Direct Hire
Direct hire, when the employees are hired directly by the organisation for permanent position without the involvement of any third-party recruiter or agency. In a direct hire, the company stages the whole hiring process, from sourcing the candidates and conducting the interview to extending the offer letter.
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Benefits of Direct Hire
Direct hire is proved to be quite advantageous for the companies as it allows them to choose from the best candidates out there which improves the quality of the employees. The company can also establish a direct communication with the candidate and form an informed judgement.
Direct hire also saves the company a lot of money as the company is not obliged to pay to any third party. With the exclusion of the third party, the company also has the complete control over their hiring process and hence the positions are filled faster. Direct hire can also be seen as a long term staff investment.
Challenges of Direct Hire
With the process of direct hire, companies may also face some challenges. Direct hire, is a time-consuming process as sourcing eligible candidates can take up a lot of time. It is a challenging process also because the it is subjective in nature to determine the value of the candidate.
Though direct hire saves the third-party fees, conducting the entire hiring process can be heavy on the pockets and is lengthy process.
Direct Hire vs. Temp-To-Hire vs. Contract Worker
Direct hire means hiring an employee for a long term or permanent basis.
Temp-to-hire is when an employment is temporary and may be switched to a permanent position.
A contract worker is the type of employment which is of a predetermined period or till the completion of a particular task.
| Direct Hire | Temp-to-Hire | Contract Worker |
| | | |
| Hiring an employee for a long term or permanent basis. | Temporary employment may turn into a permanent position. | Employment of a predetermined period or for a particular assignment. |
| Permanent employees receive complete company benefits. | Helps the company judge the employee’s potential for permanent hiring. | Temporary hire who is not entitled to company benefits. |
Direct Hire Process
1. Job description and analysis
Analyse the positioning you are hiring for. As a recruiter you must identify the responsibilities of the job along with skills, qualifications, and the experience required for the job.
2. Sourcing candidates
The next step in the hiring process is sourcing the candidates. Sourcing candidates from the pool of online job portals, social media, referrals, etc.
3. Reviewing applications
Reviewing and short-listing applications is a crucial step in direct hire. You have to ensure that moving forward, are the candidates qualified and if they are a good fit for the company.
4. Conducting interview
These shortlisted candidates are then interviewed by the HR department. The interviews are conducted in various formats, like virtual interview, in-person interview, on-call interview, etc. the main aim for conducting the interview is to assess the candidate. As a recruiter, your main aim is to judge if the candidate is fit for the positions and if aligns the job description.
5. Extending offer
When you find the worthy candidate, extend the offer letter and negotiate.
6. Onboarding
The final step, is onboarding. After the candidate has accepted the offer, the process of onboarding starts.
Key Takeaways
When the employees are hired directly by the organisation for permanent position without the involvement of any third-party recruiter or agency. In a direct hire, the company stages the whole hiring process, from sourcing the candidates and conducting the interview to extending the offer letter.
Direct hire is proved to be quite advantageous for the companies as it allows them to choose from the best pool of the candidates, saves the company third party cost, establishes direct communication.
Aside from these benefits, direct hire faces a few challenges like it’s a time consuming process because of its subjective nature, costly and lengthy procedure.
FAQs
1. Why do firms hire directly?
Firms hire directly because it is proved to be quite advantageous for the companies as it allows them to choose from the best candidates out there which improves the quality of the employees.
2. How is direct hire different from temporary staffing?
Direct hire means hiring an employee for a long term or permanent basis, whereas, temp-to-hire is when an employment is temporary and may be switched to a permanent position.