3 Ways Contracting Can Help Recruiting Firms Expand
Adding contracting creates another revenue stream and provides an alternative staffing option that you can offer your clients. And you can add this piece to your business with no ramp-up time or financial investment when you utilize a full-service contract staffing back-office such as Top Echelon Contracting.
Even if you already offer contract staffing, there are ways to increase your revenue on that side of your desk. You may flinch at the thought of expanding your contracting services because of the additional in-house staff or a larger line of credit doing so might require. However, you can expand your business without these additional costs and hassles by outsourcing some or all of your contractors to a contract staffing back-office service provider.
Below are four ways that contracting can help recruiting firms expand:
#1—Taking on more contractors
Has your reluctance to increase your overhead caused you to limit the number of contract placements you will accept? A full-service back-office provider would handle all of the employment tasks, including payroll funding and processing, tax withholdings and filings, unemployment, Workers’ Compensation, legal contracts, benefits offerings and administration, and background checks, so that you don’t have to dedicate more administrative resources to the contracting side of your business. Instead, you can focus on growth by getting more contract AND direct-hire job orders.
#2—Placing contractors in new states
When you run your own back-office, expanding into new states takes a lot of additional time and money. You have to research each state’s employment laws and tax requirements. You have to register to file taxes and for Workers’ Comp coverage. In addition, you have to be aware of state and city-specific employment laws, such as paid leave requirements. It can take months just to get set up to take out-of-state placements. Plus, your ongoing work will increase due to the additional tax filings, reporting, and reconciliations. If you select a nationwide contract staffing back-office, they will already be set up to place contractors in any state, so there is no ramp-up time and no ongoing administrative burden.
#3—Exploring new industries
If you currently only place contractors who work in an office environment due to the Workers’ Comp costs and professional liability, you may want to consider utilizing a contract staffing back-office so you can expand beyond the 8810 office classification. Some back-offices have Workers’ Comp and professional liability coverage that allows them to take on a wider variety of technical, professional, and healthcare placements. When selecting a back-office, though, you will want to ask if they place the specific positions you want to pursue.
Contract staffing can help you enjoy a stellar 2017, and a back-office provider can help you get started with no money and little effort. Just be sure to select a quality, full-service back-office. They should become the legal employer of your contractors and handle ALL of the legal, financial, and administrative tasks accurately and promptly.
You also want to align yourself with a back-office service that has a proven history for delivering quality customer service because ultimately, the back-office provider is a reflection of you and your recruiting firm.