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For the past six-plus years, businesses have operated under a cloud of economic uncertainty. With the recently resolved government shutdown, continued political unrest, and the looming Obamacare regulations, it does not appear that black cloud will be going away anytime soon. But you can keep it from casting a shadow over your recruiting firm.

While the government shutdown may be over, Standard and Poor estimates it took $24 billion out of the economy, according to the CNNwire.   Plus, the overreaching budget issues that divide the government have not been resolved, so future political battles are likely.

Consider this estimate of annual recruiter income based on a common model where 10 contractors are working and the recruiter earns $12 per hour for each contract placement. Now is the time to add contract staffing to your business model, if you have not already. No one knows what impact this political unrest will have on the economy, but contract staffing can help you prepare your firm for whatever happens by providing a reliable source of steady income. With contract placements, you receive income on a consistent basis rather than a lump sum.  Most contract placements run on a weekly cycle, so your contractor gets paid every week, and you also get paid weekly once the client payment cycle is established. For many recruiters, their contracting money covers their monthly overhead, making their direct hire fees pure profit. Some recruiters see no drop in profits in a down economy because they make up the decrease in direct placements with more contract placements.


Estimated Annual Recruiter Income on Contract Staffing

$12/hour x 10 contractors = $120/hour
$120 x 40 hours a week = $4,800/week
x 52 weeks per year = $249,600 annual recruiter income

Contract staffing also provides you with a solution you can offer clients that may be reluctant to hire direct.  Companies have never really gotten over their fear of direct hiring that was born during the recession. But if they want to survive and thrive, they can’t put off hiring forever. Contract staffing provides a risk-free way for them to get the help they need.  If the economy goes south, they can easily reduce their contract workforce without the devastating layoffs that plagued companies during the recession.

No one can predict what will happen over the next several months, but in light of recent events, it’s prudent to be prepared for economic challenges. Contract staffing can provide a dependable income stream that can help you weather any storms that may come along.

If you’re looking for an easier way to make contract placements, consider using FoxHire’s employer of record services. We shoulder the administrative burden of your placements, so that you can focus on recruiting.

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