Today’s blogger is Judy Collins with Evergreen Contract Resources, which becomes the employer of record with complete back office services. Judy helps recruiters start and expand their temporary and contract placements throughout the US. Evergreen Contract Resources is an NPAworldwide Endorsed Program.
Natural, and man-made, disasters can strike at any time. We know from the Boy Scouts’ motto that we should “Be Prepared.” The current crisis brought about by the COVID-19 virus demonstrates the wisdom of this advice. Sadly, we now realize that our preparedness for this biological disaster was lacking and we find ourselves in reaction mode, struggling to keep our businesses and daily lives going in the face of ever-mounting upsets and challenges. We must stay calm and carry on.
Businesses will strive to operate in the face of these challenges. With revenues down they will face serious cash flow problems and the very survival of many businesses may be jeopardized. Cost cutting is likely to be brutal. Ramifications of the expected paring down may include reduction in direct hire staff through layoffs, furloughs, or perhaps a sharp reduction in hours worked. Where possible many workers may be asked to work from home to help maintain the “social distancing” mandated by health authorities.
Don’t Panic. Americans are fighters! We can expect our business owners and entrepreneurs to use their ingenuity to stay in business if humanly possible. And people want and need to work. To reduce their costs and minimize their risks many businesses may re-hire laid off workers on a contract basis until the economy fully recovers. Use of contract workers will allow businesses to adjust quickly to the present situation. Overall labor costs and benefits burdens can be reduced and the risk of maintaining direct hire staff in the face of uncertainty minimized. This has serious implications for the recruiting industry’s direct hire placement fees and may lead to a significant spike in the use of contract workers.
What to do? As a recruiter, you can be prepared for the scenario which is likely unfolding before our very eyes. You can respond in a manner that ensures continuity of service to your clients in the face of calamity. Letting your clients know that you have a thought-out means of helping them ride out or recover from the present situation will increase their confidence in your ability to serve their needs. Partnering with a back-office provider can equip you with the ability to fill your client’s labor needs with contract workers. Get set up now so that you can move swiftly and stay ahead of the crowd. As the economy improves and confidence rises, these contract workers may possibly be hired direct, in which case you can earn a conversion fee.
Prepare yourself now by having an agreement in place which includes temp and contract as well as temp-to-hire options as a supplement to your direct hire offerings. With a back-office provider such as Evergreen, you can be ready to provide these services immediately…if you are set up in advance.
We are here to help the nation weather this crisis. Call Evergreen Contract Resources today and we will set you up. No cost. No obligation. Use us when you need us, so you DON’T PANIC…WITH TEMP AND CONTRACT PLACEMENTS!