In short: Temporary staffing is ideal when your need has a foreseeable end date. Temp-to-hire allows you to see workers on the job before you make them a permanent part of your team. Direct hire is used when you know with certainty who you need and are willing to wait for them. Consider duration of need, certainty of fit, and urgency of start when hiring. RHO Hiring provides temp, temp-to-hire, and direct hire services throughout Michigan: (248) 843-0000.
Those three answers handle most of the heavy lifting, so we created a short guide around them. Answer a few questions and we'll direct you to a model. Then continue reading to learn about how they work, who employs the worker and where each approach tends to fall apart.
Find your fit
Answer the questions above and the model that fits your need shows here.
The three models at a glance
| Temporary | Temp-to-hire | Direct hire | |
|---|---|---|---|
| Who employs the worker | The staffing agency | The agency, until you hire the person | You, from the first day |
| Best for | Peaks, projects and cover for absences | Permanent jobs where fit matters | Permanent jobs with a clear profile |
| Speed to start | Usually the fastest | Usually fast | Slower: it's a full search |
| Your commitment | The length of the assignment | A trial period, then a decision | A permanent hire |
| How it's usually billed | By the hour worked | By the hour, then agreed terms for hiring | Usually a one-time fee |
| Who runs payroll | The agency | The agency, then you | You |
None of them is superior to any other. They solve different problems. A plant seeking 12 additional packers to work for six weeks does not need the same resource as a plant seeking one maintenance lead for the next decade, even if both are asking for "employees."
Temporary staffing: when the need has an end date
In temporary staffing, the agency is the employer. According to the EEOC guidance on staffing firms, the temporary employment agency recruits, screens, hires and sometimes trains its employees. The agency sets and pays wages, withholds taxes and bills the client for the employees' work. However, during the work assignment, the client ordinarily controls the worker's working conditions, supervises the work and determines the duration of the assignment.
When you know the need will end, temporary staffing is the obvious choice:
- A seasonal spike like Q4 in a fulfillment center or harvest time at a cannabis facility.
- Something new like a contract or product launch before you know if the volume will continue.
- Cover for vacations, leaves and a run of absences
- A project with an ending: inventory count, move, line changeover.
- Trying out a new shift before you staff it permanently
Here's one rule that applies whether you assign someone for a day or a year: safety. According to OSHA, both the staffing agency and the host employer are considered joint employers of the temporary worker and are each responsible for providing a safe workplace. Host employers are also responsible for ensuring that temporary workers receive the same training and safety and health protections as any other worker. "They're only here a month" is not a training plan.
What is temp-to-hire, and how does it work?
Temp-to-hire begins as a temp position, with both parties understanding that the employee could become permanent if things work out. You see what you don't during an interview: if they show up on time, keep pace with the line, follow instructions, and fit in with the team. The worker sees your floor, your management, and your shifts before agreeing as well. Both sides make an informed decision.
This also aligns with what many temporary workers desire. According to the Bureau of Labor Statistics' latest survey on work arrangements, 48.2 percent of workers paid by a temporary help agency preferred their arrangement as of July 2023. Compare that to 27.7 percent who would have preferred to have a traditional arrangement. For those workers, providing a clear path to a permanent position is something that can motivate them to stick around and perform well.
Define the job
Capture what the worker will do, which shift they will do it on, and what good will look like 30 days from now. You need to measure something during the trial.
Agree the terms up front
Agree with the agency on when and how you will be able to hire the worker ahead of day one, not on the last day.
Tell the worker it's temp-to-hire
Employees work differently when they know the job could become theirs. State that on day one.
Give feedback early
Do a check-in after the first week, then again at about a month. No one should find out in week eight that something wasn't right in week two.
Decide, and say so
Hire, extend, or release the worker and notify the agency and the worker quickly.
Direct hire: when you know exactly who you need
In a direct hire situation, the agency finds and screens candidates and you hire that person onto your payroll on day one. There is no trial period through the agency, so the job description, interviews and references mean more.
Direct hire is appropriate when you have a well-defined position to fill, and the employee will likely be with you for years to come: think shift lead or supervisor, maintenance technician, a quality position requiring certain experience, or just about anyone who will have knowledge critical to your operation. Generally speaking, direct hire will take longer than a temporary placement because you are looking for that one right candidate, rather than several qualified candidates.
How do you choose between the three models?
Where each model goes wrong
- Keeping temp workers for a permanent position for an extended length of time, and constantly having to train someone new every couple weeks
- Starting a direct-hire search for a job you can't describe yet
- Beginning temp-to-hire without agreeing the terms for hiring
- Leading a temp employee to believe their position might become permanent when there are no current plans to make it so
- Skipping site-specific safety training because the assignment is short
“We strive to provide the best employees to every client.”
George MakoveyCEO, RHO HiringTemp, temp-to-hire and direct hire questions
Is temp-to-hire the same as a probation period?
No, not exactly. During temp-to-hire, the employee works for the agency, not for you. If you choose to hire them, they will join your payroll according to the terms you negotiated with the agency.
Which model is fastest?
Temporary and temp-to-hire placements are typically quickest to fill since an agency is placing people into an open position. Direct hire takes longer as you are searching for that one specific individual.
Can we switch models later?
Frequently, yes. Sometimes a temp assignment turns into temp-to-hire if a permanent opening becomes available. Make sure you and your agency agree up front on how that would be handled.
Does the agency or the employer keep a temp worker safe?
Both the staffing agency and the host employer. When temporary workers are involved, OSHA sees the agency and host employer as joint employers who are both responsible. OSHA expects hosts to give temps the same training and safety protections as any other workers.
Who can help us choose between temp, temp-to-hire and direct hire?
A staffing agency that provides all three services can compare them to your job opening. RHO Hiring provides temp staffing, temp-to-hire and direct hire for warehouses, factories and production floors in Michigan. Give us a call at (248) 843-0000 and a manager will typically return your call within a couple of hours.
How RHO Hiring staffs all three models in Michigan
Temporary staffing, temp-to-hire or direct hire? RHO Hiring provides all three services for warehouse, factory and production floor positions throughout Michigan. We are locally owned and operated, not a franchise. Our owners work directly with you. We learn about your workflow, shifts and volume before any start date. Our workers go through screening for reliability and attention to detail, and we train them on safety protocols before their first shift. Not sure which model is right for your needs? Just let us know what the position involves and we can walk through your options.
Sources
Next guide
To reduce temp worker turnover, focus on the start: the majority of it occurs early on. Luckily, most cases are preventable. RHO Hiring's guide covers what to do before day one, on day one, during week one, and how to know when a temp is worth hiring.
