Increased Demand for Interim Recruiters –
An Early Sign of Recovery?

Dear Colleague:

When we look back at the last two recessions, it is apparent that the Interim HR market (and the Contract Recruiting market, in particular) is a bellwether for the economy.  

For example, beginning in January of 2008, we saw orders for Contract Recruiters begin to dwindle to a low or even non-existent volume.  Thus, we were aware that the “recession” had arrived – even though it would be months before it was officially announced.

Conversely, an increase in demand for Contract Recruiters has always been a harbinger of economic recovery.  We are pleased to report that beginning in June 2009, we have experienced a strong upswing in requests for Contract Recruiters, Contract Sourcers, and Interim Directors of Talent Acquisition (some of those positions are described herein). These positions are currently approaching 45% of our volume (up from only 10% earlier this year).  This is very encouraging news.

Yet, many analysts caution that this recovery could be slower and “patchier” than previous ones.  A continued environment of uncertainty (translation: “no approval for headcount”) is almost too much to bear for organizations who have pared their ranks “beyond the bone.”  Under these circumstances, the ideal strategy for obtaining the critical help you need  -- while still hedging against volatility -- is to utilize experienced workers on a contract or temp to perm basis:

• Enjoy ultimate flexibility: Use contractors to accomplish specific tasks or projects. When the work is completed, the assignment ends. While two weeks' notice is appreciated, there is no guaranteed minimum length of assignment.
• Keep your hiring options open: As permanent headcount is approved, you can replace contract employees with full-time hires -- or convert them to full-time.
• Make adjustments with ease:  Since contractors are not on your payroll, layoffs do not raise legal, severance, benefits or unemployment issues/costs.
• Minimize transaction cost:  By carefully selecting niche vendors (like Continuiti for HR) who work exclusively within one industry, you should quickly be presented with a slate of on-target professionals who are eager to demonstrate their value.
• Ensure compliance: Hiring contractors on an hourly basis through a third party agency eliminates possible Microsoft and employee misclassification liability.

This recession has cut a swath so large through the ranks of corporate America that there is an unusual abundance of extremely talented HR professionals ready, willing and more than able to work on a flexible basis. Rates are flexible, commutes are flexible, schedules are flexible.  

Hiring contractors at this time creates a much-needed “win-win-win” scenario - not only for your organization and the contractor, but also for the economy.  The more hiring that is done, the better off we all will be. We all should be thinking of ways to put people back to work. Now is the perfect time to beta-test a new type of HR position, or access talent unavailable in-house.  Why not hire a contractor to address HR projects sitting on the backburner, freeing your time for other pressing responsibilities? 

By hiring on a flexible basis now (rather than waiting for approval for permanent headcount) you can forge ahead on stalled initiatives, inject some fresh perspectives into your organization and increase morale – while at the same time, doing your part to aid the recovery.

Best regards,

Regina McGuire and Debra Horowitz
Co-Founders and Partners

If you have a question or comment you would like to share, please email us at interimhr@continuiti.com