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You're ready to fill a position, now you need to decide if you will go the direct hire or temp-to-perm route - which is the best route for you?

Being a staffing agency, we often receive the question from our clients, "Is it better to hire an employee as a permanent (direct hire) or temp-to-perm employee?" As with so many things in business, the answer is, "It depends." I sat down with Jessica Kegler, our sales manager, to get her thoughts on this. Let's see and listen to what she has to say about this topic.

Benefits of Direct Hire

There are at least three reasons why an employer would decide to use our Direct Hire service, over the other options. Watch and listen to Jennifer Kegler explain the benefits of direct hire or continue reading below.

Reason #1: "Hiring Permanent typically means a higher caliber selection of candidates for the role."

With unemployment being so low, 2.8% in Massachusetts (3.5% nationally), usually the most qualified candidates are already working. "The true talent lies in the working class and the people who have jobs now." In order to entice the high-quality talent to make a job change, they need to know there is job-security with the move. It would be risky for them to take a temp-to-perm position that only offered a limited time quarantee at a job - such as 3-month or 6-month. But with a permanent position, they can make the move with the peace of mind that this move is long-term and be more apt to make the change.

In addition, due to a higher sense of loyalty permanent employees' production levels may be higher as a result of a greater sense of security.

Reason #2: "Hiring Permanent significantly increases employee loyalty"

Temp-to-hire is a great option when you want to have a trial-period prior to deciding if the employee is the best fit for your company. It also allows the employee to decide if the position is for them. However, there are times when a direct hire - permanent position - from the start is best. This is especially the case for higher level or niche positions, where it's important to have the employee's loyalty and sense of commitment be strong from the start. A direct hire increases the long-term retention, while decreasing the potential cost of having to rehire for a position in the near-future.

Reason #3: "Creates a more universal team feel"

"When people take a job as a permanent employee it provides them a stronger sense of team and commitment to the company. It brings everyone together, as opposed having a team and a temporary employee." And as we know, a sense of team increases productivity levels.

Biggest Myth Clients Believe About Direct Hire

After Jessica shared the above reasons I asked her what the biggest myth is that needs to be debunked about direct hire services. Here is what she shared.

"The biggest myth is that hiring perm is too expensive or more expensive than hiring temp-to-perm. Clients are pleasantly surprised that this often is not the case. It is just as cost-effective, if not more, to hire someone perm. It's a great option, with cost savings, benefits, and service guarantees that come along with this.' The Alpha Group offers a 30-day - 100% guarantee for all direct hire positions.

Final Words of Advice from Jessica Regarding Permanent Placement

"Hiring perm solidifies the right candidate for the right job, not just a candidate for a job. It is a process and a tough one, but one we [The Alpha Group] work hand-in-hand with the client on - from beginning to end - isolating top candidates for top positions. With the economy and the job market the way it is, this is the time to consider direct hire. In fact, direct hire is our biggest need right now. "

Peace of Mind When Hiring

Hiring permanent employees saves companies money and delivers the best person for the job. In addition, our perm placements come with a service guarantee the gives our clients pease of mind about their hiring decision.

When it comes time for you to hire, which employment option works best for you depends on your specific situation. Contact us to further discuss your needs and what option is best for you!

We look forward to hearing from you! (Stay tuned for Part 2 of this series, where the benefits of hiring temp-to-perm are discussed.)

The Alpha Group

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Written by Lori Narewski

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