Direct Hire Recruiting

An agency recruits a permanent employee placed directly on your payroll.

In a direct-hire arrangement, a staffing agency recruits, screens, and refers a candidate whom the employer hires directly as a permanent, full-time employee. The worker is on the employer's payroll from the start; the agency is typically paid a one-time placement fee.

Who it's for

Employers filling permanent roles who want recruiting help — especially for specialized, hard-to-source, or leadership positions where a strong permanent hire matters most.

How it works

• The employer defines the permanent role, compensation, and requirements.
• The agency sources and screens candidates, presenting a shortlist.
• The employer interviews and selects; the hire joins the employer's payroll directly.
• The agency is paid a placement fee, often a percentage of first-year compensation, sometimes with a replacement guarantee.

Common use cases

• Filling permanent, specialized, or leadership roles.
• Accessing an agency's candidate network for hard-to-find skills.
• Offering candidates a permanent role from day one to attract stronger talent.

Advantages

• The worker is a permanent employee immediately — good for retention and commitment.
• The agency handles time-consuming sourcing and screening.
• Many placements include a replacement guarantee period.

Limitations to weigh

• A placement fee is due when the hire starts.
• No temporary trial period to evaluate on the job first.
• Time-to-fill can be longer for senior or niche roles.

Questions to ask a staffing agency

• How is the placement fee calculated, and is there a replacement guarantee?
• What is your typical time-to-fill for this type of role?
• How do you source and screen candidates?
• What happens if the hire doesn't work out within the guarantee period?

Frequently asked questions

Related staffing services

Common industries