IF THE SUPPLY TEMPORARY WORKERS AND CONTRACTORS IS A NEW SERVICE FOR YOUR COMPANY it may be effective to simply put in a call to your clients to tell them about your new service, even if you think they may not use this type of labor. If you've worked with a manager for many years, they may simply assume that you don’t recruit temporary workers because you have not done so in the past, and could be overlooking your company and passing business to other staffing companies.
IF YOU HAVE NEVER PROVIDED CONTINGENT WORKFORCE SERVICES TO A CLIENT BEFORE or you haven't asked them about it for some time don’t assume that just because some of clients have never recruited for temporary positions in the past, that they would not be interested in doing so now. Research suggests that 34% of hiring managers are looking to hire contingent workers this year AND the contingent workforce is growing at twice the rate of the permanent workforce currently – meaning that companies are demanding more temporary labor like never before.
WHEN MARKETING TO NEW CLIENTS it may make sense to suggest using temp- or contract-to-hire workers for companies who don’t have the budget for new internal headcount. Contingent workforce spend often comes out of a different cost center for clients than internal hires. This allows companies to scale up to meet their immediate needs without blowing the budget allotted for employees on the internal payroll. Mentioning that your company can offer contingent workforce services as temp- or contract-to-hire situation can help your clients – especially since lots of companies are uneasy about recruiting for a direct hire position in the current economic climate.
On the phone, clients may ask you about your new offering, here are a few questions we’ve heard asked of staffing companies we work with:
Why is your company different? Small to mid-size staffing companies and independent recruiters usually have a distinct advantage over large staffing companies -- they are experts in their niches and passionate about what they do. Usually this translates to higher quality workers delivered faster to clients than larger services. Where these companies sometime fall short is handling employer responsibilities. Large staffing companies have vast and dedicated resources for risk management, insurance, legal and finance. With Emergent staffing companies of any size gain big company resources (the Emergent family of companies is one of the largest employers of contingent labor in the U.S.)to compliment their service expertise and dedication.
Why does your company supply contingent workers? Statistics have shown that the direct hire placement business declined 50% between late 2008 and 2010! The economic environment has made it essential for companies to leverage cost effective ways of doing business. Contingent workers allow companies to easily and flexibility tap into the skills they need to execute tasks and projects for a period of time potentially saving a large amount of money over internal hires.
Why should my company use temporary workers or contractors? Many companies may have excess workload and need help immediately but cannot get approval in time for internal headcount. By engaging contingent workers clients will expediently gain the skills they need now without having to make a long-term commitment to the worker. Additionally companies that are unsure about bringing on full-time, internal workers can utilize contingent workers until they gain clarity on hiring strategy. At this point they may convert the contingent worker to direct hire.
See our blog post on 1099s and Independent Contractors: What you need to know for more information
Do you provide contingent workers for most skill types? In all States? The answer to this will depend on your companies specialties, insurance, risk management strategy, financial capacity and whether your company is set-up to employ workers in each State. For staffing companies Emergent makes it easy to do business in new States and skill areas by becoming the employer for the workers for the duration of their assignment.
(i) with a markup rate on top of the worker’s pay rate
(ii) as a pre-negotiated bill rate
(iii) as a pre-negotiated pay rate and markup rate
(iv) as a statement of work.
See our blog post on The Basics of Staffing Markups for more information.
Call Emergent today on 818.955.6870 to find out how we can help you grow your business!
Why is your company different? Small to mid-size staffing companies and independent recruiters usually have a distinct advantage over large staffing companies -- they are experts in their niches and passionate about what they do. Usually this translates to higher quality workers delivered faster to clients than larger services. Where these companies sometime fall short is handling employer responsibilities. Large staffing companies have vast and dedicated resources for risk management, insurance, legal and finance. With Emergent staffing companies of any size gain big company resources (the Emergent family of companies is one of the largest employers of contingent labor in the U.S.)to compliment their service expertise and dedication.
Why does your company supply contingent workers? Statistics have shown that the direct hire placement business declined 50% between late 2008 and 2010! The economic environment has made it essential for companies to leverage cost effective ways of doing business. Contingent workers allow companies to easily and flexibility tap into the skills they need to execute tasks and projects for a period of time potentially saving a large amount of money over internal hires.
Why should my company use temporary workers or contractors? Many companies may have excess workload and need help immediately but cannot get approval in time for internal headcount. By engaging contingent workers clients will expediently gain the skills they need now without having to make a long-term commitment to the worker. Additionally companies that are unsure about bringing on full-time, internal workers can utilize contingent workers until they gain clarity on hiring strategy. At this point they may convert the contingent worker to direct hire.
How does your company employ contingent workers?
In general clients will want to be sure that the contingent worker your company supplies is delivered in compliance with Federal and State laws and regulations. Engaging contingent workers on a 1099 basis can be risky for both the supplier and the client if all the items in the IRS 20 Factor test are not met. By working with Emergent staffing companies recruit the workers and then Emergent handles the statutory employer responsibilities that come with engaging contingent staff on a W-2 basis, leaving you to look after sales and client services. See our blog post on 1099s and Independent Contractors: What you need to know for more information
Do you provide contingent workers for most skill types? In all States? The answer to this will depend on your companies specialties, insurance, risk management strategy, financial capacity and whether your company is set-up to employ workers in each State. For staffing companies Emergent makes it easy to do business in new States and skill areas by becoming the employer for the workers for the duration of their assignment.
What are your fees for providing contingent labor?
Generally, contingent labor pricing can be offered is offered in the following ways:(i) with a markup rate on top of the worker’s pay rate
(ii) as a pre-negotiated bill rate
(iii) as a pre-negotiated pay rate and markup rate
(iv) as a statement of work.
See our blog post on The Basics of Staffing Markups for more information.
Call Emergent today on 818.955.6870 to find out how we can help you grow your business!
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