Benefits of Direct Hiring: Tailor-fit Sourcing for BPOs

In today’s job market, individuals are becoming more particular about the roles they pursue. They seek job stability and the chance to advance within a company. This increased selectiveness among job seekers poses a unique challenge for Business Process Outsourcing (BPO) firms. When a BPO client decides to terminate contracts, BPO employees often find themselves in a state of job uncertainty, referred to as floating status.

While this situation doesn’t apply to all BPOs in the Philippines, it can have a demoralizing effect on BPO workers and deter potential job applicants from considering employment with BPO companies.


Challenges in BPO Recruitment

Over the past years, the BPO sector in the country has been wrestling with a surge in attrition rates and a shortage of skilled talent. According to Jack Madrid, the President and CEO of the IT Business Process Association of the Philippines (IBPAP), attrition rates within the country’s Information Technology and Business Process Management (IT-BPM) industry have shown a consistent upward trend, averaging 30 to 40 percent. This marks a considerable increase from the figures reported in 2021, posing a formidable obstacle to the industry’s potential for growth and long-term viability.


Direct Hiring: Recruitment that Ensures Retention

In response to these challenges, BPO companies need to ensure job stability and growth prospects for their employees. For recruiters seeking effective solutions, direct hiring, also referred to as direct placement, emerges as a strategic approach worth exploring. This method involves offering jobs and onboarding employees directly as part of the organization, instead of being subcontracted under a separate agency. It means that talent recruited and hired are actual employees, complete with appropriate benefits and contract agreements.

Recruiters can leverage direct hiring to provide candidates with a pathway to the highest level of job security. By bringing individuals on board as permanent employees, these recruits enter long-term and stable employment arrangements. Moreover, benefit from legal protections guarding them against unjustified terminations.  For recruiters, championing direct hiring not only ensures the well-being of candidates but also elevates workforce morale. The resulting job stability facilitates a more effective long-term team.

Embracing direct hiring offers numerous advantages that transcend traditional recruitment methods. Here are some ways BPO companies can benefit from Direct Hiring:

Expanding Talent Pool

Direct hiring provides access to a wider talent pool that extends beyond the immediate network of a company. Conventional hiring methods frequently confine organizations to familiar connections, whereas direct hiring broadens the horizon to include a more diverse array of potential candidates.

As a result, this expanded reach fosters diversity, enables companies to find specialized skills, and ensures adaptability in a rapidly changing job market. By broadening their horizons through direct hiring, companies can overcome talent shortages, remain competitive, and foster a dynamic and inclusive workforce that drives innovation and success.


Strategic Recruitment for Specialized Cultural Fit and Niche Expertise

Direct hiring streamlines access to pre-screened talent aligned with the company’s culture and values. Collaborating with recruitment partners ensures rigorous assessments, verifying candidates’ skills, mindsets, and values to minimize mismatches in cultural alignment.

At the same time, partnering with a recruitment firm that specializes in BPOs broadens the pool of candidates possessing the precise expertise needed for niche roles. Specialized recruiters excel in identifying candidates not only proficient in technical skills but also well-versed in BPO’s best practices, compliance requirements, and service standards, crucial for success in the field.

Reducing Long-Term Turnover Rates

Direct hiring not only helps BPOs attract and secure the right talent but also contributes to long-term employee retention, which, in turn, mitigates high attrition rates. As employees feel more aligned with the company’s culture, they are more likely to stay, resulting in cost savings and consistent service quality. This makes direct hiring a valuable strategy to enhance the stability and cost-effectiveness of BPO operations while improving the overall work environment for employees.

The talent shortage and attrition issues in the BPO industry are indeed pressing challenges. Direct hiring offers a solution by giving employees a sense of job security, broadening the talent pool, ensuring cultural alignment, and reducing turnover rates. Collaborating with the right recruitment firm allows BPOs to harness the benefits of direct hire and secure a more promising future.


Entrust your direct hiring needs to a strategic partner

Take the first step in optimizing your direct hiring approach today by collaborating with Likha Careers. Whether your recruitment needs involve 15 or 1,500 individuals, Likha Careers offers a tailored and personalized direct hiring solution, delivering valuable support designed to meet your specific requirements. Specializing in direct hire services, our team of experts are equipped to provide your BPO with customized qualification and screening processes, ensuring the best possible fit for your team.

Furthermore, Likha Careers presents a distinctive pricing model that guarantees access to top-tier talent without straining your budget. You can opt to make monthly payments over a 12-month period for talents hired through us who are currently employed. Importantly, you won’t incur charges for talents who are no longer employed, regardless of the circumstances. With a strategic partner like Likha Careers, you’re paying for the outcomes you witness, not the promises you hear.

Learn more about Likha’s specialized direct hire services. Set a meeting with us at

John Doe

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