Contracting: It's EASY ... And It Helps Your Direct Hire Business

There is a common misconception out there that contract staffing is hard. This misconception keeps many direct hire recruiters from enjoying the steady cash flow, flexibility, and other benefits of offering contract staffing to client companies. But as IT recruiter Bob Small recently told recruiters at the FoxHire® Fall Conference, it doesn’t have to be hard, and it doesn’t take away from your direct hire business. It actually helps it.Small, who is a Partner of the recruiting firm Carroll Technology Services, Inc., speaks from experience. When he started recruiting in 1988, he initially only took direct hire job orders. In fact, he turned down many contract staffing opportunities because they took him out of his comfort zone.Finally, in 2009, he reluctantly took his first contract staffing job order. He admits that he was “scared,” but his fears were quickly put to rest when he called our office. As the legal Employer of Record for contractors, we handle all of the administrative, legal, and financial details of the contract placement, including contracts with the employee and client company, employee paperwork, time sheet collection, payroll funding and processing, tax withholding, benefits administration, Workers’ Compensation coverage, invoicing, collection of accounts receivables, background checks, etc.“In the beginning I didn’t know anything about rates and markups, but FoxHire helped me with the pay rate and the bill rate through the quote system. They handled ALL the details and made it easier for me,” Small said.”When they communicated with my client – which is always a sensitive issue – they did a great job. Clients felt that the customer service and professionalism were great.”On that first contract placement, Small earned $13.15 for every hour the contractor worked, which calculated to $2,274.95 per month of consistent cash flow. That first placement lead to another and then another, and before Small knew it he had become a recognized industry expert in his niche for direct hire, contract staffing, and contract-to-direct hire. He is now able to meet ALL of his client’s staffing needs, which is critical in today’s business environment.Small told the recruiters at the conference that if they are nervous about venturing into contract staffing, they need to just jump in. When recruiters use a contract staffing back-office, such as FH, they don’t need to have comprehensive knowledge of contract staffing, he said. Recruiting knowledge is the only prerequisite.“It is so easy that my sixth-grade daughter could do it if she used FoxHire,” Small said.Like many recruiters who do contract staffing, Small is predominantly a direct hire recruiter who simply decided to add contracting to his business model. As a result, he has become an integral part of his clients’ workforce planning, and he has created an additional stream of revenue. What benefits could you experience by adding contract staffing to your business model?