then, if it’s a clear match, they make a permanent job offer, only bringing them on board once they’re confident in their capabilities. In turn, this results in better hiring choices, as less-than-ideal fits are identified well before they’re added to your payroll.

Ultimately, both options are viable, but they work best in specific scenarios. By using the information above, you can determine which applies best to your situation, allowing you to select a strategy that aligns with your needs.

Are you looking to expand your workforce? By partnering with Top Notch Personnel for your hiring needs, you can find top-tier candidates faster. Contact us to learn more about our service today.

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