As anyone does when facing something new or unknown, recruiters who do not place contractors have a lot of apprehension when it comes to contract staffing. Once they get started, though, recruiters find that their fears are unfounded. Don’t let fear keep you from enjoying steady income and increased sales. Let us debunk some of the most common fears you may have about contract staffing.
Contract staffing is hard. This is perhaps the most common fear, and it’s related to the administrative and legal issues associated with contracting. No doubt, the back-office tasks and liability can be daunting, but there is a way to avoid those issues. You can outsource the employment of your contractors and all the employment responsibilities to a contract staffing service provider. This allows you to do what you know best – close deals and make placements.
I’ll lose direct hire business. Not only is this fear unfounded, the opposite is actually true. Adding contracting to your business model can actually enhance your direct hire efforts. Why? Because companies are looking for solutions to their staffing challenges, and not all of those challenges are direct hire in nature. If they have a need for a contractor and you’re able to meet that need, they will be more likely to come back to you for their direct-hire job orders, as well. On the flip side, if you turn down contract job orders from your clients, and they use somebody else, you have just opened the door to a competitor.
I won’t make enough to justify the effort. This misconception stems from the fact that, instead of receiving your fee in a big lump sum, you get paid on an hourly basis over the course of the assignment. In truth, this steady income is often enough to cover overhead costs, making direct hire pure profit. It is common for recruiters to maintain 10 active contractors earning them $12 an hour. That calculates out to an additional half a million dollars a year. Do you think that is worth your minimal investment of time?
I won’t be able to find job orders. Nearly every company in every industry is using contractors to a certain extent. Many are even transitioning their workforce models to blended teams that include both direct hires and contractors to gain needed flexibility. Because of this you don’t have to make a major investment in marketing your contract services. All you have to do is inform your current clients that you can provide contract candidates. Companies are much more likely to bring their contract needs to the same recruiter who has been successful in meeting their direct-hire needs.
I won’t be able to find candidates. This is also an old misconception. Candidates are increasingly choosing contract staffing and are actively seeking contract assignments. You won’t know which of the candidates in your database would be willing to work on a contract basis—and which would not—unless you ask them.