Problem #1 (Stress)—As a direct-hire recruiter, what’s typically the number-one source of your business-related stress? Not knowing when your next placement check will be arriving in your mailbox, that’s what. No matter how many placements you made the previous month, you always start the next month back at “square one.” And all it takes is a few dry months for your stress-ometer to erupt into full-blown panic mode.
Contracting Solution—There’s no need for a stress-ometer for those recruiters who place contractors. Why? Because instead of receiving their money in one lump sum, they receive it on a monthly or even weekly basis, a little at a time. That way, a recruiter who has just a few contractors out on assignment can rest easy in the knowledge that no matter how many direct-hire placements they make during the month, their contracting money will arrive, nonetheless. For some recruiters, their contracting money pays for all of their overhead for the month. Their direct-hire placements? Pure gravy. Think about that for just a minute.