Are You Ready for the Temp/Contract Staffing Boom?

There’s hardly ever been a better, or busier, time to be a recruiter in America. With a 16-year low unemployment rate and a record-high number of job openings, the demand for recruiting and staffing services is strong as this candidate driven market rolls on.

SIA just announced US staffing market predicted to grow 3% in 2018 to $126.8 billion. Total US staffing market — which includes temporary staffing as well as place and search — will rise by 3% both this year and in 2018, bringing total revenue in the industry to $145.1 billion next year, according to a new industry forecast by Staffing Industry Analysts. However, with a stronger recovery projected for place and search, the overall staffing market is likely to achieve 4% growth to reach $146.6 billion. Other positive economic factors include cutting the corporate business tax from 35% to 20%. “Despite the somewhat slower growth, the staffing market is on track to hit record size in terms of revenue in the next two years,” said Barry Asin, President of SIA. Online staffing will reach $5 billion in annual spend in 2018 from $1 billion in 2012.

Independent recruiting and staffing firms need to be prepared for the temp/contract staffing boom. If you’re not running contract/temp in your business then you need to add it to your services so you can become a full service recruiting firm for your client base and substantially increase revenue. If you’re already running both contracting and direct hire, make sure your you’ve partnered with a full service single solution back office provider who guarantees the highest profit per hour, features your brand on all forms and client and candidate communications as well as provides extensive value added services to help your business grow.

“Contracting,” “contract to hire” or “contract to permanent” placement scenarios are terms that are being spoken about more and more in today’s marketplace and it’s time to get familiar with it because it’s not going away. Often times, contract to hire is pushed by many recruiting agencies because it can be more profitable than simply placing someone directly with the company and charging a percentage of their salary.

Contract staffing opportunities exist in all verticals from entry level positions, management to executive level jobs. If you think temp/contracting is only for admin or warehouse jobs then you need to take another look at the marketplace. Just like your clients see the value in outsourcing recruiting services, today’s companies are also seeing the value in outsourcing the back office services on W2’s. This is a prime time opportunity for independent recruiting and staffing firms to be ready to market contract staffing services to their new and existing clients.

The bottom line is that contract staffing is only growing, it’s extremely profitable and it’s easy to add to your current recruiting firm’s services.

Learn more at www.ARGbackoffice.com.

How to Navigate Back Office Services Costs

There’s hardly ever been a better, or busier, time to be a recruiter in America. With a 16-year low unemployment rate and a record-high number of job openings, the demand for recruiting and staffing services is strong as this candidate driven market rolls on.

SIA just announced US staffing market predicted to grow 3% in 2018 to $126.8 billion. Total US staffing market — which includes temporary staffing as well as place and search — will rise by 3% both this year and in 2018, bringing total revenue in the industry to $145.1 billion next year, according to a new industry forecast by Staffing Industry Analysts. However, with a stronger recovery projected for place and search, the overall staffing market is likely to achieve 4% growth to reach $146.6 billion. Other positive economic factors include cutting the corporate business tax from 35% to 20%. “Despite the somewhat slower growth, the staffing market is on track to hit record size in terms of revenue in the next two years,” said Barry Asin, President of SIA. Online staffing will reach $5 billion in annual spend in 2018 from $1 billion in 2012.

Independent recruiting and staffing firms need to be prepared for the temp/contract staffing boom. If you’re not running contract/temp in your business then you need to add it to your services so you can become a full service recruiting firm for your client base and substantially increase revenue. If you’re already running both contracting and direct hire, make sure your you’ve partnered with a full service single solution back office provider who guarantees the highest profit per hour, features your brand on all forms and client and candidate communications as well as provides extensive value added services to help your business grow.

“Contracting,” “contract to hire” or “contract to permanent” placement scenarios are terms that are being spoken about more and more in today’s marketplace and it’s time to get familiar with it because it’s not going away. Often times, contract to hire is pushed by many recruiting agencies because it can be more profitable than simply placing someone directly with the company and charging a percentage of their salary.

Contract staffing opportunities exist in all verticals from entry level positions, management to executive level jobs. If you think temp/contracting is only for admin or warehouse jobs then you need to take another look at the marketplace. Just like your clients see the value in outsourcing recruiting services, today’s companies are also seeing the value in outsourcing the back office services on W2’s. This is a prime time opportunity for independent recruiting and staffing firms to be ready to market contract staffing services to their new and existing clients.

The bottom line is that contract staffing is only growing, it’s extremely profitable and it’s easy to add to your current recruiting firm’s services.

Learn more at www.ARGbackoffice.com.

How to Explain Outsourcing Your Back Office to Clients

Outsourcing (also sometimes referred to as “contracting out”) is a business practice used by all companies to reduce costs or improve efficiency by shifting tasks, operations, jobs or processes to an external contracted third party for a significant period of time. The functions that are contracted out can be performed by the third party either onsite or offsite of the business.

Outsourcing can free up cash, personnel, facilities and time resources for a staffing firm. It can result in cost savings from lower labor costs, taxes, energy costs and reductions in the cost of services. In addition to cost savings, a staffing firm may also employ an outsourcing strategy in order to focus on its core business competencies. This allows the company to devote more resources to client development and candidate sourcing, which can improve efficiency and increase its competitiveness. A company may also choose to outsource in order to avoid government regulations or mandates, such as environmental regulations or safety regulations and requirements.

The ‘non-core’ functions of recruiting and staffing services, which includes back office services, should be outsourced to a back office organization for whom that function is their core business competency, further benefiting the business through the improved management of those functions. The right back office partner will handle your full back office requirements from A to Z including employer of record, payroll services, funding, onboarding, benefits, reporting, etc. Your back office partner will remove the financial risk, liability and headache of running full back office services. This solution should be delivered under your company branding by a trusted back office provider with decades in the industry.

Recruiting and staffing firms are hired to find the best candidates for client companies and to do so in the shortest amount of time possible with little to no headache on the part of the client. This is why they pay fees ranging from 20% to 30% of the first year’s compensation. But do to the high demand and complex nature of contract staffing, it’s important that recruiting and staffing firms have a reliable go to partner to handle your back office solution for your clients under your companies brand.

Do not be concerned about how you will explain your back-office partner to your client companies. Like you, they utilize outsourcing in their own business to run more efficiently therefore this concept will never fall on deaf ears. Simply explain to your company client that your staffing firm utilizes a back office partner who’s core competency is devoted to running back offices services for your firm and who is exclusive to the recruiting and staffing industry. Let them know that you will remain their main point of contact for all their recruiting and staffing needs.

The right back office partner will work seamlessly with your recruiting and staffing business utilizing a recruiter centric approach that will allow you to maintain full control and identity in the eyes of your company clients.

Learn more at www.ARGbackoffice.com.

4 Reasons to Say YES to Contract Staffing

The staffing industry, comprised of more than 20,000 staffing firms and nearly 15 million staffing employees, contributes $150 billion to the U.S. economy through temporary and contract staffing, recruiting and permanent placement, outsourcing and outplacement, and human resource consulting.

Every day and in virtually every place that people work, staffing businesses send more than three million employees to work in America across all industries. Since 2009, this is a segment of third party recruiting that continues to grow and evolve. If you haven’t yet added contract staffing services to your business, here are four reasons why you should reconsider.

1. Increase Annual Revenue. Isn’t this the bottom line to any business? Saying yes to contract staffing is saying yes to more sales and profitability. With the increased demand for contract staffing with no end in sight, it’s time to stake your claim.

2. Be a Full Service Agency. If it hasn’t already happened then it’s just a matter of time before your direct hire clients ask you to fill a contract staffing need. Not to mention all the staffing openings you are not asking for and missing out on. The ability to offer your clients retained, contingency and contract staffing makes you a triple threat and a greater asset to your clients.

3. Become Recession Proof. We all remember 2009, even though we would all like to forget. The fact is our economy is cyclical and in down times contracting is the go to choice for many companies across all industries and can be the difference between a good year and a bad year.

4. Sell your firm for more money. The earlier you start building your contract staffing pipeline the more time you have to grow your contracting book of business. This can be a major revenue source when you’re ready to sell your business.

Companies depend on staffing employees to get through busy seasons and to support major projects, new clients, and business growth. The flexibility staffing provides gives companies a competitive edge in matching resources and payroll to the needs at hand. More and more, companies are placing an increased premium on more flexible and agile workforces—and staffing plays a vital role in that strategy.

Time has shown that contract staffing isn’t just good for our economy; it is an essential part of the recruiting industry that provides vital flexibility and support to businesses, and opportunities and flexibility for employees. And as the economy continues to evolve, with information and connectivity coming to dominate its core, the contract staffing market will continue to pay dividends to all recruiting firms who say yes to contract staffing.

The best news is that it’s easy to add to your current services using a turn-key back office partner that will handle all the financial risk, liability and headaches while you enjoy the four benefits we’ve discussed. There is no better time to say yes to contract staffing!

Learn more at www.ARGbackoffice.com.