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What’s the Difference Between a Direct Hire and a Staffing Agency?

Allen Associates, News & Blog

When it comes to recruitment, understanding the different routes available can make a big difference,  particularly in a competitive market like Oxfordshire. Two of the most common approaches are direct hiring and working with a staffing or recruitment agency. Each offers advantages depending on the type of role, the urgency of the hire, and the internal resources available.

What Is a Direct Hire?

A direct hire means the employer is responsible for the entire recruitment process and brings the individual onto their payroll from day one. This is typically used for permanent roles, where there’s a clear long-term need within the organisation.

Employers manage the job advert, screen CVs, conduct interviews, and handle onboarding themselves. It offers full control over the process and can be cost-effective if the internal team has time and expertise.

When is direct hire a good option?

  • You’re recruiting for a permanent position
  • The role is strategic or senior
  • You have a strong HR function or in-house recruiter
  • You’re not working to urgent timelines

However, direct hiring can be time-consuming and resource-heavy, especially for smaller businesses without a dedicated recruitment team.

What Is a Staffing or Recruitment Agency?

A staffing agency, also often referred to as a recruitment agency, acts as a partner to employers, helping them find suitable candidates quickly and efficiently. Agencies often handle temporary, temp-to-perm, and permanent roles, especially in specialist areas like HR, Marketing, Finance and Administration.

Allen Associates, for example, works closely with clients in Oxfordshire to understand their culture, brief, and team needs,  before sourcing, screening and introducing candidates who are a good match.

Benefits of using a recruitment agency:

  • Saves time and internal resources
  • Speeds up the hiring process
  • Provides access to a wider talent pool
  • Offers insight into salary benchmarking and market conditions
  • Can support with contract or temp roles as well as permanent hires

Agencies also manage much of the admin, from interview scheduling to referencing and, in the case of temp hires, payroll.

Which Hiring Route Should You Choose?

The best route depends on your needs at the time. If you're building a long-term team and have the capacity to manage the process, direct hire may be a good fit. If you're up against deadlines, covering leave, or need specific experience, an agency can offer fast, targeted support.

Direct Hire

Staffing/Recruitment Agency

Permanent roles

Temp, temp-to-perm, and permanent

Slower

Faster

Internal cost only

Agency fee, often success-based

Depends on advert reach

Established talent networks

Final Thoughts

For many employers, working with a recruitment agency isn’t just about filling a vacancy; it’s about saving time, getting better candidate matches, and reducing the risk of a bad hire. Whether you need short-term cover or are recruiting for a permanent position, having an experienced partner by your side can make the process more efficient and less stressful.

Get in Touch with Allen Associates

If you're hiring in Oxfordshire, whether for a temporary, permanent or specialist role,  we’d love to help. We work with employers of all sizes and have deep experience across HR, Marketing, Finance and Administration.

Explore our Recruitment Services or Contact Us to talk through your next hire. Visit the employers page.