Disadvantages of Direct Hire Staffing

There are some drawbacks to direct hiring, despite its benefits. Let me list some: 

1.   High cost:

A potential disadvantage of direct placement staffing is its cost. Malaysia employment agency most commonly charges a one-time placement fee for direct hires, which can vary according to the position level and agency. With direct-hire staffing, a new employee joins the company's payroll immediately. The employer is responsible for offering a retirement plan, insurance plan, and other benefits.

2.   Time-consuming:

Direct hire requires more time than temp-hire or contract hire. The hiring process will require more time upfront to seek out the best candidates. Also, training and onboarding a new employee takes more time. It may be better to hire a temporary candidate if you need urgent hire.

3.   No probational period:

Many candidates and employers would like the option of having a trial period before hiring. In this way, they will know whether the candidate fits the role well before hiring them. You will remain the employer of record even if a guarantee period gives you some flexibility on fees paid.

If someone is hired directly, it is more difficult for the company to assess whether they are the best fit for the position before making a full-time offer. That is why it is so important that the staffing agency is focused on making the right hire the first time. In this way, direct-hire staffing insurance is considered secure.