There's no one-size-fits-all talent strategy.
Finding and keeping talent is the #1 challenge for manufacturers today. Between shifting demand, growing skill gaps, and labor shortages – on top of unrelenting production deadlines – it's a lot to juggle. Having the right staffing and recruiting model – and the right partner – is the key to balancing it all.
With options from direct hire, temporary staffing, RPO, VOP, and outsourced project staffing, it’s not always clear which approach will deliver the best results. Choosing the wrong approach can lead to:
- Increased turnover & costs
- Production delays & missed deadlines
- Damaged trust & reputation with customers
- Missed opportunities to grow or scale effectively
Let’s explore the pros and cons of the most common models for manufacturers.
Direct Hire Staffing
What is it? Employers hire directly through their own human resources team or through an agency on a contingency basis.
| Pros | Cons |
| Full control over hiring process and decisions | Slower hiring cycle |
|
Employees typically more committed to long-term employment |
Higher upfront recruiting costs |
| No markup fees after hire |
Increased risk if wrong hire is made |
Best for: Filling permanent skilled hourly or professional leadership roles.
Temporary Staffing
What is it? An agency supplies temporary workers who are employed by the agency but work at your site.
| Pros | Cons |
|
Flexibility to scale workforce up or down quickly |
Limited ability to build long-term culture and team cohesion |
| No long-term employment commitment |
Engagement and loyalty may be lower |
| Agency handles payroll, benefits, and compliance | Supervisory effort still required from internal team |
Best for: Seasonal ramp-ups, covering absenteeism, or project-based work.
RPO (Recruitment Process Outsourcing)
What is it? A partner manages all or part of your recruiting process (job postings, sourcing, screening, offers).
| Pros | Cons |
| Access to larger candidate pool |
Longer-term contract commitment required |
|
Scales recruiting capacity without adding internal staff |
Initial setup takes time |
| Consistent, branded candidate experience |
You still handle onboarding and management post-hire |
Best for: Ongoing hiring for multiple plants or locations; building talent pipelines.
VOP (Vendor on Premise)
What is it? An on-site staffing partner that manages your contingent workforce directly at your plant.
| Pros | Cons |
|
Dedicated on-site support for hiring and managing temps |
On-site VOP fees apply |
|
Improves fill rates and retention of temporary staff |
Works best for larger volumes of contingent workers |
| Frees up internal HR resources | Requires close collaboration with plant leadership |
Best for: Plants using larger volumes of temporary workers or managing complex shift needs.
Outsourced Project Staffing
What is it? A partner manages an entire department, project, or function (e.g. warehouse, packaging line) under a managed services contract.
| Pros | Cons |
| Full accountability and risk transfer to partner | Less direct control over day-to-day workers |
| Simplified cost structure (pay for output, not hours) | Requires trust in the partner’s quality standards |
| Frees internal resources for core activities | Initial transition can be disruptive if not managed well |
Best for: Non-core processes, greenfield startups, or overflow production where internal capacity is limited.
Staffing Model Comparison
| Model | Flexibility | Control | Cost Predictability | Speed to Scale | Best Use Case |
|---|---|---|---|---|---|
| Direct Hire | Low | High | High | Slow | Skilled, professional roles |
| Temporary Staffing | High | Medium | Medium | Fast | Fluctuating demand |
| Recruitment Process Outsourcing (RPO) | Medium | High | Medium | Medium | High-volume hiring |
| Vendor On Premise (VOP) | High | High | Medium | Fast | Large contingent workforce |
| Outsourced Project Staffing | Very High | Low | High | Fast | Non-core projects |
The most successful staffing strategies match the right model to the right need – there's no one-size-fits-all solution. With so many options to choose from, having a trusted partner to design a clear, results-driven approach makes all the difference. HTI offers:
- Staffing strategy assessments
- Flexible hiring strategies
- RPO and VOP options
- Project-based solutions
Every day without the right staffing and recruiting model costs time and money. Don't wait – contact us today.
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