Whether you're expanding your team to meet growing client demands or seeking specialized expertise for a particular project, contract recruitment can be a strategic solution.
Contract recruitment is becoming more popular in many industries, especially in accounting and finance, where there is a high demand for skilled professionals who can handle complex and changing tasks. According to a report by the American Staffing Association, the staffing industry generated $152.5 billion in revenue in 2019, with 17% of that coming from the finance and accounting sector. The same report also found that 3.1 million temporary and contract workers were employed by staffing agencies every week in 20191.
What does a contract recruiter do?
Contract recruitment, often facilitated by staffing agencies, is a dynamic approach to securing temporary talent for specific roles within your organization. These roles can range from short-term assignments to long-term projects. Contract recruiters play a pivotal role in this process, acting as intermediaries between employers and job seekers.
Understanding Client Needs
Contract recruiters begin by thoroughly understanding the needs of their clients, which, in this context, are accounting and finance firms. They work closely with your firm's hiring managers to identify the skills, qualifications, and experience required for the job.
Sourcing Talent
Once the job requirements are clear, contract recruiters leverage their extensive networks and resources to source suitable candidates. They may tap into their database of pre-screened professionals or advertise job openings through various channels.
Screening and Evaluation
Contract recruiters conduct initial screenings and interviews to assess candidates' qualifications, skills, and cultural fit with your firm. This ensures that only the most qualified individuals are presented to your hiring team.
Presenting Candidates
After vetting potential candidates, contract recruiters provide you with a shortlist of individuals who meet your criteria. This saves your firm valuable time and resources compared to traditional hiring processes.
Negotiating Contracts
If your firm decides to proceed with a contract candidate, the recruiter will facilitate the contract negotiation process, ensuring that all terms, including compensation and project duration, are agreed upon.
Onboarding
Contract recruiters also assist with the onboarding process, helping candidates integrate seamlessly into your firm's work environment.
Ongoing Support
Throughout the contract, recruiters maintain contact with both the candidate and your firm to address any concerns or issues that may arise.
A contract recruiter may also provide additional services, such as:
- Conducting background checks and drug tests on candidates
- Handling payroll and benefits administration for contract workers
- Providing training and coaching to contract workers
- Managing performance and feedback of contract workers
- Resolving any issues or disputes that may arise between contract workers and clients
How Does Contract Recruitment Work?
Contract recruitment, as the term suggests, involves hiring individuals on a temporary or contract basis, typically for a specified period or project. Here's how it works:
Identifying the Need: Accounting and finance firms identify the need for additional talent. This could be due to a seasonal workload increase, a specific project that requires specialized skills, or a temporary gap in staffing.
Partnering with Staffing Agencies: To streamline the process, many firms partner with staffing agencies that specialize in contract recruitment. These agencies have access to a pool of qualified candidates and can quickly match them with your firm's requirements.
Defining Job Requirements: Your firm collaborates with the staffing agency to define the job requirements, including the skills, qualifications, experience, and the expected duration of the contract.
Candidate Sourcing: The staffing agency's contract recruiters use their networks and resources to source candidates who meet your criteria. This includes both active job seekers and passive candidates.
Candidate Selection: The agency's recruiters conduct rigorous screening and evaluation processes to identify the best-fit candidates. They then present a shortlist to your firm for consideration.
Contract Negotiation: If your firm decides to proceed with a candidate, the staffing agency handles the contract negotiation process, including salary, benefits, and other terms.
Onboarding and Placement: Once the contract is finalized, the candidate is onboarded and placed in your firm to begin work on the specified project or assignment.
Project Completion: When the contract period or project is completed, the candidate's engagement with your firm concludes. Depending on the agreement, there may be an option to extend the contract or convert the candidate to a permanent role.
Is Contract Recruiting Worth It?
While contract recruitment can have some challenges, specially when it come to employee’s misclasifications, usually this type of hiring offer many benefits to both employers and workers, depending on their goals and preferences.
Flexibility
Contract recruiting allows employers to adjust their workforce according to their changing needs and demands. They can hire contract workers for specific projects, peak seasons, or temporary vacancies, without committing to long-term employment. Contract workers can also enjoy more flexibility in their work schedules, locations, and assignments. They can choose when, where, and how they want to work, and switch between different clients and projects as they wish.
Cost-effectiveness
Contract recruiting can help employers save money on hiring costs, such as advertising, screening, training, etc. They can also reduce their overhead costs, such as payroll taxes, benefits, insurance, etc., by outsourcing them to the staffing agency. Contract workers can also benefit from cost-effectiveness by earning competitive rates for their skills and experience. They can also take advantage of the benefits offered by the staffing agency, such as health insurance, retirement plans, etc.
Access to talent
Contract recruiting can help employers access a large pool of qualified and diverse talent that may not be available through other channels. They can tap into the expertise and experience of contract workers who have worked in different industries, organizations, and roles. Contract workers can also access more opportunities and exposure by working with different clients and projects. They can expand their network, learn new skills, and enhance their resume.
Do contract recruiters get commission?
Contract recruiters typically get paid based on a commission structure that varies depending on the staffing agency they work for. A commission structure is a way of compensating recruiters for their services based on the results they achieve. There are different types of commission structures that recruiters may encounter, such as:
Flat fee: A flat fee is a fixed amount that the recruiter gets paid for each placement they make. For example, a recruiter may get paid $5,000 for placing a candidate in a position that pays $100,000 per year.
Percentage: A percentage is a proportion of the salary or revenue that the recruiter gets paid for each placement they make. For example, a recruiter may get paid 20% of the first year’s salary of a candidate they place in a position that pays $100,000 per year.
Combination: A combination is a mix of flat fees and percentages that the recruiter gets paid for each placement they make. For example, a recruiter may get paid $2,000 plus 10% of the first year’s salary of a candidate they place in a position that pays $100,000 per year.
It's important to note that the commission structure should not compromise the quality of candidates presented to your firm. Reputable staffing agencies prioritize matching candidates based on qualifications and fit rather than solely on commission incentives.
Conclusion
Contract recruitment, facilitated by staffing agencies, is a valuable resource for accounting and finance firms seeking flexible and specialized talent solutions. By understanding the role of contract recruiters, the mechanics of contract recruitment, and the potential benefits and considerations, your firm can make informed decisions about incorporating contract recruitment into your hiring strategy.
Ultimately, contract recruitment can provide the agility and expertise needed to thrive in today's competitive business landscape.
