US direct hire revenue is expected to increase 8% this year to $13.7 billion, according to research by Staffing Industry Analysts. The largest providers of direct hire in the US include Robert Half (NYSE: RHI), Allegis Group and MRINetwork.
Direct hire is also this week’s Staffing Word of the Week.
The SIA Lexicon describes direct hire as:
A term commonly used in North America 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. In a Direct Hire arrangement, the provider is only paid a fee (normally calculated as a percentage of the candidate’s first-year salary) if a placement is made, as opposed to a “retained search” arrangement. Outside of North America, Direct Hire is more commonly referred to as “permanent placement.”
The Lexicon is available free online and includes terms from across the workforce solutions ecosystem.