Temp, Direct-Hire, Or Contract? What Hiring Model Works Best - Burnett Specialists

Temp, Direct-Hire, or Contract? What Hiring Model Works Best

May 22, 2025 | Employer Advice

Choosing the right hiring model is more important than ever in today’s fast-moving, competitive workforce. Businesses are navigating rapid changes—economic uncertainty, technological advancement, and shifting employee expectations—all while needing to stay flexible and productive. Meanwhile, job seekers are looking for opportunities that match their lifestyles, career goals, and financial needs.

The question for many employers isn’t just who to hire—it’s how to hire. Should you bring on temporary workers to fill immediate gaps? Invest in direct-hires for long-term growth? Leverage contractors for project-specific needs? Each option offers distinct advantages, but the best choice depends on your business goals, your industry, and the current market dynamics.

Here’s what employers and candidates need to know about temp, direct-hire, and contract employment models in 2025—and how to determine the best fit for today’s workforce.

Understanding the Three Main Hiring Models

Temporary (Temp) Staffing
Temporary workers are employed for a defined period, often to cover seasonal demands, employee leave, or special projects. Temp placements are usually made through staffing agencies and can range from a few days to several months.

Direct-Hire
Direct-hire positions are permanent, full-time roles where the candidate is recruited and placed directly with the employer. Staffing agencies often assist in sourcing and vetting candidates, but the employee joins the client company’s payroll from day one.

Contract Staffing
Contractors are hired for specific projects or time frames, often for specialized roles. They can work independently or through staffing firms and, while similar to temps in their limited duration, contractors typically offer more advanced expertise or niche skills.

When to Use Each Hiring Model

Temporary Staffing: Ideal for Flexibility and Speed
When you need to scale up quickly or address short-term needs, temp workers offer a smart solution. Temporary staffing is particularly effective for:

  • Seasonal work surges (e.g., retail holidays, tax season)

  • Employee absences (e.g., maternity leave, sabbaticals)

  • Immediate help without long-term commitment

  • Trial periods to assess candidates before offering full-time roles

Temporary workers allow businesses to stay productive without the long-term costs associated with full-time hires, including benefits, severance, or long onboarding timelines.

Direct-Hire: Best for Stability and Long-Term Growth
Direct-hires are ideal when you need to build lasting relationships, foster company loyalty, and invest in the future of your organization. Direct hiring is the best choice for:

  • Strategic leadership or management roles

  • Core team positions that require deep institutional knowledge

  • Roles where culture fit and retention are priorities

  • Companies planning for long-term expansion or succession

Direct-hires tend to feel more secure and invested, contributing to higher engagement, stronger performance, and lower turnover rates.

Contract Staffing: Perfect for Specialized or Project-Based Needs
Contractors bring targeted skills to specific projects without the costs and commitments associated with permanent employment. Contract staffing is most effective for:

  • IT and tech implementations (e.g., software rollouts, cybersecurity upgrades)

  • Marketing campaigns, rebranding, or creative projects

  • Engineering, construction, or manufacturing initiatives with set deadlines

  • Startups or small businesses needing niche expertise on a budget

Contractors offer flexibility and fast impact, allowing companies to bring in experts as needed without permanent overhead.

Trends Influencing Hiring Models in 2025

Several trends are shaping how employers and candidates view temp, contract, and direct-hire opportunities:

  • Workforce Flexibility: Many professionals now prefer contract or temp roles that offer freedom and control over their schedules.

  • Specialized Talent Gaps: Hard-to-find skillsets (especially in IT, healthcare, and skilled trades) make contract staffing essential for project success.

  • Cost Management: Temp and contract models allow companies to access needed talent without the full costs associated with traditional hiring.

  • Remote Work Expansion: Remote and hybrid models are making it easier to engage contractors or temps from broader geographical areas.

  • Career Experimentation: More workers are exploring temp or contract roles to pivot careers, gain new skills, or find the right cultural fit before committing long-term.

For employers, offering different engagement models can be a competitive advantage, allowing them to meet candidates where they are while addressing specific business needs.

How to Choose the Right Hiring Model

If you’re deciding which path to take for a particular role, consider these factors:

  • Urgency: How quickly do you need someone in the role? Temps and contractors can often start immediately.

  • Role Complexity: Does the job require institutional knowledge and a long onboarding ramp-up? If so, direct-hire may be the better route.

  • Duration: Is the need temporary, seasonal, or project-based? Contract and temp workers are ideal for shorter duration projects.

  • Skill Level: Are you seeking specialized expertise for a defined project? Contractors can provide targeted solutions.

  • Budget: Consider the total cost of hiring, including salary, benefits, training, and turnover risks. Different models have different financial implications.

  • Future Planning: Are you building a leadership pipeline or a stable core team? Direct-hires offer the stability needed for future growth.

Often, the best approach involves using a combination of hiring models depending on the department, project, and strategic goals.

Building a Flexible Workforce for 2025 and Beyond

The future of hiring isn’t rigid—it’s responsive. Organizations that adapt to workforce trends by embracing flexible hiring models will not only meet today’s talent demands but also build resilient, agile teams ready for whatever comes next.

Whether you need temp staff to boost productivity during a busy season, a direct-hire to drive long-term growth, or a contractor to lead a critical project, the key is understanding your needs and matching them with the right hiring strategy.

At Burnett Specialists, we offer comprehensive staffing solutions tailored to today’s dynamic market. Whether you’re looking for temporary support, direct-hire expertise, or specialized contractors, we’re here to help you build the workforce you need to thrive.

Visit Burnett Specialists to learn more about flexible hiring options and how we can help you meet your staffing goals—today and into the future.

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