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Independent Recruiters: Is It Time to Offer Fixed Contract Services?

Posted by Anna Mastrandrea

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Oct 1, 2018 9:00:00 AM

Independent_Recruiters_Is_It_Time_to_Offer_Fixed_Contract_ServicesAs an independent recruiter, you’ve no doubt been watching the growth of the gig economy and the increase in demand for flexible labour with great interest.

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It seems more and more employers are turning to outsourced solutions and increasing their reliance on recruiters when it comes to hiring. For independent recruiters, however, the picture hasn’t been as rosy. As employers increasingly employ recruiters to help them manage the recruitment and hiring processes, they’ve been turning less to independent recruiters and more to large agencies.

These large agencies tend to specialize in fixed contract services, while independent recruiters have traditionally offered permanent staffing services.

With the shift in the market, an independent recruiter like yourself is no doubt asking if it’s time to offer fixed contract services.


Why Should Independent Recruiters Offer Fixed Contract Services?

The first question you have is likely why you should consider offering fixed contract services in the first place. This would put you in direct competition with the large agencies.

There’s little doubt the demand for the services offered by an independent recruiter has diminished in recent years. In turn, many recruiters have been looking for new avenues and services to offer their clients and continue growing their businesses.

Since this shift away from permanent staffing is largely attributed to the demand for more temporary workers, a recruiter could retain their current customers and even attract new ones if they began offering fixed contract services as well.


Going Toe to Toe with Large Agencies

One of the reasons an independent recruiter may opt not to offer fixed contract services is because this puts them in direct competition with large agencies. Since the agencies specialize in this area, you may think it’s wiser to concentrate on your own area of expertise.

Many of your existing clients would like to continue working with you versus one of the large agencies. They may find your personalized service ensures better outcomes, or they may prefer the close relationship they have with you. They may even trust you more.

If you don’t offer fixed contract services, however, and they need flexible staffing solutions, they’ll be forced to turn elsewhere. By offering these services, you can give your clients more reason to stick with you.

You may not be able to truly take on the large agencies in a head-to-head battle, but many clients would opt for the advantages of working with independent recruiters.


It’s Easy to Offer Fixed Contract Services

Another thing that holds independent recruiters back from offering fixed contract services is the issue of administration.

With permanent staffing, you’re rarely responsible for payroll and other HR paperwork. The hiring client takes on all of that responsibility when they agree to bring the employee aboard in a permanent position.

With fixed contract services, things are vastly different. The recruiter is expected to adopt the administrative role. That means you’re responsible for payroll, health and safety, compliance, and other HR tasks related to the employee.

For independent recruiters, this can be a serious commitment. It may overtax your administrative resources. Luckily, it doesn’t have to be this way. In fact, it can be easy to offer fixed contract services.


Partner with a Back-Office Solutions Provider

If you want to offer fixed contract services to your clients but feel it may not be possible due to the administrative responsibility, consider teaming up with a back-end office solution provider. They can help you with the administrative side of things.

This, in turn, will allow you to focus your efforts on tasks such as recruitment, marketing, and more.

If you want to keep growing your business, it’s probably time to consider offering fixed contract solutions.


Unlock a Lucrative Revenue  Stream With Contract Staffing

Topics: Independent Recruiters

Anna Mastrandrea

Anna Mastrandrea is the team lead of the payroll department at The Staffing Edge. For over 10 years, Anna has been providing the highest level of customer service to our members. Anna is an important part of our back office operations, running payroll for all of our members assignment employees, ensuring all proper payroll deductions have been set up, billing clients, and processing record of employment and filings to Service Canada. Her goal is to make sure all of our members assignment employees are paid properly, and most importantly, on time. Anna’s passion for challenges, learning, and problem solving makes her a great asset for our members, as no one member’s situation is ever the same. When Anna is not on the job, she enjoys spending time with her family, indulging her love for great wines, and playing volleyball.
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