Every week we comb through the news to find employment trends affecting the hospitality industry so you don’t have to. This week’s topic: is direct hire good for hospitality businesses?
In staffing, there are several types of employment when placing workers or finding talent for clients. These solutions are beneficial for both parties, whether they provide flexibility or consistency, a diverse talent and employer pool, or cost-effective processes. Some of the employment types offered by staffing agencies can include temporary, temp-to-hire, and direct hire.
What is direct hire?
Direct hire, sometimes called permanent placement, is defined by Staffing Industry Analysts as “a service provided by a staffing agency related to helping, for a fee, an organization obtain an employee to work on their payroll as opposed to a temporary staffing relationship where the employee is typically working on the staffing firm’s payroll.” But why do businesses opt for direct hire?
Is direct hire good for hospitality businesses?
For one, the staffing agency they partner with handles a majority of the “heavy lifting”, including sourcing, recruiting, and interviewing; this removes many of the time-consuming tasks associated with hiring. For that reason, businesses likely see lower costs as the recruiting process is typically included in the fee paid to the staffing organization. Often, as is the case with LGC, agencies will handle all the initial recruiting and interviewing at no cost and you’ll only pay when a candidate is hired. With numerous benefits associated with direct hire, it’s no wonder than in 2017 this market brought in $12.7 billion in the U.S., making up 42% of direct hire revenue globally.
Throughout 2019, unemployment has remained steadily under four percent, making hiring more challenging than normal. For that reason, more businesses are turning towards direct hire to fill in gaps on their team.
Is direct hire good for hospitality businesses? I think it’s safe to say that yes, it is. In the current hiring climate, it’s important to be creative when looking for great employees. By exploring various staffing solutions, such as direct hire, your business will benefit in more ways than one.
Did you know that LGC offers direct hire solutions specifically for staffing hospitality professionals? Learn more by contacting us today.