When hiring truck drivers, motor carriers often have to decide between temp-to-hire and direct hire positions. Each approach has its own advantages and drawbacks that impact operational efficiency, costs, and truck driver retention.
Temp-to-Hire: Pros & Cons
Pros:
- Trial Period for Truck Drivers – Allows motor carriers to evaluate a driver’s performance, reliability, and safety record before making a long term commitment. “Try before you buy”.
- Convenience – eliminate time, cost, and stress of driver hiring and spend more time on your core business.
- Lower Upfront Costs – Staffing agencies often handle initial recruiting, payroll, and benefits, reducing immediate financial commitments.
- Easier Termination Process – If a driver doesn’t meet expectations, the company can transition them out without the legal and financial risks of terminating a full-time employee.
Cons:
- Higher Long-Term Costs – While initial costs may be lower, staffing agencies may have additional fees due to the temporary nature of the initial position, making them more expensive over time.
- Lower Driver Loyalty & Retention – Truck drivers in temp-to-hire roles may feel less committed, increasing turnover rates.
- Limited Control Over Hiring Process – When working with staffing companies, motor carriers may have less control over candidate selection, training, and onboarding. This can also be a for smaller companies that don’t have the staff to interview, qualify, and onboard.
Direct Hire: Pros & Cons
Pros:
- Greater Truck Driver Commitment – Direct hires are more likely to be invested in the company’s long-term success, leading to better retention rates.
- Cost Savings Over Time – Avoids additional hiring fees, making direct hires more cost-effective in the long run.
- Stronger Company Culture Integration – Direct hires can be trained from the start under company policies, safety procedures, and operational standards.
- More Control Over Hiring & Training – Motor carriers manage the entire recruitment process, ensuring they get drivers that align with company needs and values.
Cons:
- Higher Total Costs – Recruiting, onboarding, and training expenses, along with benefits, can be costly.
- Greater Risk in Bad Hires – If a driver turns out to be a poor fit, terminating and replacing them is a more complex and expensive process.
- Longer Hiring Process – Finding the right candidate can take time, potentially leaving routes unfilled if demand is high.
- Less Flexibility – Direct hires commit carriers to long-term employment agreements, making it harder to scale down operations if needed.
Which Option Is Best?
The best approach depends on the motor carrier’s specific needs. Temp-to-hire is useful for carriers looking to test driver performance before committing or those without the internal staff to handle the interviewing and onboarding, while direct hire is more beneficial for companies wanting more control in the hiring process and long-term cost savings. Some carriers use a hybrid approach, leveraging temp-to-hire for peak seasons and direct hiring for core driver teams.