Recruiter's Glossary

Examples: SOW • VMS • Contingency Search

Direct Hire

Term from Recruitment Services industry explained for recruiters

Direct Hire is a permanent employment arrangement where companies work with recruiting agencies to find and hire full-time employees. Unlike temporary or contract staffing, direct hire means the selected candidate goes straight onto the client company's payroll from day one. This approach is often used for filling important long-term positions. Companies typically pay the recruiting agency a one-time fee based on the hired employee's first-year salary, usually ranging from 15% to 30%. Other common names for this type of recruitment include "permanent placement" or "full-time placement."

Examples in Resumes

Successfully placed 50+ candidates through Direct Hire recruitment

Managed Direct-Hire accounts generating $500K in annual revenue

Specialized in Direct Hire and Permanent Placement positions for IT professionals

Typical job title: "Direct Hire Recruiters"

Also try searching for:

Permanent Placement Recruiter Direct Hire Specialist Full-Time Placement Recruiter Corporate Recruiter Talent Acquisition Specialist Permanent Staffing Consultant

Where to Find Direct Hire Recruiters

Professional Networks

Job Boards

Industry Events

• Staffing World Conference
• Local Recruiting Meetups

Example Interview Questions

Senior Level Questions

Q: How do you determine the appropriate fee structure for direct hire placements?

Expected Answer: Should discuss market analysis, competition research, position level considerations, and ability to justify fees to clients while maintaining profitability. Should mention industry standards and value-based pricing strategies.

Q: How do you handle a client who wants to hire your candidate directly without paying the placement fee?

Expected Answer: Should explain professional approaches to fee protection, importance of clear contracts, maintaining client relationships, and strategies for demonstrating value to prevent fee avoidance.

Mid Level Questions

Q: What is your process for qualifying a direct hire job order?

Expected Answer: Should describe gathering details about position requirements, salary range, company culture, timeline for hiring, and ensuring proper authorization for the recruitment fee.

Q: How do you manage candidate fall-offs during the guarantee period?

Expected Answer: Should discuss replacement strategies, maintaining candidate pipelines, communication with clients, and prevention methods through thorough screening and placement processes.

Junior Level Questions

Q: What's the difference between direct hire and contract placement?

Expected Answer: Should explain that direct hire means permanent employment with the client company, while contract is temporary employment, usually through the staffing agency's payroll.

Q: How do you source candidates for direct hire positions?

Expected Answer: Should mention basic sourcing methods like job boards, LinkedIn, referrals, and database searching, showing understanding of different approaches for permanent vs. temporary roles.