Contract staffing is surrounded by a number of myths and misconceptions. These myths often keep recruiters from enjoying the increased sales, steady cash flow, and client loyalty that come from offering contract staffing.
Here is a summary of the top five contract staffing myths… and why they are not true:
Myth 1: My clients don’t need contractors.
Truth: According to the Bureau of Labor Statistics, contract staffing is outpacing overall job growth five times over. That means it is quite likely your clients DO need contractors and may already be using them. So why haven’t you heard about it? It may be because you have not previously offered this service, so they went elsewhere. If you start talking to clients about contract staffing, you may be surprised how many do need contractors and how much extra business you could be getting from existing clients.
Myth 2: Contract staffing is much harder than direct-hire.
Truth: This myth stems from the fact that recruiters often become the W-2 employers of their contractors, which adds a large amount of administrative burden and financial and legal liability to their plates. But when recruiters outsource these tasks to a contract staffing back-office service, their process remains the same as direct hire: they get the job order, and they find the candidate. In some ways, contract staffing is even EASIER than direct hire because the placement cycle tends to be a little quicker and clients are a less likely to demand the “perfect candidate” for a contract placement.
Myth 3: Candidates don’t want to work on contract.
Truth: A common misconception is that contract assignments are the jobs candidates take when they don’t have any direct hire options. But more and more, candidates are choosing contract work as a lifestyle because of the many advantages of contract staffing: flexibility, the opportunity to expand skills sets, the ability to travel, etc.
Myth 4: Contract staffing will take away from my direct hire business.
Truth: When you utilize a contract staffing back-office, you will still have time to take on direct hire job orders. In fact, you may attract new clients who need BOTH contract staffing and direct hire solutions, so your direct hire business could actually thrive as a result of your contracting services.
Myth 5: There’s not enough money in contract staffing to justify the effort.
Truth: Having just one contractor can start a steady stream of income that can help you cover your monthly business and personal expenses. And the more contractors you have, the more it adds up. For example, if you had 10 contractors working and you earned $12 per hour for each one, that would be $120 per hour. That’s an additional $249,600 per year in recruiter income! And again, the effort is very minimal when you utilize a contract staffing back-office service.
Don’t let fear and misconceptions keep you from adding a potentially lucrative line of business to your firm. Know the facts, and reap the rewards!
