Temp, Temp to Perm, and Direct Hire Explained
staffing solution for Recruiting DivisionYour office has a position open, and you don’t have the time to search for candidates yourself. So you decide to work with a staffing agency, but you’re wondering which staffing solutions are available and which are the best for you. Here are three common types of hiring that are available to you, and the benefits of each.
When your office is overloaded with work, a temp worker can take some of the pressure off of your fulltime staff. Temporary workers are those brought in to help ease the workload in your office for a while. They are paid by the staffing agency rather than your company’s HR department. Times when a temp worker might be needed include when an employee has left for maternity leave or when your office needs a worker with a certain skill set for a limited amount of time.
Temporary workers can be assets to your business because they bring in a different viewpoint; they may have a different way of doing things that will improve the workflow in the office. Plus, it will save your staff time that they would have spent picking up additional work tasks. That means you get to save money that may be spent on paying for overtime hours.
This staffing solution is good for when you know you have a position you want to fill, but you don’t want to make the wrong decisions when hiring. Temp-to-perm (also known as temp-to-hire) employees are given a trial run lasting anywhere from three to six months. During this time, you pay the agency a fee for each month of employment, and the agency pays the worker a portion of that fee. As they work, you and the employee can get a feel for your personalities and work styles. If the fit’s a good one, you’ve found your newest employee. If not, however, neither you nor the workers are locked into a bad situation, and you can part ways without any hard feelings.
The temp-to-perm position is useful because it’s an excellent chance for you to observe the worker before you make any definite hiring decisions. This way, you won’t be rushed to directly hire a person and end up with someone who doesn’t fit with the office culture. Another benefit of this type of employment? You can make employment decisions only based on how the employee does in the office, since the temp-to-hire has no established history at the company. At a larger business, firing permanent staff can be difficult, since for-cause termination requires much documentation, and you could find yourself at the end of a (groundless) lawsuit by the injured party. With temp-to-hire, you don’t have to deal with such issues.
Direct hire involves applicants found by the agency, but the agency has no role in paying the individual once they’re hired. This type of employment is for positions that you need filled permanently without any initial trial periods. You tell the agency what you’re looking for, and the agency will seek out a list of strong candidates for you to select from.
Direct hires can be beneficial in that they mean you always have a person with the skills you need in the office at all times. The same cannot be said about temp workers. Another benefit of direct hire over temporary hire is that the former will produce a higher quality of work, since the nature of their employment means a temp worker may not feel the same need to impress.
The benefits of direct hire vs. temp-to-perm hire? Direct hire can cost less money, because you only have to pay the staffing agency the commission fee, as opposed to paying the company a monthly fee for the time that the employee is a temp. If you’re short on time and money, direct hire may be the best way to go.
Image credit: freedigitalphotos.net/Ambro
Andrew Greenberg’s roots in recruiting date back to 1996. He has experience both on the agency-side and corporate-side of the staffing business, with a focus in the financial services space at companies like Bloomberg and UBS. He also has core experience with information technology staffing, and has worked for major software companies such as SAP Business Objects and IBM/Informix Software. To get in touch with Andrew, you can reach him by email or by phone at (800) 797-6160.