Combat the Peaks and Valleys of Direct Hire Recruiting
Direct hire recruiting is a study in peaks and valleys.
Getting that nice, big direct hire placement fee after putting tons of time and effort into a placement is definitely a peak. But the deep valleys of direct hire dry spells can never be completely avoided. If you’re a direct hire recruiter, it’s a given that you will occasionally find yourself lying awake, worrying about the chance of a fall-off or whether a candidate will accept a job offer.
You have probably accepted the unfortunate valleys as the price for those high peaks. But dealing with all that pressure and worry isn’t necessary to enjoy success in recruiting. By simply adding contract staffing to your business model, you can generate consistent recruiter income. This income can sustain you during the direct hire valleys.
With contract staffing, you are compensated for every hour your contractors work. Rather than receiving a one-time payment like you do with direct placements, you are paid on a weekly or monthly basis throughout the contract assignment. That steady recruiter income can give you the following things:
Peace of mind
Stressing about when your next direct hire check is coming can negatively affect every facet of your life. The tension invades your personal life and can impact your relationships. With contracting to sustain you, you can be secure in the knowledge that you’ll have the money to cover your overhead expenses every month. Since you don’t have to worry so much about when the direct hire placement fees are coming, you can enjoy your life and work again.
A recession-proof business
It’s inevitable that we’ll have another one at some point. Even for successful direct hire recruiters, recessions are a stressful time. Contract staffing can become a lifeline for recruiting firms. While direct hires decline dramatically during a recession, contract assignments tend to increase. That’s because companies still need to get work done. Your contract income can give you enough to scratch by. In fact, you may even be able to completely make up lost direct hire placement income by taking on more contract placements. For many recruiters during the most recent recession, contract staffing was the difference between closing their doors permanently and making it through.
A TRUE break
When was the last time you took a real vacation? Heck, when was the last time you took a full day off? If you’re like many direct hire recruiters, you probably can’t remember. After all, you can’t afford NOT to be available if a direct hire placement should come through. When you have contractors, you’re earning money for every hour they work—even when you aren’t working. So you can feel free to take a day or a week off without fear that you’re hurting your business. Clients and candidates love contract staffing because it provides flexibility. It can do the same for you.
The luxury to be choosy
Some of the best recruiters we know are effective in part because they maintain a select group of clients and only accept job orders they know are worth their time. How can they manage to be so selective? Because they know they will still receive consistent income from their contractors even if they don’t make direct hire placements.
An exit strategy from recruiting
Whether you plan to switch gears in a few years or you want to recruit forever, you may need or want to sell your firm someday. The consistent income that contractors generate for your agency makes it much more eye-catching to buyers than one that only has a name and a list of direct hire clients to sell.
Producing this steady recruiter income is EASY. Placing contractors is more similar to direct hire than you think, if you outsource handling the employment to a recruitment back office service.
You get the job order, you recruit the candidate, and you negotiate the rates. The contract staffing back office handles all of the legal, financial, and administrative aspects of the contract placements. You can start accepting contract staffing job orders immediately. Simply let your current clients know that you now offer contract staffing services.
Don’t fret over your next direct hire placement check. By adding contract staffing to your business model, you can enjoy the rewards of recruiting. AND you can avoid those sleepless nights altogether.
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.