START WITH WHY

START WITH WHY

Judy Collins | August 9, 2022

You have the option of providing temp and contract placements to your clients. But why should you since your direct-hire business is doing fine? This article will explore three reasons why adding temp and contract placements would be beneficial to your business model. These reasons include keeping your client happy, building an additional revenue stream, and improving the strength of your business.

Clients can be fickle, and clients can be lazy. If your services do not fully cover their needs, they can easily move to your competitors. Your client may develop a need for temp and contract positions and will expect you to help them. If you do not respond in a flexible and timely manner, your competition may step in. You can counter this threat by getting set up to handle temp and contract placements when the need arises. Present your clients with options and ideas to solve their workforce needs. There may be opportunities for you to put idle workers back on the job. The turmoil in the workforce marketplace creates a huge source of potential placements, both direct-hire and contract. There may be a lot of people who find that they now prefer working remotely and don’t want to go back to an office environment. Matching up these workers with new remote-friendly employers presents an opportunity. Stay alert to these opportunities and help your clients take advantage. Your client will have no need to look elsewhere.

Your direct-hire business is likely doing well, and your efforts are rewarded with every position you fill. You can improve on this by adding another income stream via temp and contract placements. The diversity of this additional income provides a cushion to help you ride through slack periods in the workforce marketplace. Little extra effort is required to do this since you are already vetting multiple candidates in the process of matching up the candidates with available direct-hire positions. This candidate pool provides you with the resource you need to assist your clients with temp and contract placements. You will likely encounter applications suitable for temp and contract personnel. So, with minimal extra effort, you can monetize those encounters and generate an income stream that lasts as long as the temp or contract assignment, some of which may go on for years! You need not be put off by the minutiae of temp and contract placements either, since you can easily partner with a back-office provider who will handle the details for you. You make the placement and begin to collect revenue.

You can improve the strength of your business by adding temp and contract placements to your business model. Regardless of your success with direct-hire placements, your business basically disappears when your direct-hire placements stop. Without other revenue streams your business is something of an empty shell and you will have no diversity of income, no ability to ride through slack periods, and no effective value should you decide to sell. An income stream generated by temp and contract placements creates value for a potential buyer. Of course, the more successful you are with temp and contract placements, the greater the income stream will be and therefore your business will be stronger, and its sale will command a higher price. An excellent source of information on this topic and its rationale can be viewed in Barb Bruno’s Good As Gold Training webinar “Add Additional Sources of Revenue To Your P & L”. And don’t forget: if a contract position is converted to a direct-hire you can earn a conversion fee which is a further cash infusion!

Partner with a back-office provider to give you the flexibility of responding immediately to your client’s needs and relieve you of the headaches of handling temp and contract placements. Back-office providers typically keep up with the ever-changing rules and regulations issued by the federal, state, and local jurisdictions. These services can be provided immediately if you are set up in advance. You can keep your clients happy, build an additional revenue stream, and improve the strength of your business if you START WITH WHY.

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