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Why Expand into Contract Staffing?

Contract staffing is often said to be both confusing and time-consuming, which is why many firms opt to place their resources solely into permanent recruiting. We’re here to tell you that it doesn’t need to be that way.

Adding contract recruiting to your services, alongside your already successful permanent recruitment, provides a competitive edge as well as business stability. There is an increasing demand for flexible workforce solutions due to a dynamic marketplace and a need for project specific specialists, particularly in a turbulent economy.

 

Strategic Decision for Growth

Contract staffing opens up new revenue streams and provides a safeguard against the ups and downs of permanent placements. This approach allows companies to expand their reach to a broader client base and talent pool, improving their market position and increasing their reputation.

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Business Resilience through Contract Staffing

Making your business resilient to economic downturns is vital as the permanent recruitment market is often volatile. Contract staffing counterbalances the peaks and troughs by providing another stream of revenue helping to maintain a regular and stable cash flow. This makes it easier for you to continue to grow and expand your business, regardless of market fluctuations.

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Financial Potential of a Contract Staffing Business

If you are a business owner of a recruiting firm and you eventually want to sell your business, there is literally an exponential difference in the cash you’ll receive for a permanent only recruiting business versus a recruiting business that includes filling contract roles. All other things being equal, the contract staffing business is going to sell for a much higher multiple compared to a permanent only business. For example, if you sell a direct hire only recruitment agency, you might get 1X or 2X the amount of its yearly earnings before interest, taxes, depreciation, and amortization (EBITDA). But if you sell a contract staffing company, you could get up to five times its yearly EBITDA or even more. This big increase in possible earnings is a clear financial upside for people who own businesses and are thinking about selling.

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Challenges Faced by Permanent Recruitment Staffing Firms

Staffing firms who focus solely on permanent recruitment have to grapple with challenges, particularly surrounding cashflow and increasing their business value. The cyclical and unpredictable nature of permanent placements frequently leads to cash flow instability. Contract staffing can be a fantastic way to overcome this issue by introducing an additional revenue stream. However, diversifying your services, especially into contract staffing, brings legal, compliance, and administrative complexities.

During economic downturns, the permanent recruitment market often slows down significantly, which not only reduces the immediate revenue for permanent staffing firms but also the value of the business as a whole.

While these challenges seem daunting, with the right partner these problems can transform into opportunities for growth and diversification. 

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Embrace Contract Staffing with Agile Partnering

The Power of Contract Staffing

The Power of Contract Staffing

In an ever-changing economic landscape, businesses need dynamic solutions to ensure stability. Contract staffing is an excellent tool to face these challenges, offering a more predictable and steady revenue stream. With contract staffing, firms can provide comprehensive and flexible staffing solutions, which are especially attractive in times of economic downturns. However, the transition to contract staffing can present legal, compliance, and administrative complexities, particularly for agencies used to permanent placements.

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The Agile Partnering Solution

The Agile Partnering Solution

Agile Partnering steps in with a tailored solution to make contract placements easier. As a specialized Employer of Record (EOR), we offer a seamless way for permanent staffing firms to integrate contract staffing into their business. Our EOR services enable your firm to expand into the contract recruitment market without the burden of developing your own expert back office with the relevant legal and insurance protections.

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How Our EOR Service Works

How Our EOR Service Works

As your EOR, we assume legal and administrative responsibilities, including payroll funding and processing, tax compliance, and risk management. This allows your staffing firm to focus on talent acquisition and client service, removing the barriers to entering the contract staffing market. Our service is designed for your convenience, ensuring compliance, risk mitigation, steady cash flow, and improved agency efficiency through delegated administrative tasks.

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This is easily the best on-boarding company I've ever worked with.

Cassandra

Contract Worker

A More Profitable Future is Just a Call Away

Elevate your staffing firm's potential by contacting Agile Partnering today and embracing the lucrative contract staffing market.
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