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The ROI of Direct Hiring: Temp vs. Direct Hire

Why Your Temp-to-Direct Strategy Isn't Working and What You Can Do About It

Are you still relying on temporary hiring companies for volume hiring or seasonal work? If so, you’ve probably noticed a shift in the availability of quality candidates as well as a change in how temporary workers integrate into your workforce. There’s a good reason for those changes. Over the past decade, we have seen the unemployment rate drop from 10% to 3.8%. Jobs are plentiful and quality candidates are even more difficult to find. As the U.S. economy has recovered and the unemployment rate has dropped substantially, we’ve also seen changes in the way candidates look for work, the kinds of jobs they want, and their willingness to accept a position.

Are Temporary Hiring Companies Hurting Your Bottom Line and What Can You Do About It?

Low unemployment rates mean candidates can be pickier about their jobs. They can hold out for a job with full benefits, for example, rather than settling for a part-time or temporary position. And because full-time positions are more readily available, candidates no longer feel the need to “audition” for a job by accepting a temporary position in the hope that it will become permanent.

But where does that leave employers? Is the trend toward direct hires good for your bottom line? What’s the return on investment or ROI on direct vs. temporary hiring, and how does that affect your workforce?

 

Table of Contents:

  • Face-Off: Temp vs. Direct
    • Temporary Hires: Pros and Cons
    • Direct Hires: Pros and Cons
  • How Direct Hire Save You Money: Cost of Temp vs. Direct Hire
    • Tale of Two Case Studies - Call Center Hiring...Temporary vs. Direct Hire
  • Make the Switch: A Temporary to Direct Hire Transition Strategy
  • Tips for a Successful Transition

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