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!

Today’s guest blog is a post from People 2.0, a leading provider of back-office solutions for staffing and recruiting organizations, nationally and globally. They offer a variety of support services, including payrolling, payroll funding, risk management, etc., and serve as a strategic resource in helping you efficiently and profitably place talent. People 2.0 is an NPAworldwide Endorsed Program.

Every business endeavor entails risks, and contract staffing is no exception. When compared with permanent placement, the compliance and liability risks of contract staffing can be daunting for a firm without a comprehensive resource for dealing with these risks. But with the right resources and advance planning, these risks shouldn’t keep a staffing or recruiting firm owner from taking advantage of the revenue potential of contract staffing. Primary areas of risk every staffing or recruiting firm need to consider when doing contract placements include the following: Read the rest of this entry »

The recruiting industry is ever-changing, and one trend we have seen is direct placement recruiters starting to accept and work temp/contract roles, so much so that NPAworldwide has created a contract placement specialty group to bring similar members, positions and opportunities together with the goal of more success and placements together.

Some longtime direct hire recruiters think contract roles aren’t worth it because they don’t get one big lump fee like they would with a direct hire. But, they need to consider the benefit of additional revenue (weekly/monthly payments add up, and add to your bottom line!) and the ability to service all of your clients’ needs, both direct and contracting, will likely lead to more work for you.  Read the rest of this entry »

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.