In the manufacturing and light industrial world, not every hiring decision looks the same. You may need a steady crew of long-term employees on one day and a flexible team of seasonal workers the next. Choosing the right staffing model helps you maintain productivity while keeping costs and risk under control.
This article walks through the three most common hiring models used by light industrial employers: direct hire, temporary (temp), and temp-to-hire staffing. Each option offers unique financial and operational advantages depending on your goals.
What is Direct Hire Staffing?
In a direct hire arrangement, your company works with a staffing partner to identify and recruit a candidate for a permanent position on your internal team. Once hired, the employee is fully onboarded as part of your workforce, and your company assumes all employment responsibilities starting day one.
Direct hire roles are ideal for skilled positions where long-term retention is the goal. Staffing firms typically charge a one-time placement fee, calculated as a percentage of the employee’s expected annual wages. Your team manages payroll, benefits, and training internally.
What is Temp Staffing?
Temporary staffing provides a flexible solution for short-term needs. The worker remains on the staffing agency’s payroll while assigned to your facility, and your business pays an hourly bill rate that includes wages, taxes, workers’ compensation, and agency support.
Temp staffing is commonly used to cover seasonal spikes, project-based work, or unexpected absences. Because the staffing agency serves as the employer of record, you don’t need to worry about administrative tasks or liability exposure related to employment.
What is Temp-to-Hire Staffing?
Temp-to-hire bridges the gap between short-term and long-term hiring. A candidate is placed on assignment with the intention of transitioning to a permanent position if the fit is right. During the trial period, the staffing agency continues to handle payroll, taxes, and benefits.
This model is especially useful if you want to evaluate a worker’s performance and reliability before making a long-term commitment. Many staffing partners waive or reduce placement fees once the employee completes a minimum number of hours.
Which Staffing Model Makes Sense Financially?
Your choice depends on the needs of your operation. Direct hire is ideal for highly skilled or leadership positions where long-term continuity matters. Temp staffing is great for quickly filling shifts or adapting to production changes. Temp-to-hire is a smart middle ground that gives you time to evaluate a worker’s fit before making them part of your team.
In high-turnover or production-heavy environments, many companies rely on a combination of staffing models to stay efficient. By understanding the cost structures and flexibility each one offers, you can build a workforce strategy that aligns with your budget and business goals.
Want help determining which model works best for your next hire? Explore more articles in our Learning Center or connect with our team to talk through your options.
