What is Direct Hire and how does it work?

Direct hire is one of several options for filling job openings. When you work with a recruitment agency, this is known as direct placement hiring. It’s usually the best choice for permanent positions, not temporary help. What is it, and what are the benefits?

What is direct hiring?

Direct hire jobs are typically long-term, salaried positions with benefits. A direct hire is a position that reports directly to the employer, not to an agency. After accepting a job offer, a candidate becomes an employee of the hiring company and goes on their payroll and benefits immediately.

Candidates for direct hiring may be recruited by an agency or directly by a company. When you use an agency to fill a position, it’s known as direct placement hiring. The agency handles recruitment, but when a job offer is made the candidate becomes a permanent employee of the employer.


Pros and cons

Is direct hiring right for you?

Yes, if your goal is to add permanent staff and attract qualified employees who want to feel like part of your team. There are costs whether you do a direct hire or use contract hiring, so your decision will be a matter of weighing the value each would bring against the expense. Here are some considerations.


Benefits of direct hire

  • ✔ Attract a broader pool of qualified candidates, many of whom are more likely to choose a permanent position over a contract job.

  • ✔ The long-term nature of the position leads to higher commitment and employee retention.

  • ✔ Direct placement hiring using the services of a recruitment firm means you don’t have to use your own resources to source and screen candidates - unless you want to read 200 resumes to find 10 good ones!

  • ✔ A recruitment firm that serves your industry not only has access to a large pool of qualified candidates, it has the expertise to screen them to find the best prospects for your company’s needs far more quickly than you could do it in-house.

  • ✔ The new hire is on your payroll immediately, so you save the costs of contract hiring.

Disadvantages of direct hire

  • ■ Cost. A one-time fee that is a percentage of the employee’s first-year salary is typical, plus ongoing costs associated with putting the position on your payroll. 

  • ■ Relocation expenses. For a permanent position you may find your perfect hire in a location far from yours, which means getting your employee and his/her family moved and settled.

  • ■ Longer hiring process than for contract work. 

The direct hire process

  1. 1. Source candidates from networks. Agencies have extensive networks beyond the typical HR department in a single company, so you’ll have a much broader pool from which to choose, which makes it more likely that you’ll find the perfect candidate.

  2. 2. Review applications and screen candidates. Ensure that not only are all applicants qualified, but they’re a good fit for the company culture.

  3. 3. Submit applicants for final interview. Your agency will give you insights they have gathered so you have all the background you need to make a good decision.

  4. 4. Make an offer and fill the position. Congratulations! You have a new employee.


Our hiring solutions

Brunel matches industry-leading clients with top talent. We specialize in engineering jobs in Life Sciences, Renewable Energy, Oil & Gas, Infrastructure, Automotive, and Mining. We engage our global network in over 40 countries to find you the best professionals for your project, and if relocation is necessary, our dedicated team of mobility specialists covers every detail.


Why it’s worth it to use a recruitment firm that specializes in your industry

A recruitment firm has systems and networks in place to find the right professional for your needs more quickly than you would be able to manage in-house, often with better results.

Recruitment agencies are able to reach out to people who may be perfect for the job but aren’t actively searching. These “passive candidates” expand the possibilities.

Agencies know their sectors and provide valuable insight, advice, and recommendations. We speak with clients and talented candidates every day, so we are very familiar with skill-set availability, career expectations, salary rates, and job market trends.


How to work with Brunel for your staffing solutions

Find out about our permanent/direct recruitment options here.

We offer a wide range of solutions tailored to your staffing needs, from direct hires to temporary help for your IT desk to staffing complete departments. We also offer support and resources for technical training, offshore recruitment for energy projects, and career industry training.



Talk to us about your Direct Hiring needs today Learn more about Direct Hire