How Direct Hire Staffing Reduces Recruitment Costs

Adding new team members through direct hire staffing is always exciting because it signals growth within the organization. 

With that in mind, staffing costs can spike during the hiring process, so it’s important to know how to keep these expenses on the lower end of the scale while finding and ramping up your new employees. 

The good news is that direct hire staffing is inherently cost-effective, so following this method already puts you on the right track. Here are a few methods that will help you keep costs low during direct hire recruitment. 

1. Streamline the Recruitment Process

This may sound obvious, but the fact that direct hire staffing focuses on finding someone for an exact role actually streamlines the recruitment process. Rather than starting the interview section with a broader pool, the narrow recruitment scope means you’ll perform fewer technical interviews while speaking to a higher number of qualified individuals. 

2. Reduce the Risk of Bad Hires

Research suggests that losing an employee can cost up to 200% of that person’s annual salary. So, depending on the circumstances, losing an employee can signify hundreds of thousands of dollars in losses. 

There is no doubt that bad hires can place a tremendous strain on your business. The good news is that direct hire staffing increases the chances of finding a great fit in terms of both skill and company culture. This means a lower risk of attrition and expensive employee turnover. 

3. Select from a Curated List of Candidates

Direct hire recruitment allows you to choose from a select group of candidates, reducing the amount of time you have to spend analyzing and making decisions. 

Plus, if you work with a specialized agency, you can reduce internal pressure during the hiring process and focus on getting the right candidate on board.

4. Minimize the Learning Curve

Finding the right candidate in terms of fit and skills can help reduce their learning curve and boost their engagement significantly. The key here is to ensure that the agency conducting the initial vetting and screening understands the basic skills and personality traits that work well with your team. 

As long as you strike the balance, your new team member will start contributing to your bottom line sooner than most candidates. 

5. Avoid Over-Leaning on Temporary Employees 

Temporary employees can play a huge role while you identify the right candidate. However, leaning on a temporary candidate too much may not be a good long-term strategy. 

The reason for this is that temporary workers lack the technical knowledge and depth of experience needed to be successful in most roles. Meanwhile, temporary employees incur additional fees and training costs, so their hours tend to be less profitable than a direct hire professional. 

Which Method of Recruitment is the Most Cost-Effective?

Before answering this question, let’s categorize the different recruitment methods you can choose. 

There are many recruitment methods you can opt for, but most of them fall into the categories of in-house, outsourced, and hybrid. 

In-House Recruitment

In-house recruitment processes consist of using your internal team to source candidates, perform interviews, screen applicants, and handle all other aspects of the recruitment process. In this setup, most of the pressure falls onto the shoulders of the human resources department, though it’s also essential to lean on areas like operations to conduct technical interviews. 

Outsourced Staffing

Outsourced staffing occurs when you don’t handle any of your recruitment process in-house and instead choose to hire a third party for the entire process. In this scenario, the staffing agency or company handles everything including technical interviews, usually following detailed instructions provided by the hiring organization. 

Hybrid Recruitment

Last but certainly not least, hybrid recruitment models utilize both third-party assistance and in-house resources to recruit new employees. While the costs vary greatly for in-house and outsourced models, hybrid recruitment is usually the most cost-effective. 

The reason for this is that the recruitment agency usually handles tedious, yet necessary tasks like screening while the hiring company focuses on interviews and skill evaluation. This increases the productivity of each process, cutting the amount of time and resources needed to find the right candidate. 

Boosting Your Bottom Line with Direct Hire Staffing

Direct hire staffing can help you find the right candidate, save money during the hiring process, and boost your company’s bottom line for a prolonged period. 

Rather than letting go of the entire process, it’s possible to decrease recruiting costs by partnering with a great staffing agency that handles processes like sourcing, screening, and onboarding. This will allow you to focus on the interview, skill tests, and other technical aspects of the recruitment process in order to find a candidate that has a positive impact right away. 

Looking for a capable professional to join your team? Get help finding the more talented direct hires.