Knowing the business of contract and contract to hire is worth billions of dollars every year, is it worth the risk and time investment for an independent recruiter to start doing contract and contract to hire?  And if so, how?

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Comment by Chris Connolly on August 8, 2012 at 11:05am

I would love to hear more about your experiences..

Comment by Jerry Albright on August 8, 2012 at 11:08am

What are your fees for payroll funding?


Comment by Chris Connolly on August 8, 2012 at 11:15am

I don't simply do payroll funding - we provide a full suite of front office tools (ATS access, job boards, job split boards) *and* payroll, billing and collections, employer of record *and* business insurance.  Clearly much more than just payroll funding.  All for somewhere between 7%-10% of the GM.  Best of all, we're NOT a franchise (I want to run my own business, not yours!) - and no monthly fees.  We make our money based on pure volume, not on the backs of every individual.

Sorry - didn't want this to be an advertisement - but I wanted to be clear when I answered his question.

Comment by Jerry Albright on August 8, 2012 at 11:16am

Thanks for the straight scoop Christopher.  I (we) appreciate it.  Sounds like a reasonable rate to me!

Comment by Chris Connolly on August 8, 2012 at 11:19am

My pleasure Jerry.  If you want to read more - check out my website -

Comment by Debbie Fledderjohann on August 9, 2012 at 2:21pm

You can run your own back-office and outsource the payroll only to a company like ADP, but just keep in mind that there are many other employment tasks you will have to undertake. If you are equipped to handle those items by yourself, it may be worth it to you to run your own back office, but many independent recruiters are not set up to handle all the tasks and responsibilities associated with employing contractors. You may want to check out a blog we ran recently about how recruiters can offer blended services, which can be found at  It provides a partial list of critical tasks that a contract staffing back-office should handle. Whether you decide to go it alone or outsource the back-office, you should make sure these critical tasks are handled.

Comment by Chris Connolly on August 9, 2012 at 2:35pm

Great point Debbie!  I'm a big fan of doing what I do best and outsourcing the rest.

I'm also a big fan of one throat to choke though - I prefer to single source.


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