(This is the sixth in a series of blogs that examines the parts of the direct-hire placement process that differ from contract placement and how contracting can be simpler, easier, and less stressful.)
5—The resistance movement
Direct-hire placement—Trying to get paid for making a permanent placement is often like trying to find a needle in a haystack… a really small needle. As recruiters watch 30-day payments become 60 and 90 days, they must be wondering if one day they’ll have to wait six months until they see their check. Plus, think about all of the valuable “recruiting” time that they’re spending on collections.
Contract placement—As we’ve mentioned before in this blog, the money used to pay direct-hire placement fees and the money used to pay contract placement fees don’t come from the same budget. Contract placements normally come from the operating budget. As one hiring authority has put it, “Hiring contract workers is like buying light bulbs.” What does that mean? Simply put—you’ll get paid, and you’ll get paid in a timely fashion because the sign-off for a line item on an operating budget is totally different than determining the long-term implications of capital budgets. You won’t have to place phone calls to the accounting department inquiring about your check, only to be transferred once, twice, three times. If you’re making contract placements through a full-service back-office provider, all you have to do is go to the post office, and then of course, to the bank to cash the checks, because the back-office will handle everything and you can focus on recruiting.