Constant gaps. Short-term hires. Recurring vacancies. Increased turnover. Poor morale. These are all byproducts of an omnipresent nurse shortage crisis that’s showing no sign of dissipating.
And as such, many healthcare organizations are turning to international staffing partners to help plug gaps and stabilize workforces struggling to cope with all of the above. Yet the stakes are high. And it’s understandable when facilities decide it’s not for them. But for the many organizations that proceed, one of the first obstacles to overcome is determining the difference between ‘staffing agency and direct hire.’ The two are similar in some ways, but totally different in others.
If international nursing is a route your organization plans to use, then a solid understanding of each is a must in lieu of such high-stakes recruitment. In this blog, you’ll learn the difference, costs, and risks involved with each.
Direct hire vs staffing agency: understanding both international healthcare recruitment processes
If the decision is unanimous and your organization is to embark on international recruitment, it’s imperative to use the process that best matches your business model.
Direct hire
Choosing the direct hire route means that you, the organization, hire international nurses directly from agencies based in the nurses' country of origin. Usually, though not always, the direct hire agency will go so far as to source passive talent that matches your vacancies. These same agencies usually screen and vet candidates who meet your criteria, handling resumes, verifying credentials, checking licenses, and, in some cases, even conducting preliminary interviews.
However, for compliance and visas, while the staffing company may handle the requirements and paperwork, you, as the organization, will front the cost as the direct employer.
Staffing agency
A staffing agency, by contrast, means you, the healthcare facility, hire a nurse through a staffing agency. As their client, the staffing agency supplies and employs the talent, taking you out of the administrative set-up.
The contract vs direct hire model sees the staffing agency become the employer of choice. Pay, benefits, visa and compliance, onboarding, housing – every risk - is taken out of your hands and is undertaken by the staffing agency.
Which international nurse recruitment model is right for you?
Hiring the right employee for your organization is essential. Every hire you make is a calculated risk. Will the hire settle? Will the new hire become part of the team? Can the new hire adapt quickly? Will they be accepted?
To help you make an informed choice, we’ll break down the advantages of both below…
Direct hire advantages and benefits
1. Enhanced employee commitment: Employees who come from a direct hire route often feel a stronger sense of commitment to the company that hired them. Why? Because the company has brought permanence and security, and it's this practical confidence that often inspires employees to entrust their long-term futures to the facility.
2. Long-term cost efficiency: There is undoubtedly a higher upfront cost to direct hire. However, this initial output often leads to long-term cost savings as said employees reinvest the loyalty shown to them during the hiring process, resulting in heightened institutional knowledge and lower turnover.
3. Cultural alignment: Direct hire allows organizations to select nurses who match their unique company culture, avoiding problematic hires that could destabilize the current culture. Culture-match hires are also more likely to stay long-term.
4. In-house expertise: As mentioned, direct hire employees are far more likely to look for training and development opportunities to keep their skills up-to-date and relevant. This, in turn, builds up organizational knowledge and expertise.
5. In control: As the hirer, you’re in control. Your organization is matched to the right talent; you take over and make the hire.
6. Payroll and benefits: As the direct employer, nurses sourced via direct hire enter your payroll and have access to global benefits, as per any domestic nurse. This drives high retention and commitment and encourages the nurse to feel at home and part of the team from day one.
Disadvantages
1. Upfront investment: This route can be costly. Everything comes out of your budget and can sometimes exceed tens of thousands per hire.
2. Elongated timelines: Visa processing isn’t a speedy process. It’s time-consuming and can take upwards of 12 to 24 months to complete. It also heavily relies on political whims, changes, and machinations.
3. High exposure: The biggest disadvantage/risk to direct hire is the potential for huge financial loss. Should the nurse leave post early, or the hire doesn’t work out for some other reason, the facility is left entirely with the cost burden.
Staffing agency long-term advantages and benefits
1. Unparalleled support: The support offered by staffing agencies is unmatched.
2. Access to global talent: The staffing agency will often have established global talent pipelines ready to deploy.
3. Employment and compliance: The staffing agency is the legal employer of the nurses you wish to hire, with all responsibility for visas, compliance, credentialing, and finally payroll and benefits resting with them.
4. Flexibility: Since most staffing agencies have stocked and varied pipelines, many can meet your vacancy requirements and can meet them quickly, often within 4 – 8 months.
5. Lower risk: As their client, the staffing agency absorbs the greater risk.
6. Resilience: Should a placement fail to work out, or a placement end, the staffing agency can redeploy and resupply without breaking legal status.
7. Integration: Integration can be more difficult for nurses sourced via staffing agencies since they’re not permanent staff. However, many staffing agencies will look to mitigate this risk with extended onboarding and ongoing support throughout the life of the contract, both for the nurse and healthcare client.
How can Conexus offer the ideal staffing solution?
At Conexus, we’ve been supplying healthcare organizations with exemplary international nurses for nearly 15 years. And of all the international nurses we place in healthcare organizations, 85% convert to permanent staff, which gives us unique insight into the long-term impact our nurses bring to the organizations where they work and to the patients they care for.
We know what an ideal international nurse solution looks like. We know all about the positive impact our nurses bring. We understand the value of their contribution. And we know, because our clients tell us:
‘Conexus has been brilliant. Responsive and supportive, particularly the support and education they offer to their clinicians. The partnership they develop really helps the clinicians settle in and progress, contributing to a positive onboarding experience overall.’
WellSpan Evangelical Community Hospital
Build your sustainable international nursing pipeline today
If you're considering staffing agency vs direct hire to mitigate this ongoing nurse shortage crisis, make sure your organization is well-informed about the pros and cons of each. Both have their advantages. Both differ. However, as an award-winning staffing agency that oversees an incredibly high number of temp-to-perm conversions, we know the value of a stocked and sustainable international nursing pipeline is to our clients.
Thanks to our pipeline, we reduce time-to-fill, we reduce risk, we reduce disruption, and we increase long-term stability.
Direct hires can’t tick each of these boxes. We do.
Are you ready to explore your options?
.png?width=800&name=BLOG_%20Featured%20Images%20(2).png)
.png?width=800&name=BLOG_%20Featured%20Images%20(1).png)