One of the biggest fears recruiters have about contract staffing is that they won’t be able to find candidates. Well, as we addressed in our previous article “Top 5 Contract Staffing Myths: Recruiter Edition,” many candidates are choosing to work on contracting due to the flexibility it provides. But you may occasionally find that you have to dispel some lingering myths candidates may have about contract staffing:
Myth 1: Contract work does not pay as well as direct hire.
Truth: Workers may actually earn MORE on a contract assignment. They are paid for every hour they work, plus overtime in a majority of situations. According to IRS and Department of Labor (DOL) guidelines, many job classifications even pay time and a half for overtime. Another advantage is that companies are often more flexible about when and where those hours are worked, especially for project-based assignments.
Myth 2: I can’t get benefits as a contractor.
Truth: It is commonly believed that by becoming a contractor, you automatically forfeit your right to benefits. But in reality, if they become the W-2 employee of a full-service back-office, contractors often do have access to health insurance for contractors . This is especially important in light of the looming Obamacare employee mandate that will require most Americans to carry health insurance at the beginning of 2014. As a recruiter, you can differentiate yourself from other firms by aligning yourself with a contract staffing back-office service that offers contractors benefits such as health, dental, vision, and life insurance and 401(k). Just be sure that the back-office is Obamacare-compliant, offering contractors a healthcare plan that will meet the requirements of the employee mandate.
Myth 3: Contract staffing is only for the unemployed.
Truth: This is likely the biggest myth about contract workers. Some people believe that contract workers are not the “cream of the crop” and that they only take contract job orders because they can’t find a direct hire position. But again, more and more candidates are choosing contract staffing as a lifestyle. Why? There are multiple benefits of contract work. Contract staffing offers a level of flexibility not available in many direct positions. It also gives them the ability to bolster their resumes with new skills, travel, and enjoy greater variety in their work lives.
Myth 4: Contract staffing is only for secretaries and factory workers.
Truth: This myth stems from a confusion between “contractors” and “temps.” Temps do tend to be clerical and blue collar workers performing very short assignments (1 to 90 days) at a lower pay rate. Contractors, on the other hand, are typically white collar workers in technical, professional, and healthcare positions. They can be found at every level, up to and including the C-Suite. Assignments tend to last 3 to 36 months or even longer.
Myth 5: There is less security in contract work.
Truth: Yes, with contract assignments (unless they are contract-to-direct), there is an end in sight. But in light of the recent recession, many workers prefer knowing when their work is expected to end rather than being blindsided by a layoff from a so-called “permanent job.” With contract assignments, they can prepare for the end and trust that their skills will allow them to line up another contract assignment. This is another reason, beyond flexibility, that workers are choosing contract staffing as a lifestyle.
Contract staffing strays from the typical employment relationship that workers are used to, but this is a situation where change can be very good. By accepting contract assignments, workers can enjoy a number of advantages. As a recruiter, you can help candidates discover these advantages and add to your stable of loyal contractors.