Q&A — What Can Contracting Actually Do?

Q: All right, let’s say I decide to add contract staffing to my business model in 2010. What exactly can I expect from it? A: In a nutshell, more than you might imagine. When you add contract staffing to your business model, you’ll reap a full range of benefits, both short-term and long-term, that will improve the health and profitability of your business well into the future.1. More money... more money—You’ll supplement your perm placements with contracting revenue that you can count on every month. In a down economy, some recruiters see no drop in their profits because they make up for fewer perm deals with more contract placements. In fact, some recruiters make evenmore money during a recession than they do during a bull market.2. Be a ‘Forever Vendor’—Hiring managers like working with recruiters who can meet all of their needs. Why? For one thing, they save time and energy. They don’t have to look everywhere for what they need. By offering both perm and contracting, you greatly increase the chances that you’ll stay on the “Preferred Vendors” list—forever.3. Riding off into the sunset—What’s your exit strategy? If you only make perm placements, you won’t have much to sell when you retire. But with contracting, you’re building a business with greater value—now and when you decide to ride off into the sunset.4. Subtract stress, add flexibility—The ups and downs of the perm placement business can be enough to make any recruiter sick to their stomach. By adding contracting, you’ll level the playing field with a steady stream of revenue and also add flexibility to your business.