Many contract recruiters wish they had taken that internal recruiting position offered 2 or 3 years ago. As in every slowdown, being an internal employee is viewed with envy. It seems logical that as layoffs and cutbacks significantly reduce the number of contract recruiters, the interest in being a regular employee rises. The lure of a steady paycheck, benefits, and the sense (although false) of security score high.
But I am not sure that a contract recruiter should want to be an employee.
Organizations realize that they overhired during the pandemic and have more employees than they need – and often in the wrong jobs.
Why should any organization spend salary, development, and retention dollars on employees who do not generate new products or revenue? Does an internal recruiter add enough more value than a contracted recruiter to justify the cost?
Hundreds of companies have replaced their recruiting team partly or entirely with contractors and RPOs and have had success. Unfortunately, most recruiters are convinced their organization could hire the best people without them as employees, but I think they are wrong.
Organizations are automating as many services as possible and outsourcing many non-core functions. This puts the independent professional in a good position. Outsourcing firms and corporations are looking for people willing to work on fixed contracts with performance clauses. Recruiters are in a good place. They can perform with little internal support other than IT.
Here are seven reasons that being a contract recruiter is better than being an internal employee.
Reason #1: Job Security
There is no job security working as an employee. I think anyone in a job that does not generate revenue, invent new products or services, or strategically interact with customers is in jeopardy of being laid off at some point. There is no better security than the security you create for yourself. If you build the networks and skills to weather the downtimes, you will find excellent security in working for yourself.
Reason #2: You Do More and Do It Better
As an entrepreneurial recruiter, you must develop more cost-effective and efficient recruiting methods, keep costs down, and improve customer satisfaction. These have been elusive goals for corporate recruiters, who struggle with internal bureaucracy, an HR leadership team that does not understand or appreciate what a recruiting function needs to be successful, and few dollars for investment. There is almost no benefit to a corporate recruiter in being more efficient or cost-effective. If they try to do so, they will lose budget dollars and staff. Contract recruiters can make prompt decisions and invest where they need to and better serve their customers.
Reason #3: You get more respect
As an independent professional, you automatically get more respect from clients. If your demeanor and attitude are also professional, you will be listened to, and hiring managers will take your advice. Contrary to the experience of many corporate recruiters, managers will solicit your opinions and market knowledge. The expert contract recruiter understands and can explain the labor market to hiring managers. They can give examples of what other clients are doing and can apply the best practices of many. These are benefits that are hard for a corporate recruiter to offer.
Reason #4: You are rewarded for your performance
No one keeps a contract recruiter because they are nice people or because they have been loyal. Contract recruiters are rewarded for performing well – no matter the circumstances. You are always paid the amount you convince and show managers you are worth. That’s why internal recruiters are often jealous of contract recruiters: they are only paid according to some general HR pay scale that has very little or nothing to do with how well they perform.
Reason #5: You can have more fun and be more flexible
Being on your own is scary at times, but it has its rewards. You get to take on the work that excites you and interests you. You can say no. You work where you want, work your own hours, and take vacations when they suit you. You can adjust your workload to match your energy levels, abilities, and family needs. This flexibility and freedom to enter new markets can be enough reason to go independent.
Reason #6: Candidates and employers will trust you more
Independence is associated with neutrality. Providing you give honest opinions and represent both employers and candidates fairly, you will gain a reputation as someone who fairly assesses candidates and employers. Candidates value that above almost anything else, in my experience. If you can let a candidate know they are not a good fit for a particular employer, both appreciate it. Hiring managers often turn to outside recruiters when they wish to keep searches private and seek the widest reach and most objectivity. These are powerful assets for a contract recruiter.
Reason #7: You are cheaper
No matter what your hourly rate, assuming it is market competitive, you cost an organization less than the loaded salary of an employee. You also do not require internal promotions and pay for your training. There are no pension requirements or expectations of continued employment.
It is challenging to learn new behaviors. Working for corporations is a very established behavior that takes time to “unlearn.” Over the past decade, the number of independent workers has grown faster than any other type, and lots of people who were laid off in the pandemic and past recessions have learned to love being independent.
You may be asking, what is the difference between a contract recruiter and a head hunter? It’s really about how you work and market yourself. Contract recruiters usually work for a particular corporation or other recruiting firm and do not own their own business. It’s a fine line, and you may decide to become a third-party recruiter. Either way, you maintain your independence.
The time you spend looking for a new job can probably be better used to develop the marketing, selling, and negotiating skills you will need as an independent. Hopefully, these are challenges that you are willing to face. Even though you must face the consequences of your choices, nothing is better than being free to make those choices.
Fixing Work – A Recommended New Book
Thomas Bertels’ and David Henkin’s new book Fixing Work: A Tale about Designing Jobs Employees Love is more than needed in today’s changing business environment. The book outlines practical ways that work and jobs can be designed to be both engaging and productive. It is written as a story about a manager named Jerry and his challenges as a boss in today’s work environment and how he struggles and succeeds in making work fulfilling. This book is easy to read and has great ideas on redesigning work.
I highly recommend picking up a copy today.
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