Direct hire
What is a direct hire?
A direct hire is a candidate that the organization hires onto its payroll for a permanent role, rather than for a contract role or through a third-party recruitment agency. Direct hires become part of the organization from day one, and they enjoy all the benefits, including time off, medical insurance, statutory entitlements, and career opportunities.
Why do companies choose to have direct hires?
Organizations typically opt for direct hires to foster stronger relationships with their employees. When they are actively involved in the hiring process, they're more likely to find candidates who better align with their organization's culture, values, mission, and vision. Direct hires have better job security, which in turn helps improve their engagement levels and retention. Since direct hires in permanent roles demonstrate greater consistency and commitment, organizations typically hire them for strategic and other leadership roles.
What is the difference between direct and temporary hires?
While direct hires are suitable for long-term roles, temporary hires usually take up contract-based short-term projects. Check out the table below to understand the differences between a direct and temporary hire:
Aspect | Direct hire | Temporary hire |
Nature of employment | Permanent employment | Short-term or project-based employment |
Payroll | Employee is on the organization’s payroll | Usually on a staffing agency’s payroll |
Duration | Ongoing, with no predefined end date | Fixed duration or until project completion |
Benefits and statutory compliance | Full benefits and statutory entitlements provided by employer | Limited or managed by the staffing agency |
Purpose of hiring | To fill business-critical or long-term roles | To meet immediate, seasonal, or short-term needs |
Workforce planning | Supports long-term workforce and succession planning | Used for workforce flexibility |
Does direct hire mean no interview?
No, direct hire doesn't mean that the organization hires the candidate directly without an interview process. Just like other candidates, direct hires also go through a structured interview process to make sure that they have the right set of skills and competencies required for the role. The interview process is facilitated by the organization itself and often involves resume screening, skill assessments, manager interviews, reference checks, and background screening. Direct hire simply means permanent employment, and not the absence of interviews.
What roles are usually filled using direct hires?
Direct hires are usually preferred for roles that are central to the business. These include HR operations, finance, operations, customer success, managers, department heads, compliance, legal, senior leadership roles, and more.
Are direct hires eligible for probation periods, too?
Yes, direct hires may be put on probation at the start of their employment to assess their performance and ensure that they are a good cultural fit for the organization. The probation period may range from three to six months based on the organizational policy and the seniority of the role.