Over the years, TBOS has spoken to many perm-only agencies and discussed their reasons for not placing contractors.
Many of which came up with several excuses and were unaware of TBOS winning formula for processing 1 contractor, 20 contractors or more!
- Timesheet management is timely
- Invoice finance is costly
- Unsure how to manage the finance facility correctly
- Little or no knowledge on paying contractors correctly & compliantly
- Difficulty calculating contractor rates correctly
- Timesheet management
- Invoicing (UK & International)
- Credit insured funding
- Invoice finance management
- Contractor payroll (PAYE, Umbrella Company, Ltd Company)
- Contract placement advice
With TBOS by your side, supporting your back-office and funding requirements for your contract placements, your perm-only business can focus on sales without ever needing to turn down contract business again.
To highlight this fantastic opportunity, TBOS lists 5 top reasons why perm-only agencies should start contract placements:
1. PROFITS ARE GENERATED ON A DAILY BASIS
As you know, permanent placements will generate an instant profit figure, however with a contract placement you generate daily profit for every day the contractor is on site. The average contract placement will renew at least twice with a client, meaning that you could end up generating more profits than if you had placed the candidate on a permanent basis.
Furthermore, if you build your contractor book to a reasonable level you can generate a regular income even when you are not working, this is much better than relying on when your next permanent deal will drop.
2. INCREASES COMPANY TURNOVER
Contract placement invoices include the pay rate to the candidate and the agency profit. This figure will increase your agency turnover compared to permanent placements, as the permanent invoices only show the agency fee. The increase in turnover will improve your company value and will likely attract the attention of potential buyers in the future.
3. FUNDING IS EASILY AVAILABLE WITH TBOS FREEDOM
Often the main drawback of making contract placements is that the candidate needs to be paid on 7-10-day terms, whereas the client will pay the invoice on a 30-45 day terms, leaving a funding gap. This is where many perm-only agencies drop off as they need to obtain invoice finance or use a Pay & Bill company.
Well, they no longer have to run scared of contractor finance!
There is a new and more cost-effective way to fund contract placements, and it’s called TBOS Freedom.
- Unlimited Credit Checks
- Invoice Finance
- Contract Placement Advisory Service
- Credit Insurance
- Contract Administration
- Timesheet Management
- Invoicing (UK & International)
- Contractor Payroll
- Credit Control
- Intermediary Reporting
- Telephone & Email Support
4. INCREASE IN COMPANY VALUE
One of the main advantages of contract recruitment is the effect it has on the recruitment agency value. A perm-only agency often has a lower value compared to a contract agency as the buyer is likely to capitalise on continued contract placements after the sale. Contract agencies with long-term contracts and who obtain preferred supplier agreements are far more attractive to buyers as they are able to demonstrate continued revenue, whereas with perm-only agencies, this proves to be much more difficult.
5. OPENS UP FURTHER CONTRACT & PERMANENT PLACEMENTS
When there is an opportunity to make a contract placement with your existing client, you should definitely assist. Not doing so, could result in your client going elsewhere, opening the door to your competitors.
Additionally, a good contract recruiter will often keep in touch with the client and candidate on a regular basis during the duration of a contract placement. This continual communication increases the likelihood of conversations about more potential placements.
HOW TBOS CAN HELP
Be it independent recruiters, perm-only agencies or new start-up contract agencies, TBOS can assist with the full back-office and funding requirements for processing 1 contractor, 20 contractors or more. Given your placement requirements, our specialist team can recommend a tailored back-office solution to your agency needs.
Our solutions also offer excellent value for your hard-earned recruitment money, as you only pay for our services when your contractors actually work!
Using TBOS for your contract placements not only gives you the perfect introduction into contract recruitment but it allows you to focus sales with our team taking care of the boring back-office administration - we know you hate to do…