Pros & Cons of Craft Staffing and Direct Hire in the Construction Industry; How KODIAK Solves On-Demand Staffing Solutions

Craft Staffing vs. Direct Hiring: Which Is Right for My Company?

Construction companies searching for craft professionals for their next project have two options. However, choosing between craft staffing vs direct hires requires strategic thinking. Project managers and business owners must consider their company’s labor needs, skill requirements, and long-term goals. KODIAK Labor Solutions offers craft staffing solutions nationwide. Rooted in mechanical contracting, we have helped support MEP, AEC, mission-critical, and numerous other highly specialized construction sectors with our craft staffing solutions. We understand that the success of your project relies on the workforce. Learn more about the process, benefits, and disadvantages of both direct hiring and craft staffing to see which one is right for your project.

What Is Direct Hiring?

Direct hiring is the traditional form of recruitment, in which the hiring company is responsible for every aspect of the employee’s tenure. Recruitment, onboarding, compensation, benefits, and eventual retirement or termination are handled by the hiring company. In the construction industry, your direct hires are typically core members of your team who define company culture and remain employed from project to project, regardless of workload.

What’s Craft Staffing?

Many commercial, industrial, and mission-critical construction companies choose craft staffing to augment their permanent workforce. Partnering with a specialized craft staffing agency allows you to increase your workforce for a specific project or construction phase. The craft professionals mobilized to your job site are employed by the staffing agency and are responsible for handling HR and administrative responsibilities. Craft staffing agencies will charge a bill rate based on the labor provided. This model is designed for flexibility, enabling construction companies to scale their workforce as needed for each project.

What’s the Direct Hiring Process for Construction Companies?

Many construction companies opt for direct hires to fill essential roles within their workforce, including supervisors, superintendents, and long-term journeymen. These positions often help define the company culture while being leaders on the worksite. Direct hiring is a significant investment in time and resources, and it’s crucial you get it right:

• Identify Need – Before recruitment for the position can begin, you need to define the position’s scope, including the necessary skills, the number of roles to fill, and the allocated budget.
• Job Posting – Once the need is identified, you must find the talent. Writing job descriptions and then posting them on job boards and social media will help attract the necessary candidates.
• Reviewing Candidates – When applications come in, they need to be reviewed for relevant experience. Then, certifications and qualifications need to be verified.
• Interview – Interviewing is a multi-step process that typically includes a phone interview and then an in-person interview to ensure the construction professional has the necessary skills. You may also consider practical skills tests to ensure they can perform the essential work required for the position.
• Hiring – Once the candidate has been selected, your HR team needs to negotiate the pay, run a background check, set up payroll, and enroll them in benefits before they can begin working on your project.

What Are the Pros of Direct Hiring?

Despite the effort involved in the direct hiring process, there are numerous advantages that make it a critical recruitment option for fulfilling essential roles within your workforce. Learn more about how direct hiring can help support your business:

• Brand Building – Maintaining a consistent team that represents your company displays consistency and builds your brand.
• Retention Potential – Permanent employees often feel a stronger sense of ownership over their work and the company’s success. If treated well, they are more likely to stay for years, reducing turnover in your core crew.
• Tailored Selection Process – You maintain 100% control over the hiring process, allowing you to tailor recruitment specifically to fulfill your needs.
• Better Cultural Fit – Direct-hire employees learn “your way” of doing things based on time spent on the job site, reducing the ramp-up between projects.

What Are the Cons of Direct Hiring?

While direct hiring helps build stability within your workforce, the rigid process can also introduce significant risks. When maintaining a safe and efficient job site is critical for your success, it’s essential to consider the potential disadvantages of direct hires:

• Slow Hiring Process – Finding the right person takes time. However, with looming deadlines, it’s essential to fill critical positions immediately to prevent project delays.
• Higher Costs – The cost associated with hiring goes far beyond just the salary. Companies need to consider the benefits, payroll taxes, workers’ compensation, and recruitment costs to understand the actual cost of direct hiring.
• Risk of a Bad Hire – Spending weeks to hire a construction professional is challenging enough. If they turn out to be unreliable or lack the required skills, you have to start the process all over again, wasting weeks or months.
• Talent Availability – You are limited to the talent pool in the immediate geographical area, preventing you from hiring the best talent available.

What’s KODIAK’s Craft Staffing Process?

At KODIAK Labor Solutions, we approach staffing differently. Our process is informed by our roots in the industry, which provide us with unique insight into the needs of our partners. We do more than just move resumes. KODIAK Labor Solutions mobilizes workforces to bring quality, precision, and professionalism to each job site. Learn more:

• Initial Consultation – The process begins with a discussion about your project scope, timeline, and specific skill requirements.
• Sourcing – We tap into our nationwide network of craft professionals. Because we focus on specialized sectors like mission-critical and industrial construction, we have access to a formidable workforce.
• Screening – We thoroughly vet our candidates by verifying their skills and references to ensure they align with your job site’s needs.
• Placement – Our workforce is made up of 75% traveling crafts. So, whether you’re located across the state or across the country, you can rely on us for fast and accurate workforce mobilization.
• Continuous Support – We maintain communication with you throughout the entire process. For larger projects, we also mobilize on-site support staff to ensure performance and safety standards are met.

What Are the Pros of Craft Staffing?

Many construction companies that partner with KODIAK Labor Solutions benefit from the agility our professional craft staffing solutions provide, allowing them to confidently bid on larger projects and meet tighter deadlines. Learn more about the benefits of our craft staffing solutions:

• Accurate Hiring – It’s not just about filling positions fast. We aim to provide you with qualified workers ready to handle your heavy-industrial, AEC, MEP, and mission-critical construction projects.
• Accessibility – We aren’t limited by geography. We can mobilize skilled tradespeople from other regions to staff projects in remote locations or during labor shortages.
• Scalability – Ramp up during critical phases or to achieve aggressive deadlines and ramp down as it nears completion.
• Cost Control – Craft staffing allows you to have greater control over your labor costs by scaling your workforce according to your available budget. You also avoid costs associated with benefits, HR, and recruitment advertising.
• Skills Alignment – We have a massive database and extensive employee network, enabling us to find the craft professional with the exact skills, experience, or certifications required for your job site.
• Compliance and Safety – KODIAK Labor Solutions’ craft professionals are safety-focused. All KODIAK employees are OSHA-10 certified and will follow your job site safety protocols.

What Are the Cons of Craft Staffing?

KODIAK Labor Solutions actively addresses common problems contractors encounter when selecting craft staffing to fill roles in their labor force.

• Employee Loyalty Concerns – We treat our craft professionals with respect, offer competitive pay, and prioritize their safety. As a part of an elite workforce, they take pride in their skills and the quality of their work.
• Misalignment – We are built on contractor DNA. Our team understands the unique labor demands of heavy commercial and industrial job sites, allowing us to mobilize a workforce that aligns with your needs.

Choosing Direct Hire vs a Staffing Agency​ for Craft Professionals

Many companies rely on both direct hiring and contract staffing to fill critical positions in their workforce. But knowing which to use is essential for maintaining your business goals. Learn more about which option may be right for you based on your needs and timeline:

When to Choose Direct Hire

• You are hiring for a leadership role, such as a Superintendent or Project Manager.
• You have a steady, forecasted workflow for the next 12-24 months that justifies a permanent headcount.
• You are looking to build the “core” foundation of your company culture.

When to Choose Craft Staffing

• You have won a large project that exceeds your current workforce capacity.
• The project is located in an area where there is no local labor presence.
• You need highly specialized skills for a short duration.
• You want to avoid the administrative burden and long-term liability of permanent hires during an uncertain economic cycle.

Trust KODIAK for Staffing for your Project

KODIAK Labor Solutions partners with contractors across various industries, including heavy commercial, industrial, MEP, and mission-critical, to help them achieve project milestones while removing the common barriers associated with hiring. By partnering with us for craft staffing solutions, you can bid on larger-scale projects knowing you’ll have the experienced and industrial-proven crafts ready to mobilize to your job site. Ready to find the skilled workforce your project needs? Contact KODIAK Labor Solutions today to get started.