(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.)
Contrary to popular belief, there is no reason that a recruiter should have to choose between direct and contract. As we discussed in the previous post, contract job orders don't take a lot of extra time if you use a contract staffing back-office for your contract placements.
In fact, contract staffing often leads to MORE direct-hire business. For your current clients, if they know you can handle their contract staffing needs in addition to direct-hires, they are likely to make you a sole-source provider, so you won't have to compete with another recruiter for job orders - contract or direct. And if you get your foot in the door with a new client because of your contract staffing business, you could very likely end up picking up their direct-hire business as well.
Many companies will try to streamline the number of recruiters they work on based on who gives them the most value. If you would like to be that recruiter you may want to consider adding contract staffing to your business model.