“There isn’t any money in the budget." "We are under a hiring freeze right now.”
How many times have you heard these objections? Or how about "We'd love to use you, but we just can't afford the placement fee right now?" In this economy you may hear “no” to a direct hire more than you like. But there is another option you could consider that helps the client and is easier on the budget: a contract-to-direct hire solution. This allows the client to get the skill set they need and “try-out” the candidate.
With this option your client will pay the placement fee over time rather than one lump sum. In a contract-to-direct hire situation, the placement fee can be part of the weekly invoice. Consequently, the fee is paid in small increments over time instead of one large, lump sum payout.
Using the contract-to-direct option has helped many recruiters we have worked with overcome placement fee objections. But if you are going to use this technique, you may want to use a contract staffing back-office to employ the candidates during their contract period. Otherwise, you will be responsible for payroll funding and processing, Workers' Compensation, Unemployment, invoicing and collections, etc. A contract staffing back-office can handle all those tasks for you so you can concentrate on closing your next placement!