Temp-To-Hire or Direct Hire? How to Decide What is Best for Your Company?

SmartTalent SolutionsIs it time for a fresh round of hiring at your company? Do you need to bring in extra help because of increased business? The hiring process can be lengthy for some companies, or quite short for others. But, how should you make the hires? Should you bring in someone new via temp-to-hire or via direct hire? We will discuss both hiring options in this week’s post so you can make the right decision for your company.


Temp-to-hire is defined as an employee working for your company through a staffing firm for a lengthy period, somewhere around 600 to 1,000 hours depending on the staffing firm, prior to becoming a full-time member of your company. Once hired by your company, the employee would no longer work jobs found for them by the staffing firm.

The first benefit of using temp-to-hire is the ability to save time. Should an employee depart from your company abruptly, for whatever reason, you will need to replace them immediately. This can be done using employees recommended by a staffing firm. You will be able to get an employee into the office the next day without having to interview candidates and onboard them.

The second benefit of temp-to-hire is being able to test out a multitude of employees to determine which one is the best fit for your company on a full-time basis. It can be difficult to find the right person, who has a good attitude and fits into your company’s culture using traditional hiring methods. By letting them work at your company for a couple of months, you will be able to watch them interact and perform.

A third benefit is that your company can save money. Temporary employees are only paid for the time they actually worked with the company. There are no costs associated with a temporary employee who is relieved of their duties, either.

Direct Hire

Direct hire is defined as an employee becoming a full-time member of your payroll from the first day they are on the job. They were put through the interview and hiring process either by the company or by a staffing firm working with the company, and then offered a full-time job.

A benefit of using direct hire to fill open jobs at your company is that you will be able to bring in passive candidates. Passive candidates are ones who do not consider working temp-to-hire jobs while employed elsewhere. This means that you will be able to overcome hiring barriers with candidates by making direct hires.

Another benefit of the direct hire process is that you will give new employees the feeling of inclusion. Some employees want to be part of a company’s full-time payroll from day one, and some companies want their employees to have that feeling, which is why they use direct hire. Some employers believe that when their employees feel included and part of a long-term project, then they are happier at the office.

Contact Smart Talent today to discuss your company’s hiring options.


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