How Direct Hire Staffing Can Save You Money – and Land Better Candidates

| HR and Management Tips

The cost of hiring an employee in 2019 doesn’t come cheap. If an employer manages their recruiting efforts internally, there’s a lot to do – from a time and dollar perspective – before a candidate becomes a new hire:

  • Have an internal HR team to manage the hiring process
  • Create/maintain detailed job descriptions
  • Promote open positions – career sites, job boards, advertising, career fairs
  • Screen resumes
  • Manage skills assessments
  • Conduct background checks
  • Check references
  • Present the job offer
  • Negotiate the offer
  • Seal the deal

Whew! After all that’s taken care of, an employer can finally welcome their new hire with open arms and start the onboarding process.

Big Bucks

Depending which data you look at, the cost of hiring one new employee can run several thousand dollars – anywhere from $4,000 up to $7,000 per new hire. And when replacing a current employee (vs. filling a new position), SHRM estimates the hiring costs for a direct replacement are way higher – like up to 50-60% of the employee’s yearly salary.

With numbers that steep, you can see why it’s important to hire the right person for the job on the first try – especially when hiring for permanent, higher-level positions. Employers will pay dearly if they onboard people who don’t stay with the company for a good amount of time.

So what can an employer do to help alleviate the pressure of hiring the best talent for their organization? One solution is to hire a staffing firm to manage direct hire placements.

What is a Direct Hire?        

For a company that has no experience working with a staffing firm, a direct hire is a candidate who is recruited by the firm then employed directly by the hiring organization (employer) and put on their payroll. Employers will often reach out to a staffing firm for their direct hire services because of the big benefits this type of service offers.

The Advantages of Direct Hire Staffing

Direct hire staffing is a customized recruiting process that will deliver only the best-matched talent to an employer. This is usually accomplished through one-to-one meetings between the staffing firm and employer, followed by custom candidate searches and rigorous screening to select only the most qualified candidates.

Throughout the direct hire process, the employer enjoys the benefits of a bigger candidate pool, faster hire placement, cost savings and decreased risk.

Bigger Candidate Pool

Direct hire recruiters have a big network of qualified candidates they can immediately tap into when filling positions. Many in their network are passive candidates who are currently employed but open to entertaining offers from other companies. This gives recruiters a better candidate base to work with compared to a company’s internal HR department.

Faster Placement

When working with a staffing agency, hiring can happen faster. Recruiters can dive into their qualified talent pool and start selecting candidates right away – there’s no downtime for advertising the position and waiting for resumes to trickle in.  

Cost

Remember that long to-do list at the beginning of this story – all the things that need to happen before a candidate is hired? Well those HR tasks don’t come cheap. Costs can add up fast when managing the hiring process in-house. When working with a staffing firm, the employer doesn’t need to worry about spending money things like advertising, skills assessments and background checks. That’s all taken care of by the staffing firm. Of course, a firm’s services aren’t free – but the cost savings an employer can gain by moving their HR efforts to a firm can be significant.

Less Risk

Most staffing firms will offer a guarantee for their direct hire placements, so there’s little risk if the new hire doesn’t work out for some reason. A.R. Mazzotta offers a comprehensive 6-month replacement agreement that offers 100% protection for the first 90 days of employment. Before signing on with a staffing firm for their direct hire services, find out what type of guarantee they offer.

Start Landing Better Candidates

As one of the top staffing firms in CT, A.R. Mazzotta’s direct hire recruiting services are proven to deliver top-notch talent to the clients we work with. Learn more about our recruiting for direct hire services then reach out to start the conversation about a customized staffing solution for your company.

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