Can One Recruiter Offer Both Direct and Contract Services?

When adding contract services to your existing direct hire recruiting business, you must first decide if you are going to handle the back office tasks in-house. These tasks include payroll, benefits administration, employment paperwork, invoicing, etc. The alternative? Outsource them!

Many small firms or “one-man shows” choose the latter. After all, it can take the average recruiter one to six months to get set up to handle contract staffing issues in-house.

Not only that, but it also takes one or two days every week to keep up with the timesheet, payroll, and invoicing issues. By outsourcing these tasks, recruiters can take on contract opportunities without taking away from their direct hire business.

Contract services with a back office

A contract staffing back office can handle all of the administrative, financial, and legal details associated with contract placements. The back office should also handle all of the weekly tasks and actually become the contractors’ legal employer.

If you decide to outsource these tasks rather than handle them in-house, then you will want to find an experienced contract staffing back office with a well-documented history, an impeccable reputation, and positive referrals and testimonials. Remember that your back office is a reflection of you, the recruiter.

Below is a partial list of the critical tasks that should be provided by a contract staffing back office:

• Bill rates and pay rates assistance
• Contract generation
• Employee paperwork
• Payroll funding and processing
• State and federal taxes
• Workers’ compensation
• Unemployment
• Invoicing and collections
• Background checks
• Certificate of Insurance
• Benefits: medical, dental, vision, 401(k), etc.

If you use a quality contract staffing back office, you can easily offer both direct and contract services to your clients, regardless of the size of your firm. You can enjoy the extra income and client loyalty that come with contract staffing without having to worry about all of the administrative details tied to a blended service business model.

In short, you will be able to focus on what you do best—recruiting!

For more information about the benefits of offering contract services to your clients, visit the Top Echelon Contracting website.