Like a pendulum, when there is a upswing, there must also be a downswing. There has been a lot of talk about an upcoming recession after such a strong economic bounce-back from the pandemic over the last couple years. With a possible recession looming, companies tend to tighten their belts and put hiring freezes in place. The work still needs to be done, and temp or contract workers are a great solution. Flexible hiring like contract recruiting can help circumvent hiring restrictions and help a business survive and thrive.
Some members of our split placement network report that clients are increasingly turning to them for contract recruiting. According to this survey, 16 million temporary workers are hired every year.
Companies have long used temporary or contract workers to help address workforce challenges. The demand for contract recruiting is now greater than ever. The healthcare industry experienced a blow with the pandemic pushing overworked healthcare professionals to their limit, fueling turnover. Staffing shortages have led to the continuous use of contract health professionals to fill much needed clinical positions.
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 or contract recruiting 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. And the consistent income can be a boon when there is something like a hiring freeze with one of your major clients.
Contract recruiting is 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, it is cost-effective because the hiring process for contract employees is typically quicker than permanent / direct hires. And 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.
Recruiters who want to get into contracting often ask two things:
- 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 that take the burden of back office demands. Some NPA partners that are contract staffing firms take on the duty of being the employer of record.
- 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 completion. Ask if they have a hiring freeze that is prohibiting them from hiring someone. You can offer them a solution because contractors often come from a separate budget, so you can workaround that hiring freeze.
Contract recruiting is not complicated. In today’s climate, it can provide you with a steady, stable income stream. The return on a small investment of time and energy can be huge.