Temporary, temp-to-perm, and direct hire are the three standard staffing arrangements — and choosing the right one has a real effect on cost, flexibility, and retention. Here is how to match the model to your situation.
Temporary staffing
The agency employs the worker and handles payroll, insurance, and WSIB; you pay an hourly rate for productive hours. Best for: seasonal peaks, coverage for absences, short projects, and any headcount you expect to release. The premium over a direct wage buys you speed, zero payroll administration, and the ability to scale down without severance exposure.
Temp-to-perm
The worker starts on the agency's payroll, and after an agreed evaluation period — commonly three to six months — you convert them to your own payroll, usually with a reduced or waived conversion fee. Best for: roles where fit matters and turnover has burned you before. You evaluate real on-the-job performance before committing, and the worker gets the same trial in reverse.
Direct hire
The agency recruits and screens; the worker joins your payroll from day one, and you pay a one-time placement fee. Best for: permanent, skilled, or supervisory roles — licensed trades, lead hands, coordinators — where you want long-term ownership of the relationship and the strongest candidates expect permanency.
A simple rule of thumb
- Demand is uncertain or seasonal → temporary.
- Demand is steady but fit is the risk → temp-to-perm.
- The role is permanent and skilled → direct hire.
Most of our clients run a blend: a permanent core built through direct hire and conversions, flexed with temporary workers through peaks. There is no fee to talk it through — we will quote all three models against your actual roles so you can compare real numbers.