Direct hire is when a company recruits an employee onto its own payroll permanently, rather than through a temporary or contract arrangement. A recruiter or staffing agency may source and screen candidates, but the hired person becomes a full-time employee of the company from day one — making it the route for long-term, core roles.
In a direct-hire engagement, a recruiter or agency finds and screens candidates for a permanent role, then presents a shortlist. The company interviews, selects, and employs the chosen candidate directly — the new hire is on the company's payroll with full employee status and benefits from the start. The agency is typically paid a one-time fee, often a percentage of first-year salary, on a successful placement.
Direct hire is permanent from day one. Contract staffing places someone for a fixed term, usually on the agency's payroll. Temp-to-hire (contract-to-hire) starts as a contract and converts to permanent if it works out. Direct hire suits roles you are confident you want filled long-term; contract and temp-to-hire suit uncertain, project, or trial situations.
Use direct hire for core, long-term positions where continuity, culture fit, and retention matter, and where you want the employee fully invested in the company from the outset. For senior or hard-to-find leadership roles, executive or professional search is the specialised form of permanent hiring to consider.
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