While the recession wreaked havoc with the direct-hire recruiting world in 2008, FoxHire paid out nearly 20% more money to recruiters in contract placement fees than it did the previous year. FoxHire paid over $3.1 million to recruiters last year. That represents a 19.2% increase over 2007.
With over two million jobs slashed from the payroll of companies nationwide, direct-hire job orders decreased steadily throughout 2008. However, that was not the case with contracting job orders. In fact, quite the opposite occurred, with more recruiters securing—and filling—job orders than they did the previous year.
Contracting offers a number of benefits to companies. First and foremost is the ability to control costs while maintaining consistent levels of productivity. This is important in light of the fact that similar economic conditions are being forecast for the remainder of this year. Consequently, companies will continue to turn to contracting as a way to meet deadlines and complete projects.
In other words, contracting provides companies with much-needed flexibility, which they can use to get the job done without incurring the costs associated with hiring candidates on a full-time basis. Recruiters who add contracting to their business model can enjoy the same type of flexibility, allowing them to better weather the challenges that the recession is presenting.
