If you don’t work in recruiting and staffing, the term direct hire may sound foreign. It's often used to refer to a company hiring someone directly, without the involvement of an outside partner like a recruiter. While that's right in some cases, direct hiring often does involve a recruiting partner. As a seasoned executive recruiter, here’s what direct hire means to me and when it makes sense to use it.
What is direct hire?
Direct hire is when a candidate becomes an employee of the company that hires them. It’s the most common hiring method for permanent, full-time roles.
Contract staffing is a popular alternative. This method involves a company partnering with a recruiting or staffing agency that hires the candidate to its own payroll (instead of the company’s). Contract staffing is the most popular hiring method for temporary, fixed-term roles.
When would an outside recruiting partner be involved with direct hire?
It can be challenging for HR and talent acquisition teams to find the right candidates in today’s market—especially when they need niche skillsets. Roadblocks like many vacancies or an influx of applications from unqualified job seekers can also get in the way of a successful search.
A partnership with outside direct-hire recruiters like Journey Search Partners can resolve these situations with urgency. We serve as the headhunter for hard-to-fill roles, but our partner companies still handle the hiring process after we find the right candidates.
Direct hire with a recruiting partnership vs without:
Advantages of direct hire with a recruiting partnership:
- Recruiters find passive candidates with the background you are looking for, and who you may not be able to connect with through other search methods.
- Some recruiting firms, including Journey Search Partners, guarantee the success of candidates for most roles. If they don’t work out within an agreed-upon period, we find an equally qualified candidate at no cost.
- Recruiters can search for candidates confidentially, helping companies avoid potential complications with internal teams.
Possible downsides of direct hire with a recruiting partnership:
- If your recruiting partner conducts a contingent search, you will pay a fee when hiring one of their candidates. If they conduct an engaged or retained search, you will owe a full or partial fee up front. Each search method offers unique advantages.
- While your internal team controls the hiring process, the search process will be controlled by your recruiting partner.
- Some recruiters focus exclusively on job descriptions without finding candidates who fit your company's culture. At Journey Search Partners, our recruiters use our PATH Search Process instead, beginning with developing a strong understanding of your culture to launch a fully custom search.
Advantages of direct hire without a recruiting partnership:
- No fee is needed to hire a candidate, so costs are limited to onboarding and the candidate’s salary.
- You can assemble an internal search team of people who will work directly with the hired candidate.
- You may have employees in other roles on your team who would be strong candidates for your open positions.
Potential downsides of direct hire without a recruiting partnership:
- Your HR or talent acquisition team will need to invest significant time and energy in your search, even if their plate is already full.
- Depending on available resources, you may be limited to selecting applicants who apply for a position, rather than seeking out others who could be a stronger fit.
- If a candidate you hire doesn’t work out, your team may need to invest more time and energy in another search.
Direct hire recruiting can take more than one form.
While definitions vary depending on who you ask, direct hire typically takes one of two forms:
- A company independently connects with a candidate and hires them to its payroll.
- A recruiting partner finds a candidate on behalf of a company. Then, the company hires the candidate to its payroll.
At Journey Search Partners, direct hire is our most popular service across industries and locations. If you’re searching for the right person for an open role at your company, our team can help. Whether you have questions about what we can achieve together or you’re ready to partner on a custom search, reach out to us, and we’ll be in touch within 24 hours.
