The Dynamics of Direct Hire Services in Employment Generation

Direct hire staffing service firms had emerged as the distinct placement services providers specialized in placing the highly skilled office and administrative support professionals in full time job positions. The job positions may relate to any type of organizations or enterprises from small and medium sized enterprises to Multinational Corporations or MNC’s. The direct hire staffing services are enabling organizations to get candidates as their full time employees in positions across major technologies, business operations and industries. Through these type of services, companies are able to deliver their products and services on time and creating a good rapport with their business clients and customers.

In this type of services the mode of payments are usually based on receiving payments on contingency basis and therefore the client organizations pays the staffing service providers only when they had placed the candidates as their employees. This mode of staffing is eliminating the time consumed with the tasks associated with the recruiting and hiring by the organizations themselves. Organizations looking for regular full time employees are approaching the Employment Agencies or staffing firms due to the following three factors:

Not having time or resources to advertise openings,
Unable to sift through numerous applications and resumes due to lack of qualified human resources staff,
Want to invest their time on core business activities rather than on scheduling and conducting numerous interviews and skill testing the applicants.
Want to assimilate new techniques for their staffing requirements by utilizing these services.
The staffing firms are the best source for finding the best possible match for the client organizations’ specific job requirements. The role of staffing services can be observed from the fact that about seven firms generated at least $25 million in direct hire staffing revenue in 2011 accounting for about 10% of the total staffing market. The top two staffing firms in the United States, Robert Half International and Randstad companies on the staffing firm list cumulatively represent 10% of the U.S. direct hire services market. As per the estimates of the staffing industry analysts, this generated about $5.1 billion in 2011.

It is estimated that the talent acquisition through Staffing services or agencies in the United States number around 150 million professionals out of which an estimated twenty five percent of them change their employers every year. These services are helping the organizations in getting qualified and well-experienced employees irrespective of their business sectors or industry.

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