While recruiting is ultimately a rewarding profession, it’s one that comes with it’s share of stress and frustration. Many recruiters shy away from contract staffing because they think it will only add to their stress.
In fact, contract staffing can help relieve many common causes of recruiter stress, including the following:
#1—Unpredictable income
This is the number-one source of stress for many direct hire recruiters. No matter how many placements you make one month, you always have to start over in the next month. It only takes a few slow months to cause concern. Contract staffing can minimize that concern. Why? Because instead of receiving your fees in one lump sum, you receive your contract staffing fees on a regular basis.
A recruiter with even just a few contractors out on assignment can rest easy knowing that, even during dry direct placement months, their contract staffing income will be there. For some recruiters, their contracting money pays for all of their overhead for the month and their direct-hire placements are pure profit.
#2—Economic uncertainty
The recession is supposedly long gone, but between political squabbles and additional employment regulations, companies are still hesitant to hire. What if your clients institute a hiring freeze? Worse yet, what if there is another recession? Contract staffing smooths out the peaks and valleys in direct hire.
Despite the uncertainty, companies need workers to complete projects and meet deadlines. Contract staffing allows them to bring in the help they need without committing to a direct hire. They can even add contractors during a hiring freeze because they come from a different budget than traditional employees.
#3—Slow decision makers
Employers are afraid of selecting the wrong candidates, so they are increasingly dragging their feet on direct hiring decisions, often losing great candidates in the process and putting you back at square one. With contract staffing, hiring managers usually have an urgent need and want you to get them someone quickly. They just want someone who can complete the work as quickly as possible, so they aren’t concerned with finding the perfect cultural fit.
#4—Counter-offers
Direct placements are known for falling apart at the 11th hour due to counter-offers. But with contract staffing, counter-offers are less common because the contract candidates understand the short-term commitment and the scope of the assignment.
