By Veronica Scrimshaw
Today’s guest blogger is Amy West, senior business development consultant with TFI Resources, a Division of People 2.O, a North American Alliance Partner of NPAworldwide. TFI Resources provides employer of record services for contract placements.
If projections from The Wall Street Journal ring true, recruiters will continue to face an increased demand for contract placements. The WSJ article published February 2, 2017 explains: “Never before have American companies tried so hard to employ so few people. The outsourcing wave that moved apparel-making jobs to China and call-center operations to India is now just as likely to happen inside companies across the U.S. and in almost every industry.” Read the rest of this entry »
By Liz Carey
Temp and contract placements continue to be a source of growing revenue for many members of our split placement network. Even if your firm doesn’t have a dedicated temp division, you can still fill contract roles. While the fee may seem meager compared to a hefty fee on a permanent placement’s yearly salary, the monthly fee for a temp/contract worker adds up, and adds to your bottom line. Read the rest of this entry »
By Veronica Scrimshaw
Today’s guest blogger is Judy Collins from TFI Resources, an NPA Alliance Partner. TFI Resources is a multi-state payroll service providing a full range of services to recruiters in the temporary, contract, and permanent placement industry by providing employer of record service, payroll funding, and payroll processing. Many independent recruiters utilize TFI to expand their business to include temporary and contract placements while mid-size and large staffing firms use TFI to serve as employer of record for temporary and contract placements in states where they are not registered or licensed to do business.
Don’t miss out on a consistent recruiting revenue stream.
According to Barb Bruno, staffing trends show an increase in temp and contract placements. The new federal healthcare reform will impact your business. Many employers will prefer to add temporary and contract positions before hiring additional permanent staff. Baby boomers that are retiring will come back for a temporary assignment or a short term project. By adding temp and contract alternatives to an existing business model, independent recruiters can create a full service option for their existing clients. You can give them an option on how you can help them satisfy their staffing needs. With so much competition, it is all about providing the right option.
An average markup rate for a temp or contract position is usually 50% of the pay rate. This can also depend on your niche market. You can choose to have a lower mark up for a large client or a client that will give you multiple assignments. You can also go higher for those hard-to-fill priority positions. Be sure to include a buy-out clause after 90-120 days. When calculating your conversion fee only look at your profit margin, do not include your total billings. The total invoice amounts include what you are spending on payroll, taxes and insurance. If you outsource your back office, also take out your payroll funding and payroll processing fees. Include language in your placement agreements that the conversion fee will be calculated off of profit for the term of the assignment if your client chooses to hire your candidate within one year of the last day worked.
Temp and contract placements can help keep clients happy while increasing an independent recruiter’s bottom line.