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Are Contract Placements for Me?

by Liz Carey

Despite a volatile economy and many companies putting job orders on hold, some members of our split placement network are reporting that their clients are increasingly asking for contract workers.

Contract placements continue to be a source of growing revenue for many NPAworldwide members who are looking for dependable residual income. Even if your firm doesn’t have a dedicated temp/contract division, you can still fill contract roles. At first glace, you might think the smaller fees are not worth it, compared to a hefty fee on a permanent placement’s yearly salary, but monthly fees for a contract worker can quickly add up, and adds to your bottom line.

Clients have come to rely on recruiters to provide top quality temp/contract candidates that meet their specific needs within a specified time limit – whether due to a merger, a project, or maternity leave. If they really like your candidate, a contract role can also lead to a permanent placement in the long run.

Contract roles are a win-win-win for clients, candidates and recruiters. For your clients, contract staffing is cost-effective: they can eliminate many salary and benefits expenses and do not create a long-term financial commitment. For recruiters, and can also be cost-effective in terms of the amount of time spent on a hire, as the hiring process for contract employees is typically a lot quicker than permanent / direct hires. For candidates, there is often less competition, a higher rate of pay for skilled workers, and flexibility in terms of time off, hours worked, and duties performed.

And contract hiring isn’t just a workaround for full-time hiring freezes due to a down economy because of the pandemic. Contract staffing can help with rapid growth or expansion, or help with large projects or seasonal needs.

Recruiters who want to get into contracting often ask two things:

  1. How would I handle payroll, onboarding, background checks, etc.? – There are third-party organizations out there that provide back-office support and/or can be your Employer of Record. NPAworldwide has several industry partners, such as Evergreen Contract Resources and People 2.0, that can help so you aren’t burdened by back office demands.
  2. How can I get contracting job orders? The best place to start is to simply ask your current direct hire clients if they have contractor needs or a deadline/special project that needs to be completed. Ask if they have a hiring freeze that is prohibiting them from hiring someone. There is always work that needs to be done, and you can offer them a solution because contractors often come from a separate budget, so you can workaround that hiring freeze.

Working contract job orders doesn’t need to be complicated, and in today’s climate, it can provide you with a stable residual income. The return on a small investment of time and energy can be huge.

Tags: temp and contracting | Posted in: Recruiting Resources

One Reply to “Are Contract Placements for Me?”

  • Marcus Ronaldi says:
    1-September-2020 at 12:18 PM

    Contract placements are a great way to expand a staffing business.
    Often it is a quicker turnaround and can even out cash flows!
    Many of the headaches involved with this can be outsourced.

Comments are closed.

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