It depends. Some business could benefit others might not. It all depends upon the type of business and what they do. Each business would need to evaluate their position and decide what would be beneficial. I once worked for a company whose policy was to first employee people through a temp agency. Then, if they worked out and proved to be good workers, they would be hired by the company. For that company, they saw the pros in doing it that way which out weighted the cons. I have also worked for companies that hired directly because for them they saw the pros in doing it that way out weighted the cons. Each to his own.