Why Recruiters Should Become Sole-Source Providers NOW!

Recruiters who can satisfy ALL of their clients' staffing needs as sole-source providers could find themselves in demand as companies look to streamline hiring processes.

Just as employers utilize contractors to run leaner and cheaper, they are also looking to cut costs and improve efficiency in their hiring processes. They are achieving those goals by adopting a "blended workforce" approach, according to a recent survey commissioned by Randstad Sourcelight and conducted by the Aberdeen Group.

In other words, companies are starting to manage hiring for traditional employees and contractors under the same programs. In the past, direct hiring was typically handled under the human resources function while contract staffing was driven by Procurement, Purchasing, and the actual hiring manager with the specific need.  The blended workforce approach calls for a collaboration of all of these departments as well as the overall business division (operations or C-Suite level). By consolidating these efforts into one program, companies are striving to save money, improve their visibility so they can attract the highest quality talent, and improve productivity.

But this blended workforce approach is about more than just consolidating companies' in-house efforts. Previously, it was common for companies to use different recruiting or staffing firms for their direct hire and contract job orders. Under the blended workforce model, companies are looking to combine these efforts under a single vendor, otherwise known as a sole-source provider.

If you are already a sole-source provider that is able to handle both direct and contract placements, this is very good news for you. You could end up being the main vendor for some of your clients.

On the other hand, this could be bad news if you don't offer contract staffing services. The report states that half of companies are already utilizing a blended workforce approach, and that percentage is expected to increase over the next 12 months. If your clients decide to adopt this approach, they may turn to another firm that can also provide contractors in addition to direct hires.  

But there is good news for you as well. It is easy to add contract staffing to your business model when you utilize a contract staffing back-office. The back-office becomes the legal employer for your contractors and handles all the financial, legal, and administrative details of a contract placement. In fact, when you outsource the back-office tasks, the process for contract job orders is much the same as direct hire placements.  You get the job order, you locate the candidates, and you negotiate the rates. After that, the back-office jumps in to handle the rest. With a contract staffing back-office, you can literally add contract staffing to your business model and become a sole-source provider in a matter of hours.

Debbie Fledderjohann is the President of Top Echelon Contracting, Inc.

Views: 187

Comment by Valentino Martinez on March 15, 2013 at 2:16pm

Couldn't agree more.  I went solo in 1995 and never looked back.

Comment by Debbie Fledderjohann on March 18, 2013 at 11:18am

That's great, Valentino!  Do you have any advice for recruiters who may be hesitant to add contract staffing to their business models?

Comment by Valentino Martinez on March 19, 2013 at 12:59am

Well, like pretty much anything related to career choices -- it's not for everybody.  Like you point out --the challenges and the opportunities are there for the taking.

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