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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.