Comment by Jerry Albright on August 7, 2012 at 1:12pm

Yes

Comment by Chris Connolly on August 7, 2012 at 1:34pm

I agree with you - then why aren't independents doing it? (maybe that's the real question)

Comment by Amber on August 7, 2012 at 3:31pm

Just a couple of reasons I can think of right now....

 

1. If a person or company has not done it, they will need to learn how to do it.

 

2. What type of industries/postions do they normally fill? Are these the kind that will utilize contract or contract to hire.

 

3. Do they have the ability/resources to find and attain candidates who are willing to work on these bases?

 

4. If a recruiter/agency is not going to their own payroll, etc. will they be able to get a back-office to work with them?

Comment by Bill Schultz on August 7, 2012 at 5:30pm

Some may disagree but I think it's a fairly different mindset to recruit contractors than FTE's.  As a FTE recruiter, I spend more time on the character fit than the skill set, knowing that the interviews will vet the skills sufficiently.  I think it is vice versa with contractors.  Although, I don't say no if someone wants to hire my candidate for contract work.  I just charge them 1/12 of the fee monthly.     

Comment by Chris Connolly on August 8, 2012 at 8:07am

@Amber - I guess nothing in life is easy - but with the hiring tide still leaning heavily toward contract vs. perm, I think taking the time to find the resources and the services to support the back office are worth the $$, don't you?

@Bill - I could not agree more - it is definitely a different mindset to do contract work, it is much more transactional than normal - but at the same time it's more profitable. Don't forget, you're also providing a more thorough service to your clients.  Your idea of the charging 1/12 is interesting.  Even going through a company such as mine for your back office services, you would make your perm fee back in 6 months (not 12).

Comment by Jami willson on August 8, 2012 at 8:20am

I'm also agree with your point

Comment by Sean Taylor on August 8, 2012 at 10:20am

Another option is to partner with a company established in contracting.  For example Y1 Solutions has an Affiliate Program and they can be your back office, carry insurance, do billing and collecting, back ground checks, drug testing, etc. for you. This is a way you can "learn" this business and decide if you want to take on all the back end responsibility in the future or just funnel the business through your partner.  With Affiliate Programs you work for yourself therefore you are not locked in to any one company.  You can do some yourself and funnel some through your partners. Check it out at www.y1solutions.com to learn more and see if this would be a good fit for you as an option.

Comment by Chris Connolly on August 8, 2012 at 10:27am

Good point Sean - There are plenty of companies that provide all the back office services to support contract recruiting - mine provides front office and back office tools and services as an example.

Comment by Jerry Albright on August 8, 2012 at 10:48am

While a back office approach might be a quick measure in the "oh wow - I just placed a contractor!" situation - as a business approach (if you're going after contracting) I'd recommened calling ADP and then transfering some money into a payroll account.  It's really quite simple.

Back office services really cut into your profit margin.

Comment by Chris Connolly on August 8, 2012 at 10:54am

Interesting approach Jerry - I guess if you have the money to float the contractor salary.

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