Definition
In a direct hire (or permanent placement), a staffing agency finds and screens candidates, and the business hires the chosen person directly as its own employee from the first day. The business runs payroll, benefits and taxes. The agency is paid a one-time placement fee instead of an hourly bill rate, and many agencies offer a replacement period if the hire does not work out. Direct hire suits roles you know you need long term, such as a kitchen manager or warehouse lead.
This definition is general information, not legal, tax or financial advice. Rules vary by state and change over time.