(This series focuses on the most common reasons we’ve heard for why recruiters don’t want to offer contract staffing. These reasons are based on common misconceptions about contract staffing and prevent recruiters from reaping the benefits of offering contractors to their clients.)
Reason #4: I don’t have time to deal with the hassles of contract staffing
Many recruiters believe that having contractors is going to cost them a lot of extra time and is going to cause them nothing but headaches. Well, if they are planning to handle all of their own back-office tasks, they could be right. Unless they choose to outsource the back-office tasks, the recruiter must find the time and resources to handle the following responsibilities, and more:
- Employee new hire paperwork
- I-9 and E-Verify
- Background checks
- Timesheet collection
- Legal contracts with the contractor and the client company
- Payroll funding
- Weekly payroll processing with direct deposit
- State and federal tax withholdings
- Employee benefits, including medical, dental, vision, and life insurance and 401(k)
- Workers’ Compensation
- Unemployment insurance
- Client invoicing and collections
- Certificate of Insurance
Not only are those responsibilities time-consuming, they are tedious and come with some with legal risk, which is why many recruiters shy away from contract staffing. Fortunately, there is an alternative. A quality contract staffing back-office can take on all of those risks and responsibilities. Therefore, you can reap all the benefits of contract staffing (steady income, client loyalty, increased sales, etc.) without all the hassle. Essentially, all you need to do is what you have always done – get the job order and recruit the candidate.