Hiring Process

A reader writes…

I know that staffing agencies offer “temp-to-hire” as an option for adding employees, but they also offer “Direct Placement.”As a hiring manager, is one way more advantageous (or cost effective) than the other?

Dear, “Hiring Manager,”

The beauty of staffing agencies, as you mention, is that they offer businesses a variety of options.  It’s this flexibility that attracts companies all over the country (and world) to the staffing industry.

In my opinion, either option is advantageous and cost effective.  In both scenarios, you are free from having to deal with advertising, resume mining, interviewing, etc.  The steps involved with hiring qualified candidates can be all-consuming and very costly.  You save yourself a bundle (in terms of time, resources, and expense) within the search process alone.

If you choose to go the temp-to-hire route, you will be billed an hourly service rate for the work completed each week (most services pay temps and bill companies on a weekly basis).  While “assigned” at your company, the individual is actually an employee of the agency.  This means the service will handle all of payroll and will cover all fees related to benefits, workers’ comp, taxes, and insurance.  Likewise, in a temp-to-hire situation, you get the opportunity to assess the candidate (while on the job) to see if he or she is, in fact, a good fit for full-time placement. If they don’t work out… no problem, the agency will find a replacement — typically at no extra charge.

There is one downside that you may want to consider regarding the temp-to-hire option.  If you’re looking to attract a stellar candidate (who is already employed, but has the precise skills and experience you need),  they may be hesitant to jump ship from the stability of their current, “permanent,” position and move into a “temp” role – even though the intent is for the job to evolve into something more permanent.  It feels risky and uncomfortable – and may deter certain top performers from even expressing interest.

The “Direct Placement” option, on the other hand, is fairly cut and dry.  You would basically be charged a one-time placement fee (industry standard is about 20%-25% of the candidate’s annual salary).  Oftentimes, this fee comes with a guarantee (which may vary between 30, 45, or even 60 days), whereby you would receive a refund if the person completely flakes out on the job within a set period of time.

As you can see, there are several variables and a lot to consider.  No matter how you look at it though, relying on a service to fill your positions definitely has its advantages!

To the job seekers reading… 
I realize this sounds a bit abrupt, but it’s good for you to know what goes on from the hiring perspective and is all the more reason you should be your best and take long-term placements seriously if you want to land that full-time career.  While working a temp-to-hire position, you’re being reviewed and evaluated.  More and more often, staffing agencies are the gateway to getting in with big firms!

Managers OR Job Seekers – Do you have any “temp-to-hire” or “direct placement” stories you’d like to share?  Post your comments!

25 Comments (+add yours?)

  1. Alex gonzalez jr
    Oct 20, 2011 @ 10:19:57

    Thats bs oscar thats the problem with hiring process people with skills need a job and u still dont hire them because u guess r picky on who u hire by the way they appear u say ur hiring but u dont hire


    • m.capriola
      Oct 21, 2011 @ 10:20:19

      Unemployment is high and employers can afford to be picky. But they’ve always judged people on first impressions — “How does this guy dress and carry himself? How well does he communicate? Is he professional in appearance and demeaner?”

      You will be judged on your appearance. You will be judged on what you say and how you say it. And because employers have hundreds of applicants for every job, they may even hire based on what behavior you exhibit on your Facebook page. The competition is fierce, and anything you can do to make an employer say, “This guy’s a cut above average” is worth pursuing.


  2. bonita edwards
    Oct 07, 2011 @ 07:30:26

    Hello I am deaf ,hearing impaired my name is bonita edwards when I go to work start a place my cell phone number is 901 921 1808 .bonita write a on lines for applicaptions a yesterday . I let you know me ga


  3. James
    Oct 01, 2011 @ 11:55:23

    God Is Good!

    First I like to tell you that I never did assembly work before after doing security for a year. I just stayed focus and did a good job on the first thre days there. So you have to be patients and believe in yourself and set new goals for the new year.


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Anita Clew's blog posts are intended for general guidance and should never be taken as legal advice. In all instances where harassment, inequity, or unfair treatment is believed to be present, please consult your HR Department or legal representation.
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