What is a Direct Hire?

Find out what it means to make a direct hire for your company.

By Paul Peters, May 29, 2024

Paul Peters is the Chief Editor of Betterteam. He's a former print journalist and small business owner and has written articles for a variety of newspapers, magazines and websites.

An employer meeting with her direct hire.

A company may use different hiring processes depending on the type of employment offered. When recruiting for a permanent role, for example, employers may seek to hire directly, meaning that the successful applicant will join the company as a full-time employee rather than a temporary or contract-to-hire worker sourced using a third-party service.

What is a Direct Hiring?

A direct hire is a recruitment made directly by a company, or through an employment agency, to fill a long-term need. Direct hires are recruited by staffing agencies and PEOs but become employees of the company. The position is permanent and inclusive of all company benefits.

Pros and Cons:

Pros

Permanent positions are more attractive to top talent.
Direct hire candidates are often more committed and loyal.
Saves the annuity costs of temporary or contract workers.
Direct hire staffing helps you fill difficult, niche positions.

Cons

The hiring process can be more time-consuming.
Employers assume all new hire expenses.
There is no trial period.
Making staffing changes is more difficult than with outsourced temporary or contract staff.

The Direct Hire Process:

A company may choose to recruit candidates directly or make use of a staffing agency for direct hiring. The first stage of the process is about sourcing candidates, which is where an agency may offer the advantage of a larger network to access a wider talent pool.

Then, applications are reviewed and screened to filter out the best matches for the role. Staffing agencies do this on their client's behalf — some even conduct preliminary interviews — which can save employers much time, as there may be an overwhelming number of applications.

The remaining applications are presented to the employer or department hiring to conduct final interviews and select a candidate. Once the final decision has been made, the business will make the candidate a job offer and, once accepted, begin onboarding their new employee.

The Benefits of Direct Hire Staffing:

The candidate is employed full-time, saving you the annuity costs of temporary or contract workers.
Permanent positions are more attractive to top talent.
Direct hire candidates are more committed and loyal.
Direct hire staffing saves your business time and resources.
Direct hire staffing helps you fill difficult, niche positions.

Common Direct Hire Jobs:

Executive and management roles.
Jobs in science, technology, and engineering.
Roles that demand advanced degrees, such as master's and doctorate degrees, or postdoctoral studies.
Permanent roles.

The Best Direct Hire Staffing Services:

How to Hire a Foreign Employee

Steps to hiring a foreign employee, top job boards, and frequently asked questions.

FAQs:

What is a federal direct hire?

A federal direct hire is a hire made through a Direct Hire Authority (DHA); a hiring authority used to fill vacancies in specific federal departments, occupations, grade levels, and locations.

What is direct hire staffing?

Direct hire staffing services are used by employers seeking candidates to fill permanent positions in their company. Direct hire staffing services are also called recruitment agencies, employment agencies, or staffing companies. There are many direct hire employment agencies.

What is a direct hire public notice?

Direct hire public notices are mandatory notices made to the public whenever a permanent federal or public sector position is vacant. A direct hire public notice is made by a staffing agency, such as USAJOBS, who look for potential employees.

What does direct hiring authority mean?

The Direct Hiring Authority (DHA) is a temporary authority designated to hire individuals in an expedited manner. The DHA can waive their rating and ranking system and has additional hiring powers.

What is a direct hiring event?

A direct hiring event is an event held by employers, schools, or recruiters that offer on-the-spot interviews to interested candidates. Hiring events are commonly held at convention centers, hotels, or businesses.

What is the Rule of Three in federal hiring?

The Rule of Three states that if 100 people apply for a job, the hiring manager is limited to looking at the top three. If someone with veteran preference occupied the first two spots, and a non-veteran was at number three, then they could not be considered for the job.

What does direct hire mean on the Amazon job site?

An Amazon direct hire refers to any available position that is full-time, and not temporary or contract work.

What does direct hire mean in USA JOBS job posts?

On the USA JOBS website, a USAJOBS direct hire refers to any available position that is full-time, and not temporary or contract work.

What is a staffing agency direct hire agreement?

A staffing agency direct hire agreement is an agreement signed between a company and a staffing agency for direct hire employment. The contract defines the terms of your business relationship and a provision to protect the confidentiality of staffing client information.