6 Ways Contractors Can Increase Recruiter Income
Every search consultant wants to increase their recruiter income. (That probably also means YOU.) Not only that, but it would also be nice if that income was more of a steady stream than a trickle with an occasional flood.
But how, exactly, do you accomplish that?
With contract staffing, that’s how! Or more specifically, by placing workers on a contract basis.
6 paths to more recruiter income
Below are six ways that placing contractors can increase a recruiter’s bottom line:
#1—Bypass companies dragging their feet with direct hires.
Instead of waiting the increasingly long time it takes hiring managers to extend a direct hire job offer to your candidates, you can offer them the quicker, less permanent (and therefore less nerve-wracking) solution of a W-2 contractor. This way, your candidate and your direct hire fee aren’t waiting around and you’re less likely to lose them both. After all, candidates are rejecting offers because they’ve already accepted another job. Hiring speed matters!
#2—Earn a consistent hourly fee for the duration of the contract placement.
The big checks from direct placements are great, but the long gaps in between them? Not so great. Contract placements generate recruiter income every single hour the contractor works. When you add contracting to your business, you will have a steadier stream of income. That means less dependency on “boom and bust” cycles.
#3—Have multiple contractors out at any given time.
This provides recruiter income for every hour the contractor works. Some recruiters think that contract placements don’t pay enough to make them worth their time. However, even just having a few contractors out at the same time can bring in a respectable total hourly income. The more contractors you place, the more your hourly income compounds.
#4—Earn a conversion fee in addition to hourly contract profit if contractors get hired directly.
Conversion fees can be the best of both worlds for recruiters. You get the hourly income for the length of the placement, PLUS a fee for the client to hire the contractor directly at the end of the contract! You can end up making even more than you would have if the candidate had been a direct hire from the start.
#5—If your contractor doesn’t work out, you don’t have to sacrifice income OR time.
Contract placements don’t tend to have the same guarantees attached to them as direct hire placements. It is understood by all parties that the placement has an end date and may not result in a direct hire. At worst, a recruiter may wind up having to find another contractor for a role if the first one didn’t work out. However, they won’t have to return the income they earned already (as some recruiters must do when a direct hire placement ends too early).
#6—Place the same contractor repeatedly and earn their direct hire fee many times over.
Even if you don’t earn a conversion fee on a contractor, you can end up with many times that amount over time by placing them in multiple assignments. This is a definite advantage of placing contingent workers. With direct hires, you only make a one-time fee.
We encourage you to see for yourself how easy it is. And we will be here to help you every step of the way. That’s why you can can also call us at (888) 627-3678.