Here are common misconceptions we hear about direct hire staffing services  

Millions of businesses rely on direct hire staffing agencies to help them with their permanent employment needs every day and growing. This service has gained popularity over the past few decades for its benefits helping employers with the fast-paced nature of hiring employees. 

Even though direct hire recruiters have become more prominent, many businesses are new to using a third party staffing agency for their hiring needs. Here are some common myths and misconceptions employers have when exploring this new service for their business. 

Direct hire staffing is expensive  

Direct hire recruiting is commonly associated with its cost. While this is a legitimate concern for employers looking to hire a third party staffing agency, there are factors to consider that contribute to the costs and how this service pays itself off in the long run making it a safe investment. 

Staffing costs

Finding highly qualified candidates is a complex problem to solve in a fast-paced, competitive environment, and depends on expertise, technology and manpower to find the right candidate to make a placement. 

Recruiting companies absorb significant costs including applicant tracking systems, recruiting software, partnerships with third party talent sources, marketing (including building/maintaining candidate network and paid advertising), legal and compliance costs, employee overhead for recruiters and other administrative staff, and other common business operating expenses. 

These expenses can contribute to a higher short-term cost to fill roles than internal staffing, but much higher long-term benefits that offset these costs. 

Benefits 

All of these costs are to tailor a team of professionals to find highly-qualified candidates for employers and service other needs, which come with benefits that provide an ROI to employers including:

• Solid pipeline of high-quality candidates.  
• Access pre-screened talent instantly, and find niche candidates faster. 
• Limit internal training and administrative costs for recruiting. 
• Reduces time to hire which can limit productivity gaps and overtime paid to understaffed workforce. 
• Avoiding bad hires that can be costly, which impact productivity and company culture. 
• Strengthening retention and reducing training or turnover costs. 
• Builds a strategic partnership for even more effective future hires.

Costs of bad hires 

This is a major contributing factor to the ROI of third party staffing. As much as a great hire brings long-term productivity and growth, bad hires have an inverse effect. This swing in productivity and costs is typically much more expensive than hiring a staffing agency. 

Here are the average costs of bad hires or ineffective recruitment strategies:

• -$14,900 for bad entry-level hires. 
• -$39,000 for bad mid-level hires. 
• -$240,000 for bad senior-level and executive hires.
• 40-50% increase in hiring cost when the position remains vacant for a prolonged period.
• Internal recruiting, on average, takes 1-2 more weeks per placement than staffing agencies, and longer for hard to fill positions. 

Recruiting is an investment

While there is a cost to recruiting services, it should be seen as an investment for the right person. Staffing is only expensive when a bad hire is made, whether you hire internally or use a third party agency. 

A great way to protect your investment is to hire an agency with a guarantee on their placement, whether it be money back or refilling the position at no extra cost if the employee does not work out. 

Direct hire is also typically contingent, meaning you do not pay for staffing services unless a placement is made. This enables you to get all the benefits of staffing instantly without any upfront costs. 

It is only for temporary roles 

Some assume direct hire recruiting is the same as temporary staffing, and that the terms are interchangeable. While there are many interchangeable terms for both services, they are different. 

Direct hire staffing is the recruitment for a permanent, long-term role for a company. It can also be referred to as permanent recruitment, permanent placement​, full-time staffing, direct sourcing, and commonly associated with executive search. 

Temporary staffing is recruitment for a short-term role with a defined end of contract date in the employment agreement. It is also known as contract staffing, temp recruitment, short term staffing, or interim staffing. Temporary roles can also be temp-to-hire, where the employer can evaluate the candidate during a trial period and make an offer at the end of the contract. 

Only for large companies utilize staffing firms

While large companies do take advantage of direct hire staffing services for executive roles, specialty roles, or hiring in large volumes, many small or mid-sized businesses also work with recruitment agencies. 

Small businesses can benefit from staffing services for their specific needs which can stem from a lack of internal administrative support and resources to strengthen their workforce. Hiring a talent agency helps them not only find high-quality candidates and streamlining their hiring process, but also other staffing services like payroll, onboarding, managing temp workers, and more. 

There is not additional access to talent 

While this can be true for some staffing agencies, many do have a pool of pre-screened candidates they can reach out to see if they are interested in your role. 

When you are looking for a provider you want to ask them about their talent database and their track record filling roles. You will also want to see what industries they specialize in to ensure they have a pool of candidates that match your hiring needs. 

This is one of the biggest benefits of working with a recruitment firm. About 70% of job seekers are passively looking for jobs and not engaging job boards, so having a pool of qualified candidates to reach out to make a big difference in finding the best person for the job. 

Staffing only works for executive or high-level positions 

While staffing agencies that specialize in executive staffing are effective in filling those positions, recruitment services are also highly effective for permanent, temporary, and other forms of staffing services for entry level to mid level positions. 

Staffing services help with finding talent, screening candidates, assisting with interviews, making an offer, post-hire support, and more. This reduces time-to-hire, recruitment costs, and improves retention and company culture. 

Direct hire staffing agencies do not provide post-hire support

This depends on the staffing firm you work with. While some fill a position and services end, others follow up and provide post-hire support. This can be in the form of administrative support like onboarding or payroll management, or making sure the placement is working out. 

Some staffing agencies offer guarantees for scenarios where the employee was not the right fit or they quit and will check in and make sure the new hire is doing great. 

Work with Hunter Recruiting

Hunter Recruiting has been providing direct hire staffing services for 20 years and has filled over 15,000 positions. We have achieved this with our talent pool of 1.2 million skilled candidates, latest recruitment technologies, short time to fill, and staffing teams that work directly with candidates and employers in STEM, healthcare, manufacturing, and other industries! 

If you want to learn more about how we can help you with recruiting and other staffing solutions, you can request talent or schedule a free consultation! 

Everything you need to know about executive search 

Executive search is a recruiting service that is tailored to acquiring top-level candidates for critical or high-level roles including C-suite executives, vice presidents, directors, senior managers, board members, and other functional leaders. 

Recruiting executives is typically confidential, so it is strategically different from conventional recruiting you see with other jobs that get posted to job boards and advertised on third-party platforms. With an executive staffing agency, the recruitment firm proactively seeks highly qualified professionals who are submitted for your consideration. 

This process is more strategic, discreet, and hands-on than typical candidate searches. It usually depends on deep industry knowledge, a tailored approach for each specific role, and access to talent.

The majority of executives are passively looking for jobs or open to the right challenge, and not actively engaging new opportunities. Having access to these relationships is crucial to finding the right person for your role.  

How executive search works 

These services are typically retained staffing arrangements, meaning you pay a percentage of the agreed-upon fee upfront and pay in steps until a placement is made. There can be other fees depending on the service agreement as well, like maintenance fees for longer searches. 

Here are the steps you can expect in your executive search with an agency.

Consultation 

Initially, you will meet with an executive recruitment agency to go over the role, your company culture, and any other important information to help with the hiring process. This is a crucial step to help you find a professional who aligns with your company’s long-term vision, culture, and leadership requirements. 

Find candidates

After a service agreement has been reached, outreach to candidates starts and the staffing agency will contact professionals to see if they are interested, screen them to see if they are a good fit, then submit them for you to review. Then you will start interviewing your candidates. 

Make placement 

Your recruiter also helps with interview preparation, negotiations, offer letters, hiring, onboarding, and other administrative duties to assist you throughout the process. 

Who uses executive staffing services? 

Executive headhunting is popular with a wide range of businesses and industries. Here are some common scenarios.

• Corporations looking for C-Suite executives
• Startups needing strategic guidance 
• Private equity firms seeking leadership for portfolio companies 
• Nonprofits needing mission-driven leaders 

Benefits of executive search 

Here are some benefits you can expect from working with an executive staffing agency. 

Access to talent and shorter time to hire

Lacking access to highly qualified talent is usually the biggest pain point for businesses looking to fill a role, contributing to their search taking longer or positions never being filled. 

This can also cause businesses to settle on a candidate because there is not enough talent in their pipeline to interview, so they make an offer to a candidate before they move on. 

Using an executive search service gives you more access to candidates to interview in a tighter time frame, enabling you to compare candidates and make a quicker decision you feel great about that aligns with all of your requirements. 

Industry Leaders

Staffing agencies tend to work within industries where they cultivate a network of relationships with employers and candidates, which enables them to be more effective at making placements. 

Working with a recruiting agency that knows what you are looking for and has access to these relationships makes them more independent after your initial consultation and submit higher quality candidates to be interviewed. 

Confidentiality

With high-profile hires, confidentiality is often a key concern, especially when the search involves internal changes or is highly competitive. An executive search firm is experienced in managing confidential searches, ensuring that the process remains discreet to avoid unsettling employees or stakeholders by making the opening publicly known.

Thorough Vetting Process and Long Term Fit 

An executive search firm will have a thorough vetting process to ensure only the best candidates are submitted for the role. The level of detail is much higher than a typical candidate search, including in-depth assessments, reference checks, and interviews to qualify them as a great fit for your company’s needs and culture. 

As much as this rigorous approach ensures a great hire and long-term fit, it also prevents a bad one. Bad hires can be damaging to your growth and success, so finding the right person is crucial. 

Executive Search vs Contingency Staffing 

Contingency staffing is another type of staffing arrangement that has some key differences from retained executive search. 

In a contingent staffing agreement, the client does not pay unless a candidate is filled into the role. The search is public without confidentiality or discretion, supplementing outreach with job postings on the company job board and other third-party websites. 

The candidate pool varies from entry to senior level, usually excluding executive and some senior-level positions. Time to hire is typically shorter, and contingent direct-hire staffing is more scalable than executive staffing.

Hunter Can Help Your Executive Search

Ready to find your next executive leader? 

Hunter Recruiting has 20 years of experience filling a variety of executive roles in STEM, manufacturing, healthcare, and other industries. If you would like to learn more about how we can help you find the right professional for your role, you can schedule a free consultation or fill out a form to request talent! 

Direct hire staffing is a service often provided by third-party staffing agencies for employers to help them source and hire permanent employees. 

These are typically contingent recruitment services, meaning you do not pay unless a candidate is hired for your open role. Some agencies also provide retained recruitment services for direct hires, typically for executive search and high-profile positions, which comes with an upfront fee to start the service agreement. 

The goal of direct hire staffing is to provide companies with long-term employment of highly skilled and qualified candidates who fit their workplace culture. These positions tend to be full-time, and typically offer compensation packages that include salary or hourly pay and other benefits like PTO, healthcare, and retirement. 

The trend of companies using direct hire staffing agencies has risen over the last few decades because they give employers access to talent and other solutions to help them with the recruitment process, and save them time and money in the long run. 

Direct Hire Staffing vs Permanent Staffing

Direct hire staffing and permanent staffing are interchangeable terms that describe the same recruitment service. 

Direct Hire Staffing vs Temporary Staffing 

While direct hire staffing is for permanent placements, temporary staffing is for positions that have contractual terms for the length of work with a planned end to employment. 

Temporary staffing, also called contract staffing, has other key differences. They are typically hired for short-term positions rather than long-term, and hired to fill employment gaps from employee leave, seasonal demands, and project work. 

Direct Hire Staffing Process 

When you work with a recruiting firm utilizing their direct hire staffing services, they typically approach recruitment in these steps. 

Initial Consultation and Needs Assessment

You meet with the recruiting agency to assess the needs of the open position, including education, skills, qualifications, and experience. They will get to know your company to ensure a good cultural fit as well. 

Once a service agreement has been signed, they will proceed with the next steps.  

Finalize Job Details 

Your recruiter will create your job description based on the criteria you need for the role and get it approved to be advertised. Job descriptions typically include an overview of the job, qualifications, requirements, and compensation. A great job description is very important to attracting the right talent. 

Screen Candidates

Once the job has been published, the recruitment agency will start to source and screen candidates for your role. This can include outreach to qualified candidates already in their talent pool, and sourced from other organic and paid channels like LinkedIn, Indeed, or other sources. 

As qualified candidates are picked for interviews, they will be submitted to you for approval, and interviews will be scheduled. 

Make placement

The recruitment agency will help you throughout the interview process. This can include scheduling interviews, negotiating terms of employment, extending the offer to the candidate, and more.  

After a placement has been made, recruitment agencies typically follow up to see how the new hire is performing, get feedback, and provide any additional support if needed. 

Should I Hire a Direct Hire Staffing Agency? 

This depends on your current hiring needs and if you are equipped to source and hire talent. 

Direct hire staffing is a great option for employers who want instant access to qualified talent, to work with recruiters with years of experience connecting businesses with that talent, and if they are having trouble filling a tough job. 

There are other benefits of hiring a staffing agency to do recruitment as well, including:

• A large network of active candidates, and passive candidates (roughly 70% of job seekers are passive), whom recruiters reach out to, who employers wouldn’t have access to otherwise.
• According to Jobvite, 72% of companies report higher quality candidates from staffing agencies. 
• Staffing agencies reduced time to hire by over 70%. 
• Employers and hiring managers can be more hands-off with hiring, focusing on their core duties.
• Reduce costly bad hires. 80% of employers say staffing agencies lower bad hire risks. 
• Reduce time to hire. Harvard Business Review reports staffing agencies cut time to hire by up to 40%. 
• Reduced administrative strain from the hiring process. Agencies can help with onboarding, payroll, and other administrative duties. 60% of HR professionals say staffing agencies reduce their administrative workload. 
• Reduced turnover and higher employee retention rates. 
• Long term cost savings, 55% of employers say third-party staffing reduced hiring costs.  
• Staffing agencies can operate on your behalf and make the job search confidential, popular with executive search. 
• Certain staffing agencies can specialize in specific industries, which helps them achieve all of the above more effectively. 

Work with Hunter Recruiting

Hunter Recruiting has been providing direct hire staffing services for 20 years and has filled over 15,000 positions. We have achieved this with our talent pool of 1.2 million skilled candidates, latest recruitment technologies, short time to fill, and staffing teams that work directly with candidates and employers in STEM, healthcare, manufacturing, and other industries! 

If you want to learn more about how we can help you with recruiting and other staffing solutions, you can request talent or schedule a free consultation!