Even as the economy is starting to brighten up, client companies are still watching their budgets closely. So it's no surprise that many of them are balking at the recruiting fees that come with direct placements. As a result, some recruiters may be losing placements from client companies that are just not prepared for the large initial payout.
Other recruiters have found a creative way around this. They offer to place candidates on a contract-to-direct hire basis rather than direct. That way, a client company can pay the recruiting fee over the course of a contract assignment rather than in one lump sum.
The only difference for you is that you don't get the big, one-time fee. But getting it a little bit at a time is better than not getting it at all, right? Plus, if the contract portion lasts longer than expected, you can actually earn more. You may find that you actually like having a steady stream of income rather than the traditional peaks and valleys that come with recruiting.
So if the only thing holding potential client companies back from using your candidates is your recruiting fee, contract-to-direct hire can offer a simple solution that doesn't cost you any extra time or money.