In an ever-evolving global job market, employers and potential employees are always looking for ways to make sustainable and meaningful connections. As we look to the new year and consider strategies in building and retaining quality, reliable talent, staffing agencies are also evolving business practices to match market demand and trends.
The Direct Hire
A direct-hire, as defined by Staffing Industry Analysts (SIA) is “commonly used to refer to services provided by a staffing agency related to helping an organization obtain an employee to work on their payroll as opposed to temporary staffing relationship where the employee is typically working on the staffing firm’s payroll.” This is in contrast to contract workers or contract-to-hire, who are employed on a temporary basis and are connected to the employer through the staffing agency.
“Although the COVID-19 pandemic greatly affected the economy and job market in 2020, 2021 has shown a promising recovery with job surges across multiple sectors.” Says Stephanie Staiano, CSS ProSearch Sales Director.
Demand for Direct Hire
Demand for direct-hire services saw a drop in the first two quarters of 2020, decreasing the median growth rate among the top 30 firms to -25%, but some firms and market sectors showed resilience and were able to capitalize on the opportunities created by remote and hybrid remote models. Primarily from a single e-commerce client, one US-based firm growing by over 200% in 2020.
The global direct hire market accounted for more than $35 billion in 2020, making up for almost 8% of the global market, with the US holding the largest national market with more than 25% of the global market. (SIA)
The Resurgence
With new COVID variants and constantly changing health policies keeping the market and business practices uncertain and unemployment now down to under 5% from last April’s 14.9%, we are continuing to see a resurgence in a candidate-driven market, where potential applicants have the upper hand as “jobs are abundant, and top-tier candidates are often scarce.” Despite not having as much of an upper hand as in an employer-driven market, hiring managers can still navigate this climate by accommodating candidate needs while prioritizing potential employees as long-term investments. As a staffing agency, CSS ProSearch incorporates this investment-minded hiring process in our partnerships with clients and candidates, taking the consultant’s approach to make lasting, best-fit connections in the technology, healthcare, and consulting verticals.
Applicants and candidates are searching for long-term placements, and focusing hiring efforts on direct hires can be a way of ensuring that your team stays on top of the changing tide while acquiring long-lasting, quality partnerships. Check out our blog to read more on how you can stay ahead of the game, or reach out to us directly to find out more about finding and retaining your next quality candidate.