The Ultimate Guide for the Direct Hiring Process

In a direct hire, a staffing firm recruits a permanent employee who joins your payroll from day one. The process usually runs in five steps: you define the role and salary, the firm advertises the opening and reaches its network, including people not actively looking, it screens and interviews applicants, you interview a shortlist and make an offer, and the new hire onboards directly with your company. Direct hire fees are typically a one-time percentage of first-year salary. IS&T recruits IT and engineering professionals for Houston businesses on direct hire terms.

Hiring for a permanent IT or engineering role? Ask IS&T.

For businesses looking to land a qualified candidate in a job market that is exceedingly competitive, working with an experienced staffing firm to guide your direct hire process can result in placing top talent in important positions easier than you might have thought possible. Direct hire staffing has benefits for both employers and employees, allowing businesses to fill open positions more quickly and getting employees settled with pay, benefits, and job security early on.

If your business is looking to work with a staffing agency to recruit employees directly, knowing the ins and outs of the direct hire process can make the experience easier. Let’s go over direct hiring, what that entails, and what the steps of the direct hiring process are.

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What is Direct Hire?

Direct hire is the staffing model for roles you expect to keep filled for years.

“Direct Hire”, also known as “direct placement”, refers to a form of staffing in which professional staffing firms recruit employees for businesses, handling all the aspects that would normally be handled in-house when hiring directly. For example, the professionals at the staffing firm would handle sourcing qualified individuals, reviewing their resumes and portfolio, vetting candidates, and screening or interviewing. Typically, the business’s in-house HR department handles final interviews and makes the decision on who to hire. Once hired, the candidate is then on-boarded with the business and put directly onto the business’s payroll.

Direct hire compared with other staffing models

	Direct hire	Contract to hire	Contract
Who employs the worker	Your company from day one	Staffing firm first, then your company	Staffing firm
Length	Permanent	Trial period, then permanent	Fixed term
How you pay	One-time placement fee	Hourly rate, then a possible conversion fee	Hourly rate
Best for	Long-term roles	Testing fit first	Projects and peak workloads

What Happens During the Direct Hire Process?

Before deciding to pursue direct hiring through a staffing firm, you should have a solid understanding of the direct hire process. Although the process may differ a bit from one staffing firm to another, generally the direct hire process is as follows.

Post About & Communicate Openings

Once you’ve partnered with a staffing firm to fill a particular position, their team will begin to let those in your industry know about the opening. This can include posting the position online and communicating with their network of business relationships. Direct hire opportunities are often appealing to passive candidates, or those workers who are not actively looking for a new job. For this reason, having the support of the wide network of a staffing agency can be very helpful in attracting more highly qualified candidates.

Vet, Screen & Interview Candidates

The best direct hire candidates are often not looking for a job, which is why a recruiter’s network matters.

One of the most helpful parts about working with a staffing agency for direct hire is that the agency will typically handle the monotonous work related to finding a top-talent hire. Once they begin the recruiting process, the staffing firm will begin reviewing applications or submissions on your behalf, weeding out those who are not qualified or do not meet your business’s specific needs. The staffing firm will screen through applicants, browse portfolios, read resumes, and vet potential interviewees. They may even do preliminary interviews to confirm the fitness of candidates for the job. Ultimately, your business will make the decision as to whether to interview or hire certain candidates, but it can be very helpful to have the staffing agency pave the way for an easier decision.

On-Boarding the Candidate

Once you’ve decided on a candidate to hire, the staffing firm can help your business make an offer. Once the candidate accepts the offer, your business can on-board the employee directly to your payroll and enjoy the new talent they’ll bring to the position. With direct hiring, employees are usually permanent, unlike other forms of staffing like contract, contract-to-hire, and seasonal.

Direct Hire Staffing Solutions for Houston Businesses

Finding a staffing agency to handle your direct hire staffing needs is not enough – you need to find the right staffing agency to partner with to ensure a smooth and effective direct hire experience. By finding a staffing agency that is experienced in their field, for example, web development, and in your industry, you can get the employee you need without the hassle of handling the recruitment process on your own.

It’s imperative that if you are looking to hire the right talent you find the right partners that know Houston-area businesses and beyond when it comes to finding the right talent.

Learn more about IS&T’s IT staffing, contingency search and retained search, or read our guides to IT staffing and contract to hire.

Tell IS&T about the permanent role you need to fill, and we will explain how a direct hire search would work for it.

Frequently Asked Questions

What is the difference between direct hire and contract to hire?

In a direct hire, the person joins your payroll as a permanent employee from day one. In contract to hire, they first work as a contractor, usually on the staffing firm’s payroll, and become your employee only if you convert them at the end of the contract.

How much does direct hire recruiting cost?

Direct hire fees are usually a one-time percentage of the new hire’s first-year salary, paid when the candidate starts. The exact percentage and payment terms are set in the staffing agreement.

Is there a guarantee if a direct hire leaves early?

Many staffing firms offer a guarantee period: if the new hire leaves or is let go within a set time, the firm searches for a replacement or refunds part of the fee. Check the length and conditions of the guarantee before signing.