Direct Placement vs. Temp vs. Contract (Temp) to Hire – The Benefits of Each Within The Packaging Industry

Direct Placement vs. Temp vs. Contract (Temp) to Hire – The Benefits of Each Within The Packaging Industry

Every company, especially one that has grown from a medium to large business, requires more than one type of position to keep the ball rolling. Different types of employment are necessary for a profitable setup. Firms operating in the packaging industry are no different.

There are four main types of employment:

  • Temp
  • Temp-to-Hire
  • Direct Hire
  • Contract-to-Hire

A recruitment and staffing agency like The Arête Group makes it easier for firms in , Michigan, New York and other major cities in the US, to find the right candidates to fill the vacancies quickly. Schedule a free consultation with our experts to learn more about our staffing solutions.

To understand the benefits of each position, it is essential to get insight into them. Let’s have a look at their distinctive features.

Direct Placement:

A direct placement or direct hire employee is hired directly by a company on a permanent or long-term basis. A direct placement employee has greater job stability. They are on the company’s payroll and are entitled to all the firm’s fringe benefits.

Direct placement is a long-term commitment for both the firm and the employee. This type of position is generally one that costs the company more upfront, however long-term, it is exponentially more cost effective than other main types of employment. Direct Hires are typically more loyal to the company and train to fit in perfectly within an environment.


Temps or temporary employees associate with a company on a short-term basis, depending on the need for labor at that specific time. Companies get to hire people for a while without adding them to their payroll or offering them any fringe benefits. The staffing agency, employee and employer all agree on a specific date or deadline until when the job would last.

This position is particularly beneficial for firms as they can get extra help when more work is rolling in without paying for that seasonal help year-round. Temp jobs are sometimes restricted to positions that do not require much training, nor require workers to fit into the company culture. The company is just overseeing them.

Contract (Temp) to Hire:

Some might argue that Contract-to-Hire (C2H) and Temp-to-Hire are two similar yet separate categories. Temp-to-Hire is a form of employment that lasts six months or more. Such employees are not on the company’s payroll. However, if the firm is impressed by the performance of the Temp-to-Hire employee, they can offer them a permanent position.

Temp-to-Hire professionals are mostly employed to fill in for a need in which they aren’t sure if the person would be a long-term fit and gives the company an opportunity to evaluate skill sets before bringing said employee on full-time.  Some of our clients call this “try before you buy”. This position is the perfect opportunity for a firm that wants to hire a candidate but is unsure whether they can fit in or deliver the required work. It’s like a trial run for companies.

A Contract-to-Hire employee works for a company for a predefined amount of time or until a project lasts. A company can extend the duration of employment, depending on the need and work. Like the Temp-to-Hire, this position also is a temporary fix for companies when they urgently need a vacancy filled or need someone to fill in for a while.

Packaging firms mostly hire direct employees. However, depending on workload and other factors, they can ask staffing agencies like The Arête Group to find temporary employees in the competitive job market of Michigan, New York and many other states across the country. Click here to book a free staffing consultation.