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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.

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