A direct hire is when the hiring organization directly offers the job to a candidate without the input of a third party. When recruiting for permanent positions within the company, direct hire is the most common technique used.
On the other hand, when filling contract or temporary roles, businesses may use an external recruitment company to select the candidate and hire them. The person might be employed by a recruitment company but working for your business. A direct hire is the opposite of that. A recruitment company may still be used, but the new employee works directly for your company.