Temp-to-Hire Vs. Direct Hire: What’s Best For Your Business?

In Staffing Solutions by adminburnetts

temp agency

temp agency

When you need to start staffing your team with new workers, you’ll have some important decisions to make. Before you bring in viable candidates or even start sifting through resumes, you’ll need to make a choice: will you work with a temp agency to bring in short-term workers (with the possibility of turning those positions into long-term ones)? Or will it be better to hire a full-time, long-term employee right off the bat?

Every business has its own set of unique needs and considerations. While more than 3 million temporary and contract employees work for America’s staffing companies during the average week and countless businesses choose to go the temp-to-hire route, it might be better for your culture to bring in a direct hire from the beginning. If you aren’t sure how to evaluate your options and come to the correct conclusion, this post might help.

Your Company May Want to Work With a Temp Agency If…

  • Your need for help will be short-lived: Companies that rely on seasonal help during the busiest times of the year or that have a long-term employee out on maternity leave might want to work with temp services to address their needs. This may also be the case if you have a big project that needs additional assistance to achieve set goals.
  • You want to test the waters: Temp jobs can be a great way to have a trial period for potential new employees. If the worker is a great fit for the company, you can transition the temporary position into a full-time one. And if the worker is simply not right for the job, you’ll both be in agreement that the position has a definitive end date. This can ultimately save your company money, as hiring the wrong person in a full-time capacity can come with huge costs.
  • Your industry is prone to temporary work: While any business can work with a temp agency to find qualified workers, there are some industries that are simply a better fit for temp-to-hire positions. For example, businesses in the medical and sales fields are often perfect for temporary placements. The same can be said for companies in IT, construction and manufacturing, and those in the non-profit sector.

Your Business May Benefit From Direct Hires If…

  • You have the need for a permanent employee: Simply put, if you already know that you have the need for a permanent worker and have the financials to support this position, you may not want to waste any time. This may be the case if the workload will be substantial for the foreseeable future and you feel that the advantages of hiring someone on a permanent basis will be worth what you’ll pay in benefits.
  • You’d rather use your resources to find the right person only once: A temp agency can certainly connect you with qualified people, but those people may not even be able to commit to a long-term position. Temp work is especially attractive to students, parents, and others who require a lot of flexibility. It’s possible you could fit someone who’s a great fit but who won’t be available to accept a long-term offer. If you don’t want to devote time, energy, and money to onboarding more than one worker for the same position, you may want to think about staffing your company with a direct hire.
  • You want to attract the top talent in your field: When you work with a temp agency, you will have access to a host of reliable and experienced employees. However, you may not always attract the exact candidates you’re after with a temporary placement. Because there’s no real job security or benefits package offered, a temporary job may not be so alluring to those who have the skills and knowledge your business really wants. There are a lot of perks that come with a permanent position, which will attract those who seek stable, higher level opportunities. If that’s more in line with your company’s goals, you may want to work with a recruiting agency to find appropriate candidates for a long-term role.

No matter what kinds of opportunities your business can offer, we’re here to help connect you with the right candidates. For more information, please contact us today.