The recruiting business is a respected profession which is part art, part science, no doubt an offshoot of the matchmaking vocation, which no doubt dates back many centuries. The use of an intermediary recruiting firm can reduce a lot of the time and anxiety involved in finding, screening, interviewing, negotiating, and closing an offer with a job candidate, or in utilizing that person's skills on a limited term basis.

Temporary Help, which we now call "contract" or "temp" is one which most companies use at one time or another.

Direct Hire is usually the most lasting form of hiring. When a company hires direct, more time is given in screening, conducting multiple interviews, in-depth reference checking, etc.

Contract-to-Hire, also known as temp-to-hire, is a way to obtain people which combine the temporary and direct hire formats.

DM Stone Recruitment Services is a "full service" recruiting firm, which means that we provide services in all three of the above categories.

The recruiting firm should also take steps to ensure that the temporary employee respects the confidentiality of information he/she has access to while working at your company. Usually this is accomplished through a combination of (a) the contract between you and the recruiting firm, and (b) the recruiting firm's employment application (and possibly your company's own confidentiality agreement) signed by the employee. The employee sent to you should have been pre-screened by the recruiting firm. This usually includes interview and reference checks, but may also include skills testing and background checks, depending on the nature of the assignment and your company's own requirements. You have the right to interview the person prior to starting him/her, and to look at other candidates if you are not satisfied. Sometimes recruiting firms provide a guarantee (say, up to the first eight hours free) in the case where a temporary's abilities, work ethic, etc. are not adequate or in line with the job specifications you initially provided to the recruiting firm.

The recruiting firm will generally bill you an hourly rate for the temporary employee's services, accompanied by a timecard signed by an authorized representative of your company verifying the hours worked. The hourly rate will cover the employee's wages, all associated payroll taxes and direct costs.

Direct Hire:
There are two kinds of direct hire recruiting firms: contingency and retained search. Contingency firms only get paid if they find you the candidate you ultimately hire, whereas retained search firms (which generally place only high level executives) charge you a non-refundable retainer fee up front, followed by additional amounts once the candidate is placed. DM Stone Recruitment Solutions is a contingency search firm, which is the only kind discussed here.

In the case of direct hire, the recruiting firm will refer screened candidates to you, usually by emailing you resumes and cover notes which address your specifications. You should always be as thorough and accurate as possible when giving any order to a recruiting firm, so as not to waste their time and yours. Once you have reviewed the resumes sent to you, you should choose the ones you like, and if possible, provide as much feedback as possible to the recruiting firm regarding the candidates sent, in order to maximize effectiveness.

Once you have indicated interest in a candidate, the recruiting firm will arrange interviews, provide information, negotiate salary and benefits, etc. According to the recruiting firm's standard fee agreement, you will be billed fee depending on your agreement with them.

The recruiting firm should provide you with a guarantee, usually ninety days. If the placed person leaves for any reason during this initial ninety-day period, the recruiting firm should replace the person for free, or provide a refund if it can't. The exception might naturally be if you eliminate the position, which is no fault of the individual hired or the recruiting firm. Often the guarantee is pro rata, i.e., the longer the person has stayed (e.g., 89 out of 90 days) the smaller credit or refund you would be entitled to.

Contract-to-Hire:
Contract-to-hire works much the same way as temporary help, except that you are telling the recruiting firm up front that the temporary worker is to be tried out for a possible direct hiring. This usually means you will do more interviewing up front, and the recruiting firm will do more work on the selection and screening of the candidates up front. Once the person starts the temporary assignment, he/she may be converted to direct hire whenever you are ready to do so. A "Conversion Fee" will be paid according to the standard fee agreement contract you agreed to with the recruiting firm.

1. When first deciding which firm to use, do some prep work; e.g., meet with the recruiter who would be assigned to your account, ask for references (similar companies in your industry), check their website, ask how long they've been in business, how they work, etc. Obviously you'll want to know their fee schedule (which is not always set in stone) and guarantee policy. Take a look at their standard contract and make sure it works for your company.
2. Once you've decided to give a recruiting firm a try, look at them as a "partner" in your recruiting effort. Be honest with them as to your expectations, give them adequate details on your company/department and its culture, tell them how you like to work, and let them know what other sources you are pursuing (if any) besides their firm--e.g., internal referrals, website searches, other agencies. All this will help them to understand your company and do a better job in servicing your account.
3. Once the firm has begun their search and sends you resumes, make an effort to give them timely and thorough feedback. This helps avoid frustration and time wasted by the recruiting firm. Also, be aware that during a tight labor market, a delay of even a couple of days could make the difference between having the opportunity to hire a candidate or losing him/her to another company. When a candidate is lost, you suffer and the recruiting firm feels like they've wasted their time, which creates frustration on both sides.
4. For direct hires, make an effort to check your own references when preparing to hire a candidate. The recruiting firm will be doing its screening, but there is no substitute for your own inquiries, especially when there are technical, industry-specific or company-specific aspects to the position which your management team would understand best.
5. Make sure all your key personnel have met the candidate for a direct hire, if necessary multiple times, until there is a strong comfort level. Keep in mind, of course, that you don't have forever to act in a tight market, and that interviews need to be arranged promptly so as not to lose the candidate to a more nimble competitor.
6. Question the recruiting firm on the results of their background checking as well, so that any information uncovered can be weighed in the hiring decision. If desired, get copies of checks performed.
7. When using temporary workers, keep in mind that your company has a responsibility to supervise, instruct, train (to a degree) and monitor these workers so as to ensure that they perform as anticipated. Hiring a temporary and then leaving them unattended is a sure way to waste your money, aggravate your staff (rather than relieving them) and end up with an undesirable work product. The recruiting firm (unlike a consulting or advisory firm) merely provides the screened and qualified temporary staff--what you do with them is up is up to you.
8. Also keep in mind that, although temporary workers are employed by the agency, this does not relieve you of any responsibility for their well-being or legal rights regarding the workplace. The law in the area of "co-employment" is still evolving (check with your legal counsel), and we are not qualified to advise you in this area. As a rule, however, if your managers and staff treat your temporary employees with the same respect, courtesy and professionalism as they treat their own employees, we believe you are a lot safer than if you treat them in a lesser way. And temporary employees who gain a good impression of your company while working there will be a great advertisement for your company down the road!

We think you'll be glad you did!