Healthcare staffing strategies are constantly evolving. In today’s post-pandemic world, staffing shortages and fluctuating patient volumes are forcing many health systems to rethink their hiring strategies. While contingent (or temporary) staffing has long been a go-to solution for filling short-term gaps, permanent placement staffing is gaining traction as a sustainable long-term approach. But what exactly is permanent placement, how does it work, and how can it benefit your healthcare organization?
What is permanent placement?
Permanent placement, also known as direct placement, refers to the hiring of healthcare professionals into full-time, long-term positions directly within a healthcare facility. Using a permanent placement staffing model, staffing partners act as recruiters rather than employers. They identify, screen, and refer qualified candidates to the health system, which then hires them as permanent employees.
Unlike contingent staffing models, which utilize candidates like travel nurses, locum tenens physicians, and per diem workers, professionals placed through permanent staffing are not employed by the staffing agency. Instead, they become integral parts of the health system, typically receiving the same salary, benefits, and training as other full-time staff.
How does permanent placement work?
The permanent placement staffing process typically involves several key steps:
1. Needs assessment and role definition
The healthcare facility partners with a staffing organization to define their workforce needs and role requirements, such as experience, certifications, and desired start date. The staffing partner usually also offers advice on market compensation and recruitment strategies.
2. Candidate sourcing and screening
Using their networks, databases, and marketing tools, the staffing partner sources candidates from across the country (or internationally, in some cases). They vet applicants through interviews, license verifications, background checks, and reference calls before presenting the top candidates to the employer.
3. Interview and selection
The health system reviews the shortlisted candidates, conducts interviews (virtually or in-person), and selects the right candidate to fill the role. From there, the staffing organization continues with onboarding, compliance and credentialing, and start-date planning.
4. Fee structure and guarantee period
Permanent placement firms typically charge a one-time fee, often a percentage of the candidate’s first-year salary. Many contracts include a "guarantee period" (e.g., 60–90 days), during which a replacement will be provided at no additional cost if the candidate resigns or is terminated.
Permanent placement differs substantially from contingent staffing, in which the staffing partner employs the clinician, handles payroll, benefits, and often housing and travel, while charging the facility a higher hourly rate for the duration of the assignment.
However, permanent placement and contingent staffing are not mutually exclusive. In fact, many health systems use a blended approach: contingent staff help maintain coverage while permanent positions are recruited, especially in high-need departments or remote locations.
If you’re looking to drive cost savings while strengthening your employee base, Prolink’s permanent solutions have you covered. From direct placement to integrated recruiting, we’ll craft a strategy that suits your health system’s needs. Learn more here.
Pros of permanent placement staffing
Long-term workforce stability
Hiring permanent staff fosters continuity of care and enhances team cohesion. This is particularly valuable in environments like primary care, surgical teams, or behavioral health, where ongoing patient-provider relationships improve outcomes.
Cost-effectiveness over time
Although there is an upfront placement fee, permanent hires are often more economical than long-term use of travel or locum providers. Hourly rates for contingent workers can be 1.5–2x higher than a salaried equivalent, especially during peak demand or in rural areas.
Improved organizational culture
Permanent staff are more likely to engage in professional development, participate in quality initiatives, and align with your organization’s mission and values. They bring a sense of ownership and cultural inclusion that’s hard to replicate with contingent staff.
Reduced turnover
Candidates placed through a permanent placement solution are typically well-vetted for cultural fit and long-term goals. This reduces the risk of early attrition and associated costs like repeated onboarding or training.
Expanded reach and expertise
A staffing partner specializing in permanent placement can pull from a broad candidate network, including passive job seekers who may not be actively applying to job boards. Their recruitment expertise allows access to a more targeted, qualified talent pool.
Cons of permanent placement staffing
Higher upfront costs
The direct placement fee, often 15–25% of the candidate’s annual salary, can be a significant initial investment. Budget constraints may make this difficult for smaller facilities or nonprofits.
Longer time-to-fill
Sourcing and hiring for a permanent role typically take longer than filling a temporary gap. A travel nurse can often start within a week, while a permanent hire can require several weeks or more to fully onboard.
Market competition
With ongoing shortages in key specialties—like rural primary care, labor and delivery, or emergency medicine, recruiting high-quality permanent staff is highly competitive. Facilities may need to offer sign-on bonuses, relocation packages, or flexible scheduling to stand out. A good workforce partner will get to know a health system’s strengths and weaknesses and craft a recruiting strategy that plays to its unique selling points.
Is permanent placement staffing right for your organization?
If your health system is seeking to build a more sustainable workforce, reduce turnover, and improve continuity of care, permanent placement may be the right strategy. It is especially well-suited for:
- Rural or underserved areas aiming to attract long-term talent
- Health systems expanding services or opening new facilities
- Organizations struggling with turnover or burnout among core staff
- Facilities focused on improving patient experience and outcomes through consistent provider relationships
On the other hand, if your staffing needs are seasonal, unpredictable, or constrained by budget in the short term, contingent staffing may still play a critical role.
Ultimately, the decision depends on your organization’s long-term goals, financial flexibility, and workforce strategy. By understanding the strengths and limitations of each staffing model, you can build a more resilient, effective, and patient-centered health system. When implemented strategically, permanent placement can lead to higher retention, lower long-term costs, and a more engaged clinical workforce. As you assess your current and future staffing needs, consider whether permanent placement could be the key to unlocking greater stability and success in your health system.
