Why It’s Important To Have Direct Hire Agreements (DHA) In Place

DHA agreements in recruiting simply define the expected levels of service and the roles and responsibilities of both parties. Service-level agreements have proven to be one of the most effective ways to improve recruiting results, to increase recruiting consistency, and at the same time, to strengthen the relationship between recruiters and hiring managers. DHAs are necessary because under the current system, neither recruiters nor hiring managers control the entire recruiting process, and as a result, there’s a lot of confusion over who was responsible for what. But instead, by working together and jointly deciding “who will do what, when, and how” you will reduce confusion, increase understanding, and at the same time, you clarify everyone’s roles, responsibilities, and expectations.

There are many benefits associated with using DHA agreements in recruiting. They include:

  • DHA’s improve new-hire quality – these agreements have proven they can improve recruiting results but they also have the added advantage of making recruiting processes and results more consistent and predictable. Although no one in recruiting has yet achieved Six Sigma or JD Power-level quality (the business standards), these agreements can dramatically improve the understanding of recruiting and reduce its conflicts, while recruiting results improve. The best agreements should result in measurable improvement in the quality of hire.
  • Define the role of each party – DHAs clarify the roles and responsibilities of all parties involved. Roles that frequently need clarification include interview scheduling, who participates in interviews, reference checking, documentation, and the role of everyone in making referrals. and making it clear who has ownership, can reduce hesitation, as well as duplicate work.
  • Specify the goals of the process – clearly define and prioritize the goals of the overall process in order to ensure that everyone involved knows precisely “what you’re trying to accomplish.”
  • Improved manager satisfaction– when recruiters and hiring managers have deadlines and the responsibility is defined, they do a better job. That results in higher management satisfaction rates with the hiring process.
  • You will dramatically reduce confusion and duplication – being confused about who does what and when can certainly slow down the hiring process and result in the unintended duplication of work. DHAs lead to clarity and agreement on what must be done and who must do it.
  • The agreement process improves the relationship – the process of jointly working together in order to create the DHA agreement by itself helps to improve the relationship between recruiters and hiring managers. The initial negotiation process also helps both parties understand the needs, expectations.

DHA’s have become a standard practice in every part of business. And since recruiting is in reality a service function, it only makes sense for it to follow in the successful footsteps of other business functions.

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