Are You Afraid of the Direct Hire Fee?

By | | HR and Management Tips

A direct hire is when a company brings a candidate in on their payroll instead of the staffing agency’s payroll, as in contract and contract to hire. The staffing agency sources and fully vets the candidate, schedules the interview(s) and facilitates the process.  The staffing agency is then paid a percentage of the annual salary, usually somewhere between 15% and 25%. It might seem like a large chunk of change, but the reality is that the direct hire fee is worth it.

Here’s why you don’t need to be afraid of the direct hire fee.

Save time and resources

Hiring is expensive, no matter how you do it. Either you spend your own money to advertise and recruit and then use your precious time to do all the legwork associated with hiring, like reading resumes, scheduling and conducting interviews, and checking references. By outsourcing all that work, you are able to concentrate on the interview and making sure you hire the right person.  And, many staffing agencies offer guarantees.  In other words, that direct hire fee is worth it!

Get qualified applicants faster

You’re a busy business leader. You don’t have time to scan resumes, schedule interviews, and check references. You should be focused on the bigger picture—setting short and long-term goals, designing a marketing plan, and motivating your other employees. In the meantime, the job openings in your company will remain open, which hurts your productivity and burdens the rest of your team with excess responsibilities. But if you can delegate recruiting and hiring to a staffing agency, you’ll get qualified applicants—in fact, the most talented candidates—even faster.

Fill those hard-to-fill positions

Every industry and every company has a few positions that are hard to fill, either because they’re so specific or the required training is so demanding. But the experts at a staffing agency can fill those roles with greater ease. They have access to more candidates, candidates who have the necessary skills and experiences. And because recruiters are experts, they know how to evaluate candidates in that short interview period effectively. They’ll take the time to get to know your company and your hiring needs and find the perfect match for you.

Highly vetted candidates

Some staffing agencies, including A.R. Mazzotta, meet every single candidate in person, which means that they’re evaluating candidates on a personal level. They can assess their level of motivation, attitude, character, emotional intelligence, and work ethic. Some agencies even administer formal personality testing to make sure they only present to you the very best talent and don’t waste your time with subpar applicants. This means you don’t have to waste your time scanning every single resume.

A direct hire fee can be intimidating, but when you consider all the time and money you’ll save for a better, more talented candidate who will make valuable contributions to your company, it’s worth it. For more tips on how to optimize your relationship with a staffing agency, contact our team today.