Q: Why is this a great time for contracting?
A: This is a great time for a recruiter to add contracting to th
eir business model because both companies and candidates are attracted to it. While contracting is beneficial during a good economy, it’s even more attractive during a recession like the one we’re currently experiencing.
Companies have been slashing their payrolls since the beginning of 2008, but they’ve really stepped up their layoffs in recent weeks and months. Despite that, there’s still work that needs to be done and goals that need to be accomplished. Hiring managers, faced with these expectations, are looking for talent to help them meet their deadlines and finish their projects.
In many of these situations, hiring somebody on a full-time basis is not a viable option, and this is a very frustrating situation for hiring managers. You can help them solve this dilemma by offering contract staffing as an alternative to a direct hire. The company’s investment in the worker is small in comparison to the return that they’ll receive on that investment. In addition, there’s no long-term commitment. Once the project is finished or the deadline is met, they can simply end the contract assignment without the burden of termination paperwork, severance pay, unemployment, benefit extensions, etc.
Candidates are open to the idea of working on a contract basis more than ever. The reason, of course, is the current state of the economy. Candidates are realizing that the prospects of finding the full-time job for which they’re looking are becoming bleaker. Many actually prefer contract assignments because they’re paid for every hour they work, have an opportunity to travel, can expand their career portfolio, and have access to benefits at the same time. Even if they happen to possess the true full-time mentality, contract staffing allows them to get their foot in the door for future direct-hire opportunities.
Consequently, this is the perfect time for recruiters who offer contract services. Both companies and candidates are in need of the flexibility—not to mention the other benefits—that contracting can provide. If you’re not positioned correctly, you could miss out on an excellent opportunity for more revenue in 2009.