Time, money, and risk are three key factors for recruiters to take into account when considering outsourcing their temp and contract placements. There are many opportunities in the job market to make temp and contract placements and taking full advantage can result in improvement to your bottom line. Don’t pass up these opportunities to diversify your book of business and create an additional income stream by outsourcing your temp and contract placements!


Time is your most valuable resource. You spend most of it trying to match up good direct hire candidates with your clients. If successful you make a great one-time fee. In the vetting process you will identify candidates who may be a good fit for a contract position. You can recover some benefit from that time spent by making contract placements with these candidates.


Having said that, we recognize that handling contract workers in house is quite time consuming. Someone on your staff must manage the on-boarding of new employees, collect time sheets, process weekly payroll, make timely tax deposits, issue annual W-2’s, monitor unemployment and workers comp claims, and generally manage the back-office services needed for typical employees. Use your time wisely by outsourcing these headaches to a third-party back-office provider, then you can focus your effort where it counts most: matching up candidates with jobs!


Money is the most important driver of your enterprise. Outsourcing your temp and contract placements can save you money in several ways. Protect your in-house unemployment rating (and keep your rates low) by outsourcing. You can save money by not having to carry workers’ comp in multiple states. Other savings are realized when you refocus your internal staff on tasks such as expanded marketing or customer service; tasks that give you greater returns than administrative work. Payroll and back-office support, while necessary, are not income generators. Done incorrectly these functions can cost you dearly, if for example, you must take the time away from your primary focus to respond to an IRS audit triggered by incorrect employee classification (W-2 vs. 1099) or mishandling of tax deposits.


Risk is ever-present in our lives and business enterprises. Minimizing risk is something we should all practice and taking unnecessary risk should be discouraged. By outsourcing your temp and contract placements you can move your risk in many areas to a third-party back office provider. You can relieve yourself of the onus of keeping up with all local, state, and federal payday laws; you can be assured of providing your placements with required sexual harassment training; and you can avoid the risk of losing business by being eligible to offer your services nationwide without additional imposed costs.

You can outsource your temp and contract placements by partnering with a back-office provider. These services can be provided immediately if you are set up in advance. Save your time, keep your money, and minimize your risk with the THREE REASONS TO OUTSOURCE.

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NAPS Harold B. Nelson Lifetime Achievement Award Winner