Direct Hire
Direct hire is a placement in which a staffing agency recruits and screens a candidate whom the employer hires directly as a permanent employee — on the employer's payroll from day one.
Unlike temporary or temp-to-hire arrangements, there is no agency payroll period: the worker is the employer's employee from the start. The agency is compensated with a one-time placement fee, commonly a percentage of the hire's first-year compensation, and sometimes offers a replacement guarantee if the hire leaves within a set window.
Direct hire is most often used for permanent, specialized, or leadership roles where the priority is a strong long-term hire rather than short-term flexibility.
Frequently asked questions
What is a placement fee in direct hire?
A placement fee is the one-time charge an agency earns for a successful direct-hire placement. It is frequently calculated as a percentage of the new hire's first-year salary, with the exact rate and any guarantee terms set by contract.
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