Flexible staffing solutions have been gaining significant traction as businesses grapple with economic uncertainty and fluctuating market conditions. As a result, running a successful temp and contract desk could be your key to adapting and maintaining a competitive edge in the current market.
So, why should you add a temp and contract desk to your business?
Whether you are a new recruitment business looking to expand your services or an established agency looking to improve your business model, this blog will provide valuable insights into how a successful temp and contract desk can help you meet your clients' needs and see success in the recruitment industry.
Understanding temp and contract recruitment
In contrast to permanent recruitment, which focuses on recruiting employees for long-term employment, temp and contract recruitment focuses on short-term needs.
- The length of employment is typically shorter, ranging from a few days to a few months.
- The client organisation is not responsible for the candidate's employment, as the recruitment agency employs them.
- Temp and contract recruitment can fill positions requiring specialised skills or experience to meet seasonal or project-based staffing needs.
Another significant difference between temp and contract recruitment and permanent recruitment is how you select candidates for a role. In permanent recruitment, the focus is on finding candidates who are a good fit for the organisation in the long term by evaluating a candidate's experience, qualifications, and cultural fit. In contrast, temp and contract recruitment mostly focuses on finding candidates who can quickly fill the role and hit the ground running.
Temp and contract recruitment enables your business to:
Diversify revenue streams
Recruitment agencies that rely solely on permanent placements are more vulnerable to economic downturns, industry-specific fluctuations, and changes in demand for particular types of roles. By including temp and contract recruitment in your business, you can offset these risks.
A temp and contract desk can attract clients who need temporary or contract workers but may not have considered a recruitment agency that specialises in permanent placements. By expanding your services, your recruitment business can attract a broader range of clients and increase market share.
Another advantage of diversifying revenue streams through a temp and contract desk is the potential to build long-term client relationships. While permanent placements may be one-off transactions, temp and contract placements can be ongoing. As a result, you will see opportunities to build long-term relationships with clients that lead to repeat business and referrals.
Expand your candidate pool
By expanding your services to include temporary and contract recruitment, you can attract a wider range of candidates who may not be interested in permanent positions. So, you can fill vacancies faster with high-quality candidates who are a good fit for the role and your client's organisation.
One advantage of a temp and contract desk is attracting candidates looking for short-term or project-based work. Some candidates may be interested in short-term work for personal reasons, such as travel, family commitments, or other interests.
Another advantage of a temp and contract desk is attracting candidates with specialised skills or those seeking a broad range of work experience. Candidates with specialised skills or expertise may prefer short-term or project-based work, allowing them to work on various projects and gain exposure to different industries or organisations.
Enhance client satisfaction
When you can provide clients with temporary and contract workers who meet their specific needs, you can build stronger relationships and improve overall client satisfaction.
Clients requiring temporary or contract workers often need them quickly. Recruitment businesses that provide high-quality workers on short notice can create a significant competitive advantage and improve their reputation as reliable and responsive service providers.
A temp and contract desk can also provide clients with a flexible staffing solution. Clients who require temporary or contract recruitment may have fluctuating staffing needs, which can be challenging to manage with permanent employees. A temp and contract desk allows clients to scale their workforce up or down as needed without the administrative burden of hiring and firing permanent employees.
Strengthen business resilience
A temp and contract desk can be an effective way to improve business resilience. By diversifying revenue streams and expanding your services to include temporary and contract recruitment, you can mitigate the risks of a single revenue stream and create a more stable and sustainable business model.
A temp and contract desk gives you the ability to respond quickly to changes in demand. Recruitment businesses that rely solely on permanent placements may struggle to adapt to changes in demand, such as economic downturns, industry-specific fluctuations, or changes in the labour market. With a temp or contract desk, you can respond quickly to demand and fill vacancies with high-quality candidates.
Another advantage of a temp and contract desk is maintaining consistent revenue streams throughout the year. Permanent placements may be cyclical and unpredictable, with periods of high demand followed by periods of low demand. On the other hand, temporary and contract placements can provide a steady stream of income throughout the year, helping to improve cash flow and make budgeting and financial planning easier. This constant stream of income is also considered attractive to potential buyers so your business value and exit options will be improved.
Conclusion
Adding a temp and contract desk to your recruitment business can provide several benefits, including diversifying revenue streams, enhancing client satisfaction, accessing a broader candidate pool, and strengthening business resilience.
By expanding your services to include temporary and contract placements, you can mitigate the risks associated with a single revenue stream, respond quickly to changes in demand, and provide high-quality staffing solutions that meet the unique needs of your clients.
How APositive can support your business as it grows
APositive’s Invoice Finance and outsourced payroll solutions can be the boost that helps you scale your business to focus on its growth. We understand the challenges that recruitment businesses face, and we aim to provide you with the tools to grow and thrive. So, you focus on building a successful business instead of stressing over your back office and finances.
Our Invoice Finance solution provides access to the money stuck in unpaid invoices. Rather than waiting up to 60 to 90 days for the cash you need, you can access it the same day you raise your invoices (subject to meeting criteria).
