4 tips for a recruiter when there is a talent shortage

Last year was a tough year for a lot of permanent recruiters for a few reasons.

·        It has been harder to win over clients.

·        It has been harder to pull in new jobs.

·        It has been harder to find candidates.

Unfortunately, these are the 3 things that you need to be successful. If you are struggling with 1 of these, recruitment is tough, but it creates demand and gives you a chance to shine. However, as I previously stated, recruiters are struggling with all 3 of them.

A few things have led to this, but the biggest reason is the economy. The state of the economy over the last few years has caused organisations to be more cautious with spending. One of the first things that gets cut is the recruitment budget.

Some organisations have moved recruitment in-house, some have put a hold on recruitment, but some have moved away from long-term commitment. The opportunity for contract recruitment has risen year on year over the last 3 years. A large chunk of permanent recruiters steer away from contract recruitment because they view it as a minefield. But, this minefield will allow you to not only hit your targets in a tough market but exceed them.

What are the benefits of contractors?

·        They bring in steady income.

When you place a contractor, you don't get one lump of billings like you do with a permanent placement. Your fee gets spread out across the duration of the contract. This means that you can bring some stability to your billings across the year. If you have a contract run rate, then you will go into each month with guaranteed money already. You can put them in hard-to-fill roles.

All permanent recruiters have had roles that are hard to fill and end up being open for months. There are many reasons why the role is hard to fill, but if you have contractors you can provide one for the client while you find them a permanent candidate. This will not only increase your billings, but it will also provide a great service to your clients as they will have someone doing the work and helping them hit deadlines.

·        Quick process

The contract recruitment market is a fast-paced place. Contractors are regularly on the move and can often relocate on a few day's notice as they don't have long notice periods. Often the interview process is a quick teams call. This means that you don't need to wait for notice periods to end, then the 30-day payment terms before you get your fee.

So what do you need to do?

There are a few tips I give to permanent recruiters who are looking at dipping their toe into the contract market.

·        Ask every candidate if they are open to contracting.

Every time you talk to a permanent candidate, you should ask them if they are open to a contract role. More candidates are moving to contract work every year. By being a contractor they can have more control over the work that they do and get more money for it.

·        Ask every client if they are open to taking on a contractor.

As discussed earlier, some roles are hard to fill with a permanent candidate. By asking every client if they are open to taking on a contractor, you are able to talk about the benefits of using a contractor even if it's in the short term to buy some time to find the 'perfect' permanent candidate.

·        Understand the benefits to the candidate and client.

There are many benefits to clients when using contractors. Knowing what these are will help you when you are consulting with them about using them. Not all clients understand how contract recruitment works and they don't fully understand the benefits it will provide them.

·        Research IR35 - It's not as scary as you think it is

This is the part of contract recruitment that scares people. When I first started looking into it, I felt the same. The more I researched it, the more I understood it and it became less scary. Lots of clients are in this very same position. They know of it and know the implications of beaching IR35 regulations, but they don't understand what is involved.

Good recruitment is about collaboration and offering solutions to often complex talent challenges.

Having multiple different options for a client, such as contract recruitment will enable you to provide the best possible service you can.