Professional staffing agencies are excellent resources for filling your direct hire positions. These are positions where your organization immediately places the candidate on their payroll upon acceptance. Staffing or recruitment agencies can help you determine your hiring needs, company goals, timelines and budget. One of the most important yet overlooked factors to take into account is the agency’s direct-hire agreement.
Direct hire agreements go over the professional expectations set for both you and the agency. You want to make sure this agreement aligns with your organization’s mission and ultimate goals. Determining what to look for in an agency’s direct-hire agreement isn’t always easy, but managing these expectations is key to positive and long-term relations.
Benefits of Direct Hire Agreements:
Utilizing a recruitment agency to fill your direct hire positions has several advantages. For one, the pool of applications is much more extensive, and the agency has gotten to know all of them individually. That means the agency already has a handful of candidates in mind that they believe would best fit your organization’s needs, mission and budget.
By employing the resources of a staffing agency, you’re saving yourself the time and energy it takes to satisfy even those hard-to-fill positions. Plus, direct hire candidates are more likely to have a sense of loyalty to their organization, ensuring retention and lowering employee turnover rates.
Choosing a Direct Hire Agreement:
There are plenty of staffing and recruitment agencies to choose from, but determining the best direct hire staffing agreement is critical to success. Accepting a permanent placement candidate is a huge commitment, so you must feel confident in your decision.
Direct hire staffing agreements should contain the following:
Type of service: Always make sure your direct hire staffing agreement clarifies that the agency is providing a direct-hire candidate. While this may go without saying, recruitment agencies offer various staffing solutions. You want to make sure there is no confusion in the service they are providing.
Clearly indicated fees: Payment structure varies on the staffing agency itself. Some agencies require a flat rate per candidate while others charge a percentage of the candidate’s annual salary.
Billing schedule: The agreement should clearly state the payment due date or the invoice schedule if there are installments.
Payment terms: Payment terms outline how and when payment is accepted. It will also cover how the agency addresses late fees if payment is overdue.
Signatures: Your signature is what legally binds you and the agency to the agreement. You must understand everything in the contract before signing. If anything lacks transparency, you should always feel comfortable enough to reach out to the agency for clarity.