Can a "One-Man Show" Offer Both Direct and Contract Services?

When adding contract staffing services to your existing direct-hire recruiting business, you must first decide if you are going to handle the back-office tasks (payroll, benefits administration, employment paperwork, invoicing, etc.) in-house or if you are going to outsource them.

Many small firms or "one-man shows" choose the latter. After all, it can take the average recruiter one to six months to get set up to handle contract staffing issues in-house.  Not only that, it takes one or two days every week to keep up with the timesheet, payroll, and invoicing issues.  By outsourcing these tasks, recruiters can take on contract opportunities without taking away from their direct-hire business.

A contract staffing back-office can handle all the administrative, financial, and legal detailsassociated with contract placements.  The back-office should also handle all the weekly tasks and actually become the contractors’ legal employer. 

If you decide to outsource these tasks rather than handle them in-house, you will want to find an experienced contract staffing back-office with a well-documented history, an impeccable reputation, and positive referrals and testimonials.  Remember that your back-office is a reflection of you, the recruiter.

Here is a partiallist of the critical tasks that should be provided by a contract staffing back-office: 

  • Bill rates and pay rates assistance
  • Contract generation
  • Employee paperwork
  • Payroll funding and processing
  • State and federal taxes
  • Workers’ compensation
  • Unemployment
  • Invoicing and collections
  • Background checks
  • Certificate of Insurance
  • Benefits – medical, dental, vision, 401(k), etc.

If you use a quality contract staffing back-office, you can easily offer both direct and contract staffing services to your clients, regardless of your size. You can enjoy the extra income and client loyalty that come with contract staffing without having to worry about all of the administrative details tied to a blended service business model. In short, you will be able to focus on what you do best – recruiting.

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