Temp recruitment is on the rise and here’s how you can get your hands on a Free Temp Recruitment CRM!
The Recruitment & Employment Confederation (REC) reported that recruiters filled over 25.7 million temp and contract roles in 2022.
Compared to the 702,950 permanent roles that were filled.
That’s a pretty sizable difference!
The working world seems to be rapidly changing as people are now looking for increased flexibility in what they do.
Having the ability to choose when you work is attractive for the employee whilst at the same time giving the employer access to a flexible workforce.
With this increased appetite for flexibility, it makes complete sense that we’re seeing an increase in the number of Temp/Contract recruitment placements filled by recruiters in the UK.
This is what’s coming up across the rest of the blog.
Put very simply, temp recruitment is when recruiters focus on finding employees for a company who are willing to work on a contract/temp basis.
When hiring for a temp role, the recruiter will usually know the duration that the contract/temp position will run for.
The duration of a temp position can vary dramatically!
Some temp recruiters will look to place shift workers who will work for a couple of days or they could place contractors who can be on a temp/contract project for months/years.
You can see how a free temp recruitment CRM can be a useful tool for anyone who’s recruiting in this market.
Temp recruiters need a CRM to quickly identify who’s working when and to be able to quickly identify what candidates could be a good match for a project when their client chucks them a new requirement to fill.
Permanent recruitment is the polar opposite of Temp recruiting. Recruiters who fill perm roles spend their time headhunting candidates who will work in a role indefinitely.
The permanent recruitment process can often be a lot slower than hiring temp/contract staff. Mainly because the perm candidate will be committing to the role for a longer period.
So you typically find that candidates are less willing to switch.
If we start with Temp first.
Recruiters are often drawn to temp recruitment due to the fact it can provide a recruiter with recurring revenue. Whereas permanent recruitment often tends to be a one-off payment.
If you’re a recruiter who’s placed 10 candidates on temp projects for 6 months, you will then know that you’re guaranteed some income every month.
Unless the contractor decides to leave or is fired!
If you’re a small business or solo recruitment Founder, having the security of monthly reoccurring payments from your work can be attractive, as cash flow can often be a struggle for smaller companies. Especially in the early days.
The downside to Temp recruitment is that it requires a lot of management compared to the placement of permanent staff but that’s something I’m going to touch on in more detail in another section of this blog.
Until then, let’s crack on with
In my experience, all the recruitment agencies that I worked in had a split between the Temp and Perm recruiters.
The first office I worked in actually had the Temp and Perm recruiters in different rooms, walking into the office in the morning was like getting on a plane.
Some of us went left and some went right,
Anyway…
Even though all the agencies that I worked for had a separation between the Temp and Perm recruiters, there’s nothing to say that you can’t do both.
As a Solo Recruitment Founder/Freelance Recruiter there’s a big benefit to having some consistent income from the Temp placements, it’s just the big issue of managing the contracts and paying the contractors wages.
However, if you manage to get a mix of the two, I could see it being a nice world to live in.
Having enough Temp placements out there to pay the bills and knocking in the odd perm deal to top up the bank balance.
Temp and Perm recruiters charge their clients a fee for helping them fill an open job vacancy.
Temp and Perm recruiters have slightly different charging models though.
Temp recruiters will be given an hourly or daily rate that the client is willing to pay for a contractor.
The recruiter will charge the client a rate, pay the Temp worker a rate and keep the margin in the middle.
So to give you an example,
If the client is willing to pay $500 per day for a contract resource, the recruiter might pay the contractor $400 per day and make a $100 per day margin for every day that the contractor works.
Typically recruiters collect the recruitment fee for their temp candidates on a bi-weekly or monthly basis.
So the recruitment fee is drip-fed to the recruiter over the course of the contract and if the contract is terminated or the contractor leaves, the fee is no longer paid.
Here’s an article on How Recruitment Agencies Charge, if you would like to do some further reading — https://www.agencycentral.co.uk/articles/how-do-recruitment-agencies-get-paid-and-how-much/
Managing payments for perm recruitment is fairly simple.
Rather than collecting the recruitment fee over an extended period, perm recruiters send an invoice for their fee in one go and it’s typically paid in one instalment.
Perm recruiters agree to a % fee upfront with their client that they will charge if the vacancy is successfully filled by the recruitment agency.
When the position is filled the recruitment agency will typically send the invoice on the candidate’s start date and collect the payment in full. Some recruitment agencies charge the client when the candidate signs the contract rather than on the start date and this can be useful to help small businesses manage cash flow.
With Temp recruitment, filling the vacancy is only half the battle.
Once you have placed that contractor in a role you then have the responsibility to manage that candidate throughout the lifecycle of the contract.
One of the main challenges here is paying the wages of the contractor.
Some small businesses can struggle with the cash flow element of paying the contractors and then chasing the clients for the fees. If you have +10 or +20 contractors all running on projects at the same time, the wage bill can rack up pretty quickly.
There are companies out there like Sonnovate that specialise in supporting agencies by providing the factoring services of paying the recruitment agency/Contractors and then chasing the clients for the full recruitment fee— https://www.sonovate.com/
Working with a factoring company like Sonovate takes a lot of work off your hands in terms of managing contractors.
The free temp recruitment CRM that I am going to share in this blog has a pipeline board to help you understand:
This free pipeline board was generated to help you manage your Temp contractors by understanding where they are in the lifecycle so that you can support them in that part of the journey.
One of the common activities that Temp recruiters will complete is making sure they check in with the candidate and client close to the end of the contract to understand if the client/candidate has any interest in extending the project.
Right, let’s get to the juicy stuff
If you’re someone who’s just starting, Giig Hire offers a Free Forever Recruitment CRM that will give you a great place to start in terms of managing your Temp Contracts.
The FreeForver version of Giig comes with both Temp and Perm workflows and allows you to store unlimited Candidates, Contacts, Companies and Jobs.
As well as the Temp and Perm pipelines, there’s an array of other features that you can get your hands on for FREE — If you would like to check the other features out in detail you can find more info on the giighire.com website — https://giighire.com/
If you’ve had a look at the website and are interested in signing up for the platform, I’ve attached a 4-minute video that runs you through ‘How to open a free account’ and how to get to grips with the features in the free version of Giig.
So finally, onto the features that are available in the free version of the Free Temp Recruitment CRM.
There’s a selection of features that you can access in the Free Forever version of Giig but the top four are:
If you’re someone who wants to watch how it all works, I’ve attached another video for you that specifically runs through the process of managing temp candidates using Giig.
