Book a demo

Contract staffing is not just a singular service offering that you can add to your business model. It provides a variety of ways to help solve your clients’ unique staffing issues. In fact, there are six commonly recognized types of contract placements that you can offer to your clients:

  1. Traditional contract staffing
    • Recruiter gets contract job order and locates candidates.
    • Client selects candidate.
    • Recruiter negotiates rates with client and candidate.
    • Contractor becomes employee of a staffing firm/contract staffing back-office.
  2. Temp-to-direct hire conversions
    • Contractor is placed on contract with the intention of eventually being converted to a direct hire.
    • Allows client to “try-before-they-buy” to ensure the candidate is a fit before making the direct hire commitment.
    • Recruiter receives hourly profit for every hour the contractor works AND a conversion fee when they go direct.
    • Contract period typically lasts 6-12 months.
  3. Payrolling for non-recruited candidates
    • Client has a short-term need (3-12 months).
    • They have already located a contract candidate.
    • Client outsources employer responsibility (payroll, taxes, Workers’ Comp, employee benefits, etc.) to a staffing firm/contract staffing back-office.
    • Recruiter earns less hourly income, but because there is no recruiting involved, there is less work!
  4. 1099 independent contractor to W-2 employee conversions
    • The IRS is cracking down on companies that incorrectly classify W-2 employees as 1099 independent contractors (ICs).
    • Recruiters should educate clients on the difference between ICs and employees.
    • If the client has misclassified ICs, the recruiter can convert them to a W-2 employee and outsource the employment of the employee to a staffing firm/contract staffing back-office.
    • Recruiter earns less hourly income, but because there is no recruiting involved, there is less work!
  5. Retiree re-staffing
    • Companies retain or gain the skills and experience of a retired worker by bringing them on as a consultant on a contract basis.
    • The retiree becomes an employee of a staffing firm/contract staffing back-office.
    • Retirees enjoy the flexibility, supplemental income, and opportunity to remain active in the workforce.
  6. Internships/co-ops
    • For college students and graduates trying to gain real-world experience.
    • Clients avoid payroll and human resources issues associated with short periods of employment by making the interns contractors who are employees of a staffing firm/contract staffing back-office.
    • A viable alternative to unpaid internships.

     

If you want to increase your volume of active contract placements, give FoxHire’s employer of record services a try. We handle the administrative details of contract workers so that you can focus on recruiting.

You may also be interested in…

Article

Independent Contractor Compliance: DOL vs IRS

In the realm of labor and taxation, the classification of workers as...

Case study

New Zealand Based Company Expands to USA with FoxHire

How can an international company expand to America and hire new employees?...

Webinar

Why Contract Staffing Should Be in Your Playbook

Are you a direct hire recruiter looking to grow your business? Contract...

A complete Employer of Record (EOR) platform for onboarding, payroll, and compliance – so you can hire without the hassle.