How Much Do Recruiters Make From Contract Staffing?

You’re stuck in a rut, and starting to dislike your career as a recruiter. Or maybe you’re trying to map out how to start a recruitment agency of your own? Even if you’re performing like a pro, you could worry that there’s nowhere to grow. There could be an obvious option that you haven’t explored yet. Enter: contract staffing.

How Much Do Staffing Recruiters Make?

More than you might think! With contract staffing, you earn money for every each of your contractors’ work. It is common for recruiters to have a goal of keeping 10 active contractors working at a time and to earn a contract recruiter hourly rate of $12 per hour for each contractor. This calculates out to an additional quarter of a million dollars in annual recruiter income.

This is just an average. A number of factors could increase that amount. You could place more contractors. Your contractors may earn overtime, which would increase your income. Your niche may draw higher rates. You could earn contract conversion fees on top of your hourly income if your clients choose to hire your candidates directly. The sky is truly the limit. For example, we work with a recruiting firm who consistently tries to keep around 100 contractors working at a time. As a result, they earned earned $1,049,237 in contract staffing income in 2013.

Where Do Recruiters Find Contract Job Orders?

As both candidates and clients embrace contract staffing, the money is just there for the taking. Don’t know how to get staffing contracts? Most of recruiters’ contract staffing income comes from their existing direct hire employment clients, so you can add this component to your business by simply expanding on relationships you have already established. That’s one of the major benefits of having an extensive recruiting network already developed.

By doing so, you are creating a consistent income source that can help sustain your firm all economic conditions. For some recruiters, having contract staffing in their back pocket has allowed them to survive economic downturns that may have otherwise forced them to shut their doors.

So is a quarter of a million worth the effort? We should think so, especially when there is really not a lot of extra effort required. If you outsource the employment of your contractors to a provider of back-office support solutions, there is no upfront financial investment, ramp up time, or additional overhead needed. You can start placing contractors in a matter of hours.  And your process is much the same as it is for direct hires… all you have to do is recruit the candidate and negotiate the contract rate.

It doesn’t matter if you are a large firm with several recruiters or a one-man show. ANY recruiter can add this consistent source of income with the help of a contract staffing back-office.