Contractor Outsourcing Management Saves Recruiters Money

At the end of the day, every recruiter wants two simple things: more time and more money. But some business expenses and time-wasters are simply unavoidable... right?Here's the secret:you can keep more of your hard-earned money and save valuable time by changing one thing about the way you do business as a recruiter. That one thing is contractor management outsourcing.

Contractor management outsourcing: the specifics

To be more specific, outsourcing the handling of contracts (and employment relationships) with clients and candidates in a contract staffing scenario. Here are just a few of the ways that contractor management outsourcing saves you time and money:

#1—You spend less time writing contracts.

For recruiters, timeis money.The more time you have available to spend getting job orders, sourcing candidates, and making matches, the more income ends up in your bank account. Any minute (and let's be honest, writing and negotiating a contracttakes more than a minute) spent on other business activities is a minute that did NOT generate revenue.Maybe you can't outsource the management of your direct-hire search contracts—but you CAN outsource the contract-staffing-related ones. So why not put time back on therecruiting clock by doing so?

#2—You don't spend money on legal fees to get your contracts reviewed.

Let's say you dodecide to handleyour own employee and and client contracts. You then have to getthem reviewedtomake sure you won't end up fighting a losing court battle sometimedown the line.And legal contract review isn't free.Fortunately, if you outsource, you can forget about this part.The bestback-office services already use lawyer-approved, time-tested contractsforboth employees and clients. And when a client sendstheir own 50+ page master agreement to use instead, yourback-office team should also handle the contract review process.

#3—You stay out of the employment liability equation.

If you outsource, your back-office will function asthe employer of record—not you. By staying out of the employment equation, you neatly avoid the risk ofco-employment liability orfines.If you employ the contractors (and handle the contracts) yourself, you are responsible for all the employment liability. Moreover, you could put your client at risk for co-employment liability if the contract terms are not air-tight.

#4—You don't have to worry about misclassification fines.

Afirmthatengages a 1099 independent contractor (IC) can be subject to fines and penalties if the individual is determined to have been misclassified.Even having a contract in place that states the individual is a 1099 IC will not fully protect you.However, having a back-office service engage the contractor canprotect you. The back-office will evaluate the appropriate classification for the contractor(1099 IC or W-2 employee)andshield you from the dangers of employee misclassification.

#5—You don't spend time or money trying to collect on unpaid invoices.

A full-serviceback-officewill issue invoices and handle thecollection effortsforunpaid client invoices. You can simply sit back and wait for your back-office to deal withthe paperwork and the headaches.For a recruiter, outsourcing contract management and employment responsibilities in a contract staffing scenario makes sense. You keep more of your hard-earned money, and you carve outmore time to spend on revenue-generating recruiting activities.More time plusmore money equals even more money!This article is for information purposes only and should not be construed as legal advice.