In September of 2021, a record of 4.4 million employees quit their jobs – and this number shows no signs of slowing down.
Companies everywhere are scrambling to fill positions with new team members and keep their existing employees happy, a long and difficult process.
With direct placement hiring services, companies can not only find their dream employees, but they’ll also be able to find ones that be around for the long term.
Keep reading to learn more about direct placement and how it works.
What Is Direct Hire?
A direct hire is a position filled directly by an employer with an employer who reports directly to the employer. After accepting a job offer, the candidate becomes a member of the company rather than working on behalf of an agency.
Many candidates prefer the process of direct hiring because it means that they will receive employee benefits and be put on the payroll of the employee. Direct hire jobs typically are long-term, salaried positions that fill a company’s long-term needs.
What Is Direct Placement?
Direct placement uses the principles of direct hire with the help of a third party. A company hires an agency to carry out the recruitment process and administrative details of an open role.
Responsibilities include posting the job on job boards and other relevant platforms, reviewing resumes, conducting preliminary screening of candidates, and presenting choices to the company.
After a company identifies and hires the top candidate, they are then hired by the employer. They become a permanent employee of the company, not the agency.
Benefits Of Direct Hire Services
If your goal is to hire a permanent member of your team who will add long-term value, direct hiring is an optimal choice. Here are a few reasons why using direct hire services will yield even better results.
Better Candidates
Short-term contracts and long-term positions have their appeal to different parts of the workforce. Generally, younger and less experienced candidates will favor contract-based employment that will allow them to learn more about a position without committing. Individuals with more experience will usually seek out long-term positions that offer opportunities for advancement.
Therefore, direct hire will attract both a broader and more experienced pool of candidates that will add more value to your team than someone who is still newer to the field.
Higher Employee Retention & Engagement
Along those same lines, the long-term nature of a position filled by direct hiring methods will encourage employees to become more engaged with their work. This higher commitment will lead to higher employee retention and higher returns. Meanwhile, workers employed by contracts may be less likely to contribute since they know their end date.
Cost-Effective
According to SHRM.org, companies spend an average of $4129 per hire to onboard a new employee. If this employee stays with the organization for 10 years and adds value to the team, this initial investment is worth it. Direct hires usually don’t work based on a contract that expires, meaning that they’ll likely stay with a company longer and earn back the cost of that initial investment.
Hiring workers using short-term contracts, however, will cost your business thousands of dollars each year that could be avoided. Direct hiring also eliminates the need to pay for contract hire, since your new employee will immediately be put onto payroll.
Time-Saving
Hiring a new team member can be a daunting and time-consuming process, especially if you don’t have the means to find someone new quickly. Companies without extensive networks may spend months looking for the right fit, wasting time and resources in the process.
Agencies will provide the best candidates possible in a time frame that’s as short as a few weeks. With their years of expertise, agency members will source, screen, and narrow down prospects in a streamlined process that takes the burden off your shoulders.
Using Direct Hire Placement Services To Find Candidates
When you use direct hire services, they’ll take over many of the responsibilities of the hiring process while keeping you involved. Here’s what you can expect.
1. Source Candidates
Your hiring agency will be largely responsible for sourcing candidates. After you meet with your agency and explain the type of candidate you’re looking for, they’ll use their network to reach out to candidates.
Agencies have more connections with numerous industries, so you’ll have no trouble filling even the most nuanced of positions.
2. Screen Applications
At this stage, you will review the people who have applied and screen candidates. This is the time to ensure that all applicants meet basic qualifications and seem like they would fit the company culture.
A direct hiring placement team will conduct their own screening of candidates to make the process easier for you. They can eliminate anyone who doesn’t have your desired education or work experience levels, and they can also use their judgment to help you handpick candidates.
3. Submit Final Choices For Interviews
Once you’ve narrowed down your initial pool of applicants, you will start to interview candidates. It’s typical to conduct a few rounds of interviews before making a decision.
Your agency will give you insights during this process to help you conduct interviews that will glean the most information from candidates and make the decision easier. Their input can help you decide between two candidates who both may seem to be great fits.
4. Fill The Position
After conducting interviews, you’ll review what you thought about each candidate and make a final offer to your top choice. When a candidate accepts an offer, they immediately become a member of your company and the agency’s services are no longer needed.
Transform Your Team With Direct Placement
Whether you’re designing your dream team or rebuilding an existing one, using direct placement services will provide the most choices and the best results.
Get in touch with the Nexus team to learn more about our services. We’re looking forward to connecting!