When contractors call Bravo for the first time, one of the first questions we ask is: “Do you need someone now for a specific project, or are you building your permanent crew?” The answer determines everything — model, timeline, and total cost.
Here’s how temp-to-hire and direct placement actually work, what each costs, and which is the right call for your situation.
What Temp-to-Hire Actually Means
Temp-to-hire places a tradesperson with you on a temporary basis — typically 60 to 90 days — with the option to bring them on permanently at the end of the period. During the temp period, the staffing agency handles payroll, taxes, workers’ comp, and benefits.
Best for:
- Project-based needs with a possibility of permanent work
- Employers who want to evaluate a candidate before committing
- Companies that need someone immediately but can’t yet justify a permanent headcount addition
The cost structure: You pay an hourly bill rate (typically the worker’s pay plus a markup covering burden costs and agency fee). If you hire them permanently at the end of the temp period, a conversion fee applies — or it converts automatically if the contract includes a built-in conversion clause.
What Direct Placement (Direct Hire) Means
Direct placement means Bravo recruits, screens, and presents a candidate for a permanent role on your payroll from day one. You pay a one-time placement fee (typically a percentage of the candidate’s first-year salary), and the candidate goes directly onto your books.
Best for:
- Core, permanent roles where you know you need someone long-term
- Higher-level positions where evaluating someone for 90 days isn’t practical
- Situations where you want to own the employment relationship from the start
The cost structure: One-time fee, no ongoing markup. Bravo’s 90-day retention guarantee covers you if the placement doesn’t work out — we replace at no additional cost.
How to Decide: Four Questions to Ask
1. Is this a permanent or project-based need? If the role will exist 12 months from now, direct placement is almost always more cost-effective. If it’s tied to a specific project or uncertain headcount, temp-to-hire gives you flexibility.
2. How fast do you need someone? Both models can move quickly — Bravo typically presents candidates within 48 hours. But temp-to-hire can start faster because the burden of onboarding onto your payroll comes later.
3. Do you need to evaluate before committing? If you’ve been burned by hires who looked good on paper and underperformed on the job, temp-to-hire gives you a trial window. You see the work, the attitude, and the crew fit before you commit.
4. What’s your risk tolerance? Direct placement carries more upfront cost but less ongoing overhead. Temp-to-hire spreads the cost but adds markup burden for the duration. Run the math on a 12-month horizon — often direct placement costs less over time.
The Hybrid Reality: Most Mid-Market Contractors Use Both
In practice, most of the contractors Bravo works with use temp-to-hire for project-driven surges and direct placement for their core crew. The right model isn’t fixed — it shifts with your pipeline and headcount situation.
Not sure which model fits your current need? Schedule a free 15-minute call with Bravo and we’ll tell you exactly what we’d recommend — and what it would realistically cost.