Agency Vs. Direct Hire Posted September 16, 2015



Finding the right professional for your staffing needs can be difficult. That is why a staffing agency plays a critical role in helping companies find the right candidate for the job. Hiring agencies are meant to help businesses find the best employee for their needs, however, with taking into consideration the anticipated high cost of a hiring agency, some companies do not want to spend the money on something that they feel they could save on by doing it in-house. That is why to help you decide if a hiring agency is right for you, we have compiled a list to help you weigh out the pros and cons.

enovate_medical_save_time_and_moneyThey can help save time

Once a company starts to release ads for the open position it can take some time to get responses and resumes rolling in. By going through an agency, whom already has a network of professionals on file; you can cut down the time it will take to find a potential candidate and start the interviewing process ensuring less time that your business is understaffed.


Saving Money

As it was touched on earlier, many companies feel that the cost of hiring a staffing agency is too high because they only look at the actual fees from the agency. They do not take into consideration the benefits and value that the fees are actually providing. When a company has an open position that is not filled immediately, they have to pull resources from other places within the company. This reduces overall productivity which cost the company drastically more money than it would cost to hire the agency.


focusAn Agency Will Focus On the Best

There is a common misconception that if a person goes through a hiring agency, it is because they cannot get hired anywhere else. Because of this belief, most companies opt to direct hire in hopes of finding the better candidate. The right agency works with fewer clients to ensure that the individual they do submit is the best of the best. This means you have a much higher probability of hiring the right candidate for the job that will require less training and be ready to go from day one.



Since the great recession, companies have been more gunshy to hire full-time employees. This is because larger companies have laid off hundreds of employees when the economy took a dive.  Now that things are starting to come back they are wondering if the economy will hold. No company wants to have to lay off employees, so if they can use an agency to hire employees on an as needed bases, then there isn’t much of a reason to worry about direct hiring- which could potentially lead to layoffs should the economy not hold.


Graph down risk arrow. 3D illustration.

Reduced Risk

Being an employer comes with a lot of legal risk and responsibility; not to mention financial risk should the employee leave unexpectedly or have to be fired. Using a staffing agency takes the pressure off a company as the firm assumes all the risk associated with the candidate.



Lower Employee Overhead

The vetting process alone for a new employee can be tedious. By the time a company has hired, trained, and have the new employee ready for the day to day duties it can cost up to 1.5-3.5 times more than the employee’s salary. By using an agency to do the vetting for you, the agency itself takes on the vetting costs up to a point in the process. However, even more beneficial than that, if the new hire gets into the position and doesn’t work out the staffing firm will typically guarantee a replacement. This guarantee helps to save time and money for your company.


With so many benefits of using a hiring agency, it hard to think a company would want to waste time, money and resources by direct hiring its employees. DC Powell and Associates is a full-service employment agency dedicated to helping companies quickly and efficiently find the most qualified candidate for their staffing needs.





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