There IS a Solution to Hiring Delays: Contract Staffing
Nobody likes hiring delays, especially recruiters. However, if you’ve been in this profession for any length of time, you know that hiring delays are part of the business.
One of the reasons that it takes employers so long to fill their open positions is that available workers lack the specific skills needed. This is true within certain industries and for a number of positions. This, of course, is the “skills gap.”
The causes of hiring delays
So while a skills shortage may be impacting certain sectors, it appears that other factors are at play. These include the following three factors:
Sure, the Great Recession seems like a distant memory and the Stock Market has broken through all-time highs lately. However, there is still plenty of turbulence in the economy. In fact, there are some economic analysts who believe that the Stock Market is overvalued and is primed for a drop. After all, this is the second-longest bull market in the history of the United States. If there’s one thing for sure, every bull market in this country has ended . . . eventually. When will this one end? When will there be a recession? Stay tuned!
#2—Increased employment regulation
Employment legislation in general has increased on every level, not just the federal level. Take, for example, paid sick leave (PSL) laws. These laws are being passed on the state and local level, and they all have their own provisions. Employers have to figure out how/if to comply with any PSL law that may exist in the areas where they have employees. Besides the costs of providing the leave, the administration and tracking can be a nightmare. The additional cost and administrative burden each employee represents as a result of these employment laws is a factor employers consider anytime they think about adding staff.
#3—Insistence on the “perfect” candidate
If they do have to hire amid all the uncertainty, companies seem to want the proverbial “purple squirrel.” Candidates are being disqualified simply because they don’t have 100% of the qualifications the company is seeking. They often have to endure several interviews before being told that the employer has decided to hold off on making a decision. Many recruiters are getting frustrated because clients keep asking for more options even after quality candidates have been presented.
The anecdote for hiring delays
As a recruiter, you depend on placements for your livelihood. Consequently, hiring delays can cause a lot of undue stress. Fortunately, there is a way for you to help clients make decisions more quickly. You can offer candidates on a contract basis. In other words, you can offer contract staffing services to your clients.
This addresses a number of the factors mentioned above. Employers concerned about the cost and administrative burden tied to employees can instead utilize contractors. These contractors are the legal employees of a third party (you as the recruiter or an outside recruitment back office service that you utilize). In this situation, the third party, not your client, is responsible for legal compliance. To combat economic uncertainty, they can use the person on a contract basis and convert them to a direct hire when they feel more secure.
In the absence of the “purple squirrel,” contract-to-direct arrangements are a great option. They allow the client to evaluate the worker’s performance, work ethic, and fit with the corporate culture on the job. They can then decide whether or not to extend the direct hire offer to the candidate. Some clients are evaluating most of their new hires in this manner.
A long hiring process can be frustrating, but you don’t have to just sit back and wait. By offering alternative staffing options that address your clients’ concerns, you can get job orders filled more quickly. That’s good for you, your clients, and your candidates.
You can can also call us at (888) 627-3678. Get started with contract staffing today!