Direct-Hires to Become the Minority?

FoxHire has already discussed on this blog about how companies are sticking their toes back in the hiring waters by hiring temporary/contract workers rather than committing to direct-hires. This has been seen by many as a good sign that the economy is improving because hiring following a recession usually does start with temporary/contract positions. But could contract work permanently become the hiring method of choice for companies?According to a recent money.cnn.com article titled “Say Goodbye to Full-Time Jobs with Benefits,” the answer to that question is yes. In fact, James Stoeckman of WorldatWork (a professional association of human resource executives) was quoted in the article as saying that he believes full-time employees could become the minority in this country in as little as 20 years!Companies still have projects and deadlines, but are reluctant to hire directly because they need to limit costs. One major cost factor is healthcare and similar benefits such as vision, dental, and pension plans. Employers are now looking even more closely at the benefits they offer because they fear that recently passed Healthcare Reform will raise costs and their administrative burden even more. Other costs tied to direct employees include workers’ compensation and unemployment insurance.From a candidate’s perspective, all of those things are important… especially healthcare. How can a recruiter survive in this environment and give both the companies and candidates what they want and need?For many recruiters, the answer is to offer contract placements and outsource the workers to a back-office service provider, such as FoxHire, that can then serve as the W-2 Employer. The back-office should automatically provide workers’ compensation and unemployment insurance. But most importantly, the back-office should offer benefits. For example, FoxHire offers Anthem Blue Cross and Blue Shield to its contractors, along with vision, dental, life, and 401k.One thing is for certain… the times are changing, and if you want to survive in this new era, you may want to consider adding contract staffing services to your business model.