Contract vs. Direct Hire: Which Staffing Solution is Right for your Business?

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Your company’s possible staffing solutions typically offer two potential employment models: contracts or direct hire. Which approach works best likely depends on your business’s current hiring needs and typical project work. For example, making a permanent hire to meet a temporary need ultimately results in unnecessary spending over time.

Let’s examine the benefits of hiring permanent employees as well as using contract or contingent workers. Depending on the specific scenario, either option serves your business’s needs more effectively. Partnering with a staffing agency offering multiple employment options, like CAREERXCHANGE® (CXC) ultimately makes the most sense!

The Advantages of using Contract Professionals

Onboarding contingent workers provides significant scalability to your company, one of the biggest benefits of this staffing approach. If you need to increase your number of workers for a busy project, hiring contractors increases productivity without waste. Once again, why make a permanent hire to meet a temporary need?

Another use-case where onboarding a contractor offers an effective solution is when closing a skills gap. What if your team lacks the right expertise for an important project? Don’t risk a failure hampering your business growth.

Instead, simply onboard someone with the required skills on a temporary basis. CXC’s large candidate pool contains the specific expertise your business needs, available for contracting.

Situations when a Permanent Hire offers the Right Approach

In some situations, a direct hire remains the most appropriate staffing solution for your organization. For example, when your company needs a senior-level professional, a permanent hire offers the best return. Finding someone with potential managerial experience requires a more discerning staffing effort. You likely don’t want to incur those extra expenses when hiring a contractor for a temporary need.

In short, the direct hire approach makes the most sense for long-term staffing needs. Finding someone with the right skills, experience, and cultural fit requires a larger investment. Remember that cultural fit ultimately plays a key role in the retention of any new hire. Our recruiters at CXC understand your company culture and strive to find compatible candidates to join your organization.  

Importantly, any hiring mistake turns those staffing expenses into sunk costs! These include any spending on recruiting, onboarding, and training a new hire. Work with CXC to reduce the risks of making the wrong choice between candidates. Expect a more efficient and productive organization as a result!

Whether you need to hire an employee or a contractor, CAREERXCHANGE® is a valuable partner for your business.

As one of the top staffing agencies in South Florida, we provide talented candidates and flexible employment models. We provide your business with the scalability it needs for success! 

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