Placing Contractors Can Save YOU from a Recession
Let’s get something out of the way. There IS going to be a recession in the future. In fact, it’s probably going to be the near future.
Does this make a doomsayer? A naysayer? A problem child? No, just a pragmatic student of history. You don’t have to be an economist to know that a recession hits in this country roughly every seven to 10 years.
I also have a calendar. I have more than one, actually. All of them tell me that the most recent recession started roughly 10 years ago. You remember that one, correct? It was great! That’s why they labeled it as “The Great Recession.”
So I’m not claiming to foretell the future. I’m claiming to know how to add and subtract.
Important characteristics of a recession
If you’ve been in the recruiting profession for any length of time, then you know what’s going to happen when the recession hits. Direct hire job orders are going to dry up. And it’s not just the fact that they dry up that’s so devastating. It’s the length of time that they remain dried up.
There are two important characteristics of an economic downturn: how sharp it is and how long it lasts.
A recession could be shallow, and the economy could recover quickly. It could be sharp, and the economy could recover quickly. It could be sharp, and the economy might NOT recover quickly. That was, in fact, what happened with The Great Recession. That’s why the recovery that followed it was dubbed “The Jobless Recovery.” That’s because even though the economy was technically in recovery mode, companies still did not issue direct hire job orders.
However, those same companies did issue contract job orders. In fact, The Great Recession helped to usher in a dramatic shift in the employment marketplace. Because of that recession, contractors are now a permanent part of companies’ workforce staffing plans. In other words, they’re always hiring them to supplement their direct hire staff. Not only that, but they’re always ready to hire more.
The opportunity hidden in adversity
So what does all of this mean? It means there is a tremendous opportunity for recruiters who only place candidates on a direct hire basis. That’s because:
- Employers are willing to hire candidates on a contract basis right now.
- They’ll be even MORE willing to hire candidates on a contract basis once a downturn begins.
Both the recession in 2001 and the recession in 2008 were similar in nature. They were sharp recessions typified by long recovery times. [Opinion Alert]: With all of the monetary mistakes and financial lapses in judgment that the U.S. government has committed during the past decade, it’s a safe assumption that the next recession will be just as severe. (Could it be more severe? Let’s hope not, shall we?)
The bottom line is that offering contract staffing can save YOU from a recession. It can save your recruiting desk, and it can save your recruiting firm.
During every recession, recruiters go out of business. During The Great Recession, it was estimated that roughly 40% of independent recruiters “bit the dust.” That’s a fairly high percentage. Will that many recruiters go out of business during the next recession? Survey says . . . there’s a darn good chance.
Yes, we incessantly promote contract staffing services. That’s because you can be the beneficiaries. We want to help you make more placements—all kinds of placements. During the next recession, direct hire placements will be difficult to come by. That’s why we want to help you make contract placements.
3 easy steps to making contract placements
And doing so is NOT as difficult as you might think. There are three main steps:
- Get the contract job order.
- Find a contract candidate.
- Call us so that we can do everything else.
Sounds easy, right? That’s because it is. Forget about the administrative details. Forget about the financial details. Heck, forget about the legal details. Let us handle all of that for you.
Look, we still want you to make direct hire placements. We’re not crazy, after all.
However, we want to help you make contract placements while you make those direct hire placements. And then, when a downturn arrives, you’ll be well positioned to do more than just survive it. You’ll be positioned to thrive during it.
Which will be a lot more than what 40% of the profession will be able to say.
Then call us! You can do so toll-free at 888.627.3678.