3 Ways Contractors Provide Value to Your Clients
More than likely, you don’t have to tell many client companies what contractors can do for them. They already get it. They want the flexibility and cost savings that contract staffing offers and are actively pursuing contractors.
But there are still a few employers out there that don’t understand why they should use contractors and often question the cost. With these clients, Top Echelon recruiting network member Mario Fidanzi of MedTeam Staffing says recruiters need to employ an “educational sell.”
Below are a few talking points that have worked for Fidanzi:
1. The cost of missed opportunities
Some opportunities won’t wait for companies to find and train the right direct hire employees. They need people who can come in quickly and hit the ground running. “A contractor can bridge the gap until they find someone to hire permanently,” said Fidanzi. If a contractor can help a client bring in more business, that alone can justify their cost.
2. Employees cost more than contractors
When companies compare the cost of employees to contractors, they have to look beyond an employee’s base pay. According to Fidanzi, there are also costs associated with administration, Workers’ Compensation, onboarding, training, turnover, and more. Contractors do NOT come with these additional expenses.
3. The Affordable Care Act
One of biggest expenses is benefits. Employers who previously decided not to take on that additional expense may be forced to under the employer mandate of the Patient Protection and Affordable Care Act (PPACA). The mandate requires employers with 50 or more employees to provide healthcare insurance to those employees. One way around this for small to medium-sized companies is to utilize contractors to keep from reaching the 50-employee threshold.
The contractors become employees of a recruitment back office. Then the back office is responsible for PPACA compliance for those contractors.
According to Fidanzi, this has driven some of his clients toward contract staffing services. They especially like the fact that MedTeam Staffing’s back office, Top Echelon Contracting, offers contractors a PPACA-compliant healthcare plan.
We encourage you to see for yourself how easy it is. And we will be here to help you every step of the way. That’s why you can can also call us at (888) 627-3678.