Contract placements create an annuity stream that gives you a stable and consistently growing income stream. With generally less work per placement i.e. sourcing, number of interviews, etc. you are able build a headcount of workers that pay out an hourly/monthly margin. This is because contract placements last 3-6 months and often renew longer. During this time, when you place additional contractors on 3-6+ month assignments the margin paid out on an hourly/monthly basis grows with the headcount you have billing. This annuity stream is in addition to your full time placements fees. In many cases the consistent monthly income from contract margin will become the income you will count on with the full time placements becoming the “gravy” that is a nice addition to your monthly income.
The figure below depicts the placement fee amounts received in a 12 month period.
- 25% of the North American workforce is some type of contingent labour.
- Between 1997 and 2009 contract employment increased by over 300% despite the economic downturn.
- Only 30% of contract recruitment is client sourced