Many recruiters might be saying to themselves, “Okay, how in the world do I get started offering contract staffing services? I don’t know the first thing about it.” Don’t worry about that. You do know something about being a recruiter, and that’s still the main component to making contract placements.
There are two things you should do up front. The first is to find a quality contract staffing back-office. This back-office service provider should become the contractor’s employer so that the contractor gets a W-2 at the end of the year. (As a word of caution, if a contractor is going to be paid on a 1099 basis instead of a W-2, there are many potential issues with taxes, insurance liability, etc.) The W-2 employer (back-office) should handle the following: federal and state taxes, all new-hire paperwork, legal contracts, co-employment liability issues, workers’ compensation, time sheets, invoicing, collections, payroll funding, paycheck processing, expense reimbursements under IRS guidelines, and the general day-to-day administrative functions.
Plus, it’s a huge advantage if the back-office service provider you select offers contractor benefits such as medical, dental, vision, 401(k), etc. Benefits are critical in today’s business/employment arena and will help you to recruit and maintain quality contract candidates. Aren’t you glad you won’t have to worry about any of that stuff? And your clients will be glad, as well. This is a win-win-win situation!
The second thing you’ll want to do is spend an hour or two reading about contracting. FoxHire has developed a Contract Training Kit that explains how a direct placement recruiter can incorporate contract staffing into their business model. This Contract Training Kit is available for free, and you can request one by clicking here. This kit will give you some basic information, including definitions, rate negotiation tools, marketing, sample paperwork, advantages to all parties, etc.
‘Contracting 101’ is easier than you think! Get started today, and put the power of contract staffing to work for you.
