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For any number of reasons, you may have decided to run your own contract staffing back-office. Maybe you only have a few contractors. Maybe they are all in your home state. Maybe you have a large line of credit.

While those are valid reasons, it’s possible that handling the back-office tasks for all of your contractors is holding your firm back.  If you are interested in growing your recruiting or staffing firm, you may want to consider outsourcing some or all of your contractors to a back-office.  A contract staffing back-office can help your business expand and increase your profits by allowing you to:

  1. Take on more contractors. Have you resisted taking more contracting business because it would require you to add additional administrative staff? If you utilize a contract staffing back-office, you can take on as many contract placements as you want without any additional staff. Plus you do not have to worry about the line of credit because the back-office handles all aspects of running the payroll… including the funding.
  2. Expand into new states. Taking placements in other states requires a long ramp up time while you research state employment laws and tax requirements, register to file taxes in those states, and register for Workers’ Compensation coverage.  Plus, your ongoing administrative burden will increase due to the additional tax filings, reporting, and reconciliations that will be required. A national contract staffing back-office is already set up in all of the states, so there is no ramp up time – you can start taking contract job orders in other states immediately. And they handle all of the additional administrative tasks as well. (Be sure to look for a back-office that doesn’t require you to use them for ALL of your placements so you can continue to run your home state placements, if you desire.)
  3. Expand into new industries. If you are currently placing contractors who only work in an office environment due to the Workers’ Comp costs and professional liability, you may want to consider utilizing a contract staffing back-office so you can expand beyond the 8810 classification.  Some back-offices have the Workers Comp and professional liability coverage to take on a wider variety of placements.
Don’t let your in-house back-office hold you back from increasing your business and profits. A nationwide back-office service can help you expand without any upfront investment in time or money.  Just be sure to select a back-office with a pristine reputation for quality. Remember, your clients will see your back-office as a reflection of your firm.

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