2 BIG Reasons to Start Making Contract Placements
Here at Top Echelon, we’ve seen quite a bit during our over 30 years of existence.
We’ve seen just about everything that can happen to a recruiting agency. And we’ve seen what works well for recruiters . . . and what doesn’t.
The bottom line: a recruiting agency that makes both contract placements and direct hire placements is better positioned for long-term success. Why is that?
Simple: multiple revenue streams AND recurring revenue. That gives you better leverage as an agency owner. When and if one revenue stream dries up, you still have the other stream to sustain you.
But enough of the build-up. Below are two BIG reasons to start making contract placements:
Reason #1—The market is still unsteady.
The COVID-19 pandemic has thrown everything into disarray during the past 12 months, and that includes the employment marketplace. Yes, the Stock Market is up, but I think we can all agree that at this point, the Stock Market is not tied in any real way to reality.
Not only that, but there is also still the very real threat of a double-dip recession. We had a recession last year and we are currently recovering from it, but we could dip back into another one.
During a recession, companies stop hiring on a direct basis. However, they do hire on a contract basis. So if you’re already making contract placements, then you’ll be able to switch gears relatively easily.
Reason #2—You can sell your business for a LOT of money.
If you retire with only a direct hire business, you know what you can sell it for? Next to nothing.
You might view that as unfair, considering how long and hard you’ve worked to build the business. But when you run a direct hire firm, the most valuable part of the business is YOU. Once you’re gone, the value is gone.
However, when you have a stable of contractors, they become the value when you retire and you want to sell the agency. So the more contractors you have working, the more valuable your agency becomes and the more money you’ll be able to get for it.
Here’s the good news: you don’t have to know anything about contracting to make contract placements. That’s because our sister company, Foxhire (formerly Top Echelon Contracting) is here to help.
They can tell you what to do and how to do it. You just make the placements, and they’ll handle all of the paperwork as the back-office. No fuss, no muss, just money.
Keep making those direct hire placements. (And if you don’t mind, split placements, as well.)
But consider how much stronger and better positioned your recruiting agency would be if you added contract staffing solutions to your business model!