How do I expand from permanent placement into contract staffing, or the reverse?
Contract revenue is steadier; permanent fees are bigger. Adding the other model changes cash flow, systems and risk.
- Should we add contract staffing?
- What does it take?
- Can perm recruiters sell contract?
Start with demand from existing clients: which ask for contractors or temp-to-perm. Plan cash flow, since you pay contractors before clients pay you, and set up timesheets, payroll, insurance and licensing, such as Ontario's licence for temporary help agencies. Train recruiters to sell both, and track margin per contractor alongside permanent fees.
What changes
| Area | Permanent | Contract |
|---|---|---|
| Revenue | One-time fee | Margin every week |
| Cash flow | Paid after start | Pay workers first |
| Back office | Invoicing | Timesheets, payroll, compliance |
| Licensing | Recruiter licence in Ontario | Temporary help agency licence in Ontario |
How we look at it at ShoutEx
We set up marketing for the new service, timesheet automation and margin reporting. See timesheets.
- No cash flow plan.
- Manual timesheets.
- Licensing missed.
- Recruiters untrained.
- Client demand first.
- Cash flow planned.
- Back office automated.
- Margin tracked.
What recruiters and regulators say
Here is what agency owners say.
Ontario licence requirements.
Read the page →Community summaries describe recurring themes in public threads, not individual posts. Vendor pages describe vendor claims, so test them on your own calls.
Read next
Go deeper in the ShoutEx guides, or check the sources behind this answer.
We'll set up marketing and automation for the new service.
Book a call →Follow-up questions
Do we need payroll funding?
Many agencies use it. Plan cash flow first.
Is temp-to-perm a good middle ground?
Often, with clear conversion fees.
What about US contractors?
Rules differ by state. Get advice.