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Talent Access, World of Work

Contract Staffing Is Soaring. Are You Missing Out?

October 6, 2021 ──── MRINetwork
Contract Staffing, Employment Trends, Recruiting Best Practices

Contract Staffing Is Soaring. Are You Missing Out?

Contract Staffing Is Soaring. Are You Missing Out?

“Imagine a world where contingent work is as common as traditional employment…” In 2010, global technology platform Intuit inked this proposition, outlining 20 trends shaping the next decade. Number 14 on the list focused on work: “Work shifts from full-time to free agent employment.” Researchers predicted that contingent hiring would accelerate rapidly, growing to more than 40 percent of the U.S. workforce in 2020.

Indeed, 2020 was a year of rapid expansion in on-demand staffing. A recent study saw a 34 percent surge in the number of independent workers in the U.S., suggesting the Great Resignation was actually a “Great Realization”:

  • In 2021, the number of independent workers rose to 51.1 million workers (up 34 percent from 2020)
  • 77 percent of independents reported they were highly satisfied, the highest level in 11 years of data
  • 68 percent of full-time independent workers reported working independently was more secure than a traditional job

Like workers, employers also seem favorable to flexible work arrangements. One report found that 32 percent of organizations are replacing full-time employees with contingent workers. Why? As Forbes reports, employers are eager to shrug off the burden of compliance, time-intensive vetting and screening, and unpredictable labor needs. Sourcing contingent workers from staffing agencies allows companies to ramp up and down quickly, while saving on costs. As employers face growing skills gaps and are unable to upskill rapidly, many are content to “rent” talent for a premium.

Are you ready to meet the demands of your clients?

A Golden Age for Contract Staffing

Is flexible staffing here to stay? Absolutely. The World Economic Forum finds that working nine-to-five for a single employer or being on the payroll is no longer a reality for millions of people. 70 percent of executives say they expect to use more temporary workers and contractors in the future, according to a study by McKinsey.

Within MRINetwork, recruiters and search firms are seeing unprecedented shifts — and growing opportunities. In 2020, Thavi Louanlavong, President at Siter-Neubauer & Associates, achieved contract staffing commission numbers never before realized at MRI. Other firms are seeing lucrative spikes in revenue, thanks to the addition of contract staffing capabilities.

Contract Staffing Benefits for Recruiters & Search Firms

In today’s hot talent market, many recruiters are leveraging talent scarcities to open up conversations about non-permanent staffing solutions. Firms are also scoring permanent placements through contract opportunities. 

Contract staffing offers substantial benefits for firms, including:

  • The ability to offer total talent access solutions to clients and candidates
  • Steady, recurring revenue to build and sustain the business
  • Ongoing engagement with clients to increase visibility for future business

“We’re all accustomed to our dreaded draws. You get a contractor in there, you’re not drawn. You’ve got income every month. You’ve got revenue every month. It’s amazing.”

— Adam Patterson, Managing Partner, The HealthCare Initiative

Growing Contract Staffing Capabilities at Your Search Firm

The leap from perm to contract staffing may seem daunting, but in many ways, contract staffing is no different from perm, albeit a bit more aggressive and faster paced. As Katie Trippe, Executive Recruiter and VP of Operations at The Q Works Group says, “Really, the recruiting process isn’t any different than what you’ve been doing. Candidates are primed and ready in the market today to do contract roles. Many people want to work remotely. Many people want flexibility in their career.”

How do you get started in contract staffing? MRI industry leaders offer these six strategies for success. MRINetwork’s white labeled contract staffing solution can also help you with training, back office support, and securing larger business accounts. 

Read the case study: How a Dublin-based MRI search firm landed an interim partnership with Google.

Back Office Support to Simplify Contract Staffing

Tim Ozier, Senior Sales Director at MRI, says many perm recruiters don’t introduce contract solutions into their portfolio of offerings because contract staffing is really like two different businesses combined. “There is the talent access side that they already know well, are good at, and are comfortable with.” Ozier explains. “But then there is the back office side too, with all of the legal responsibilities that go hand in hand with being the employer of record.” 

The good news, Ozier says, is that firms don’t need to be an expert at both. MRI’s back office support manages all of the moving parts, including:

  • Contractor payroll and expenses
  • Background checks
  • Onboarding
  • Compliance
  • Benefits administration
  • Billing
  • Insurance, workers compensation, and liability insurance

Handing off legal responsibilities, payroll and more, Trippe says MRI’s back office support has freed her team up to do what they do best: help their clients grow.

Ready to Grow Your Business?

Flexible staffing is becoming more and more important to clients and candidates. MRI can help you to capitalize on opportunities to create a thriving business and recurring revenue stream. Learn more to find out about MRI’s contract staffing solutions.