1.) Your Competitors Just Doubled Their Profits.
Privately owned staffing companies have more than doubled their net profit margins since 2009 and have experienced nearly 21% sales growth over the last 12 months. The Contingent Workforce has more than DOUBLED since 1990 and with companies shifting towards having a more flexible workforce, this model of employment looks set to dominate the market over the next decade or so. Investing the time into the temporary staffing side of your business now will help you get ahead of your competition.
2.) Secure Your Future With A New Revenue Stream.
Although the amount of money recruiters can make in one hit from a direct placement is undeniably great, the numbers of opportunities recruiters are getting to make those kinds of placements are becoming fewer and further between. Companies are still reluctant to hire full-time internal employees so investing some time into growing your temporary placement business could help secure your future. Your contractors will make you money every hour they work, so you’ll receive a steady income regardless of whether you make a permanent placement that week.
3.) You Can Make More Money With Temp Staffing Than In The Past.
A temp is no longer “just a temp” these days. Many temporary workers are highly paid contractors, project-based workers and consultants on high bill rates and many are VP level or above. The biggest areas of growth in the contingent workforce are Software Developers, IT workers and Engineers earning upwards of $100 an hour. With just one of these workers out in the field, you could make $20 per hour or $3200 a month on that one individual. If this contractor has a 6 month assignment, that could translate into around $20,000. If you had 5 of these folks out at any given time, you could make in the neighborhood of six figures in that same 6 month period. In a year, that could total to around $200,000 in gross profits. Think temps are worth turning your attention to now?!
4.) You’ll Win More Business From Existing Clients.
Providing high-quality contractors to your existing clients can help you serve them better by enabling them to work around hiring freezes and offering temp-to-hire placements so they can “try before they buy” candidates who they might be nervous about hiring immediately on a direct hire basis. The best thing is, if they decide to convert the worker to a full-time employee, you can get paid twice! Also, opportunities sometimes arise for a project where a client may want XXX number of workers. Now you can capture those opportunities because you no longer have to worry about cash flow, insurances, HR support, etc.
5.) It’s really, really simple and doesn’t take much time.
In our conversations with recruiters, we often hear “Yeah, I know I SHOULD pay more attention to growing the temp staffing side of my business, but I just don’t have the time”. In fact, all it involves is asking your existing clients if they are in need of any temporary help and telling them that you are ready and willing to help. Around 90% of U.S. companies use temporary workers so your clients are already using contingent workers - you’re just not getting paid for it, yet!
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