Primary Risk Areas to Consider When Starting a Contract-Placement Business

by Veronica Blatt

image of contract staffing employeesToday’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 »

Why Work Contract Placements?

by Liz Carey

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 »

Flexibility – The Recruiter’s Key to Unlocking More Revenue, Fresh Talent, and Happy Clients

by Veronica Blatt

TBell photoToday’s guest blogger is Tim Bell, President of TFI Resources, a division of People 2.O, which provides employer of record services for contract placements. TFI Resources is an NPAworldwide Alliance Partner.

For sustaining success, independent recruiters must take advantage of the “candidate’s quest for flexibility” trend that is especially popular among the millennial generation (23-34 year-olds), currently the largest segment of the global workforce. Recruiters and employers alike are realizing that flexibility may be the key ingredient to meeting the competitive demand for talent, while also engaging this influential generation. Read the rest of this entry »

Take the Next Step … Into Contract Staffing!

by Veronica Blatt

Judy-Collins-2017-300Today’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.

The market place for contract staffing has changed dramatically in the last year. Most direct-hire, retained search or contingency recruiters are now being asked to fill contract positions. Read the rest of this entry »

Are You Ready to Respond to the End of Employees?

by Veronica Blatt

A West headshotToday’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 »

Contract Placements Add Up!

by Liz Carey

J04BJ1VCGKTemp 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 »

Independent Recruiters Can Increase Revenue with Temp and Contracting

by Veronica Blatt

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.

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