How to Close More Placements Before the New Year
It’s hard to believe, but it’s already time to start planning for the end of the year. If you are like most recruiters, you want to close as many offers as possible before the ball drops on 2017.
This may be easier said than done. Clients are notorious for dragging their feet on hiring decisions. Fortunately, there are some ways to gently nudge them into making hiring decisions before the end of the year. It may be as simple as advocating strongly for a candidate you believe in or reminding the client that they could lose great talent if the hiring process takes too long. If you need a little extra help, we have a suggestion: contract-to-hire arrangements.
In these arrangements, companies can initially utilize a candidate on a contract basis and later convert them to a direct hire if they want. This addresses a number of company’s hiring hang-ups, especially this time of year:
1. Hiring freezes and budget constraints
Like you, companies are focusing on their bottom lines at this time of year. If they don’t like what they see, they may scale back their hiring plans or freeze hiring altogether, putting any open job orders you may have with them in jeopardy. But don’t give up on your job orders. While your clients may not be able to hire direct during this time, they may be able to bring in contractors. Contractors typically come from a different budget than direct hires. Therefore, companies can often utilize them even during a hiring freeze. When the budget loosens up or they start a new fiscal year, they can then convert their contractors to direct hire if they wish.
2. Economic uncertainty
Even if a company is happy with their financial situation, they may be keeping a cautious eye on the economy. Sure, the Stock Market has been going gangbusters for the past year, but we’re in the midst of the second-longest bull market in the history of the United States. One of the most iron-clad rules about bull markets is that they all end eventually. There are quite a few of you who probably remember how the last bull market ended. Will a recession start in 2018? Nobody knows for sure. The only thing we do know is that when it starts, there will be no way to stop it. These factors are leaving companies feeling less than secure about permanently adding to their overhead. Contract-to-direct offers a risk-free way for them to bring in help. If the economy goes south, they can simply end the contracts. If they instead start to feel more secure about the economy, they can extend direct hire offers to their contractors.
3. The “Perfect Candidate Syndrome”
When companies do hire, they seem to be holding out for the “perfect candidate.” As a result, otherwise great candidates are getting passed up because they don’t appear to have 100% of what the company is looking for. This can be extremely frustrating for you as a recruiter when you know that you have presented a star candidate who would excel in the position. With the contract-to-direct option, you can convince your client to try the candidate on a contract basis. This allows them to evaluate the candidate on the job and gain confidence that he/she is the perfect candidate. If the candidate does prove to be a great fit, the client can then convert them to a direct hire. If not, the company can try someone else. A number of companies are using this option to not only ensure that candidates have the right skills but also to evaluate how they fit in with the organization’s corporate culture.
Besides helping you close placements that might have otherwise fallen off, contract-to-direct also gives you the opportunity to make more money. You are paid for every hour the candidate works during the contract period and even more if they work overtime. Additionally, you can earn a conversion fee if/when the contractor is converted to a direct hire.
Ending 2017 on a high note can be as easy as offering your clients an alternative way to meet their staffing needs. By doing this, you will not only be able to close more placements, you can also strengthen your relationship with your clients, ensuring many successful years to come.
You can can also call us at (888) 627-3678. Start making contract placements and start making more money!