FROM MYTHS TO MONEY

YOUR JOURNEY TO REVENUE WITH CONTRACT RECRUITING

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Your Journey to Revenue with

Contract Recruiting

TRENDS & IMPACTS

OPPORTUNITIES AHEAD

TOP 10 REASONS TO PLACE

TEMPORARY & CONTRACT

WORKERS

TOP 5 FAQs ABOUT

PLACING TEMPORARY &

CONTRACT WORKERS

CONCLUSION

A PARTNER YOU CAN TRUST

TABLE OF CONTENTS

ALL CONTENTS © PEOPLE 2.0, LLC ALL RIGHTS RESERVED

Trends & ImpactsThe steady rise of the contingent workforce brings with it many opportunities for the savvy recruiter.

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If projections from The Wall Street Journal ring

true, recruiters will continue to face an increased

demand for contract placements:

Never before have American companies tried so

hard to employ so few people. Few companies,

workplace consultants, or economists expect the

outsourcing trend to reverse. Moving non-core

jobs out of a company allows it to devote more

time and energy to the things it does best. When

an outside firm is in charge of labor, it assumes

the day-to-day grind […] and the company worries

only about the final product.

Wall Street Journal | February 2, 2017

The demand for contingent workers continues to increase.

According to research published by Staffing Industry Analysts (SIA), the percent of U.S.

workforce that is contingent was:

12% 16% 22%in 2009 in 2012 in 2016

By 2020, more than 40

percent of the U.S.

workforce will be

comprised of

contingent workers.

Preference for flexible work environment is driving

unprecedented growth of contingent workforce.

“Temporary staffing holds the major percentage share in the

total recruitment and staffing market, and is projected to grow

at a faster growth in the future owing to the growing

preference for flexible working environment.”

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Intuit Study

Global Recruitment and Staffing Market (2016-2021) report

40%

Job flexibility is especially popular among the millennial generation (23 to 34 year-olds),

currently the largest segment of the global workforce.

“Over the next several decades, the impact millennials have on when, where, and how we all

work will be felt in pretty much every organization and even in public policy measures.”

The correlation of flexibility and contingent

growth is not limited to millennials.According to American Staffing Association, about one in five

of surveyed staffing employees (across generations) cite

‘scheduling flexibility’ as a key reason for choosing temporary

and contract work.

2016 FlexJobs survey

5 C O N T R A C T R E C R U I T I N G

• Recruiters are better equipped to edge out the competition and increase revenue;plus, the flexibility inherent in temporary and contract placements make thepositions attractive to millennials

• Talent is acquired and satisfied with flexible options (and recruiters improvetalent retention)

• Client companies fill positions with scalability to meet the changing needs ofbusiness (and recruiters improve client satisfaction)

More and more recruiters are

recognizing that revenue

opportunities are inevitable if they

can appeal to millennials and serve

clients with contingent workforce

needs.

Recruiters and employers alike are

realizing that flexibility may be the

key ingredient to meeting the

competitive demand for talent, while

also engaging this influential

generation.

More and more companies are offering flexible work options, which allows employers to

appeal to millennials while potentially reducing turnover and increasing productivity.

Furthermore, retaining millennials is good for long-term business.

This climate creates exciting opportunities for recruiters when adding contract and temp

placements to their traditional direct hire placements.

It’s actually a win-win-win:

C O N T R A C T R E C R U I T I N G 6

Opportunities Ahead

That certainly makes a compelling case for you to blast any myths that could have you

missing out on this revenue stream!

If you are now ready to move beyond only traditional direct-hire recruiting and benefit from

the lucrative opportunities found in contract recruiting, be sure that you eliminate the fear

that stems from persistent myths about contract recruiting.

Stop thinking:

Contract recruiting isn't my business model

I specialize in “niche” recruitment.

My candidates wouldn’t want a contract job.

I can earn more money in Direct Hire fees than contract.

Contract staffing is an administrative nightmare.

Contract recruiting is hard!

It may be a tough pill to swallow, but continuing to accept those myths as truth is doing

nothing but limiting your ability to earn more income – less income today and significantly

lower business valuations down the road.

For your business to thrive in the new marketplace amidst all the changes and impacts, you

must overcome any perceived complexities in your mind associated with contingent and

contract staffing.

Boost Direct Hire

Temp or contract assignments lead to direct hire

placements. Sometimes a conversion fee after a

trial temp period is the most practical way to

salvage a “lost” fee on a direct hire placement.

Offer Options

Many companies want the try-before-you-buy

option. Recruiters should be able to offer temp-

to-perm placements.

Overcome Fee Objections

When you get the “We don’t pay direct hire fees”

objection, you can move forward as many

companies may still have a budget for temp and

contract workers. Those earned fees can exceed

a direct hire placement fee.

Helping in Hiring Freezes

Most companies occasionally experience hiring

freezes and layoffs. The only job orders available

may be for temp or contract positions. Help your

clients solve short-term staffing needs until

budgets allow for direct hire.

Say YES Every Time!

Provide your client companies with a complete

service solution. When presented with a staffing

need (whether temp or contract) you don’t have

to send your client to the competition. You can

say YES!

Meet Demand

Due to the rise in contract labor needs, client

companies are heavily relying on the staffing

industry to manage the entire process.

Flexibility

Contract placements are easier to make because

neither party is making a “permanent”

commitment. Agreeing to contract terms can be

easier and quicker.

Hold Onto Talent

There’s a shortage of qualified talent – keep your

good candidates busy! When they’re active on

temp assignments, they’ll be available when a

direct hire opportunity arises.

New Income

Focusing only on direct hire recruitment can

cause significant fluctuations in cash flow. Fees

from contract placements are predictable,

consistent, and stable.

Improve Valuation

Mergers and acquisitions in the staffing industry

are at an all-time high. What’s the value of your

business if you wanted to sell? Develop a profit

center that can be sold by having profitable

contract division that’s valuable to buyers.

C O N T R A C T R E C R U I T I N G 7

Top 10 Reasons to Place Temporary & Contract

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Shift your perspective and nurture higher value-add relationships by offering

Contract Recruiting as part of your business service strategy.

Top 5 FAQs About Placing Temporary & Contract Workers

So the value and appeal is clear. Now you’re probably wondering how?

Where do I begin?

Let your existing clients know you offer contract services. Also you should execute a

marketing campaign, as well as maximize exposure on social media.

How do I handle payroll, insurances, compliance, and all administrative minutia?

Outsource your back office needs to experts so you can focus on revenue-producing

activities. You should be dedicating your time to building new business, not handling

administrative burdens.

Consistent revenue – Your ANNUAL income will look more like MONTHLY income

Short-term assignments get extended – This leads to consistent long-term revenue

Let your business work for you – Whether you’re at the office or on vacation

Competitive advantage – If you don’t solve your clients’ problems, someone else

will and it’s only a matter of time before a client has a contract need

Valuable enterprise – Adding contract recruiting allows you to scale your

business with the value of a database and consistent monthly receivables

What about pay rates and bill rates?

Check the website for The Bureau of Labor Statistics, which provides occupations and

compensation ranges by industry and location. Determine if your client has a max bill

rate. Submit candidates within that rate who have a range of skills. Since many

contract assignments offer no PTO or benefits, some contract workers may earn

slightly more than a direct hire employee in a similar role.

What about the Markup?

Markups vary between industries and job requirements. Industries with project driven

needs include IT and Technology, Engineering, Support Staff, Finance, and Accounting.

There are determining factors when it comes to the Markup. Consider if the job

requires a unique or “hard to find” skill set, as well as the length of time required to

locate a candidate with specialized skill.

What about Conversion Fees?

If your client company likes the contractor so much, they may decide to hire them

immediately. Be sure to protect recruiter fees by including a clause if they decide to

bring the employee on direct. Have the temp-to-perm or contract assignment terms

in writing and clarify rates, payment terms, conversion fees, etc. Conversion fees can

apply from 90-180 days of the assignment (typically no fee after 6 months). Base the

conversion fee on a prorated percent of your standard placement fee.

ConclusionMove from myths to money with Contract Recruiting!

Your prospects and clients are facing a variety of complex challenges every day. How

can you help them in new and unexpected ways? Can you offer a solution or present a

suggestion?

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C O N T R A C T R E C R U I T I N G

Learn more about placing temporary & contract workers:

call 888-270-3579 or visit www.people20.com.

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C O N T R A C T R E C R U I T I N G

This material is for informational purposes only and does not constitute advice. No reliance should be placed on the information contained and guidance should be sought from People 2.0. No information contained in this eBook may be reproduced or copied in any format without the express permission of People 2.0.

©2017 People 2.0

By understanding their challenges and distinguishing yourself and your business as a

partner to overcome those obstacles, you’ll be setting yourself up for increased

revenue-per-customer, as well as much “stickier” relationships with added value that is

a long-term competitive advantage.

Establishing your services in Contract Recruiting will help you exceed client

expectations and generate recurring revenue!

A Partner You Can Trust

Don’t be discouraged if you have not done contract placements before. Look to turnkey

solutions and partners like People 2.0. We assist thousands of independent recruiters

in generating a recurring revenue stream with contract recruiting.