The staffing industry is changing, and as a result, direct placement recruiters are turning to Third Party Outsourcing (contract placements). If you are looking for improved cash flow and improved relationships with clients, contract staffing could be a benefit to your business. If you’ve only done direct-hire placements in the past, don’t worry! There are many similarities between a direct placement and a contract placement. In both scenarios, you the recruiter get the job order and recruit candidates.
With a contract placement, there is one additional step for the recruiter, and that’s determining who is responsible for the all of the “employer” type tasks and functions. Traditionally, these consist of the employee onboarding paperwork, payroll funding and processing, taxes, insurance, collections, compliance issues, etc. There are two options for these “employer” functions, you can handle them yourself internally, or outsource all of the burden to a contract staffing service provider to handle it for you while you continue to focus on recruiting strategies.
- Match your staffing levels with your workload and project requirements
- Quick setup process vs. lengthy direct placement cycle
- Option to terminate contract placement at any time