What’s More Secure: Direct Hire or Contract Staffing?

In a previous blog post, we explored the difference between direct hire placements and contract placements. However, that blog post raised an important question: which is more secure for recruiters?

There is a common misconception that direct hire positions offer candidates more job security, and therefore, they prefer to take those positions. In reality, more and more workers WANT to be contractors because they feel like they have more job security in contract assignments.

But isn’t contract work temporary by its very nature? How can a work arrangement that is meant to end be more secure than a traditional direct or “perm” job?

Correcting contracting misconceptions

First, there is no such thing as a permanent job anymore. Instead, we talk about “direct hire,” and many recruiters in the industry do the same. It increasingly rare for workers these days to spend their entire careers with one company. The last recession taught workers that their jobs could end with little or no notice, leaving them to update their resumes in a hurry so they could start their unexpected job search.

Many people think contract assignments are risky because they are designed to only last a certain amount of time. But in that knowledge is power for the worker. Rather than being blindsided by a sudden layoff, they can be prepared. They keep their resumes up-to-date. They depend on their own skills to secure consistent contract work rather than a single employer.

As a recruiter, you can make this even easier. Because contract assignments normally have a tentative end date, you know when to contact your client to check on the status of the assignment and get something else lined up for the contractor if the assignment is about to end.

The side benefit is that you can inquire about other staffing needs the clients may have and pick up other job orders in the process. Clients may beat you to the punch, contacting you to let you know that the assignment is about to end. Again, this gives you enough advance notice to line up another “gig” for the contractor before the current assignment officially ends.

The beauty of this is that rather than placing a candidate only once and earning one placement fee, you can earn that fee over and over by placing the same great candidate.

Benefits of contract staffing

Contracts can be extended, as well, lasting much longer than expected. They can even turn into  a direct hire position. When that happens, you as the recruiter can earn a conversion fee over and above what you earn while the contractor is working.

Beyond the job security, contract staffing offers workers a number of other benefits:

• Flexibility—Contractors are not necessarily tied to the typical 9-to-5 schedule due to the project-based nature of contracting. This enhances work-life balance.
• Earning potential—Because they are typically paid hourly, contractors earn money for every hour worked, including overtime hours.
• Enhance resume—The knowledge and skills contractors gain in a contract assignment can help them secure more work in the future.
• Variety—Contractors get to experience different types of work, projects, companies, and even geographic locations.

Are you in the position to provide the type of contract staffing opportunities these candidates are seeking? If not, you will want to be sure that you are accepting contract staffing job orders from clients so you can attract the highest quality candidates.

Are YOU ready for contract staffing solutions or contract placement services?

Then download our Quick-Start Guide to Contract Staffing. Or request a demo with one of our contract staffing specialists.

You can can also call us at 888.627.3678. Start making contract placements and start making more money!

(Editor’s note: This article is intended for informational purposes only and should NOT in any way be considered legal advice.)