Recruitment agency question · Tracking, data and choosing help

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.

Answered by the ShoutEx team · Updated October 2026 for 2027 planning
How agency owners ask it
  • Should we add contract staffing?
  • What does it take?
  • Can perm recruiters sell contract?
The ShoutEx answerMarketing, automation and development team
✓ Answer

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

Perm versus contractShoutEx framework.
AreaPermanentContract
RevenueOne-time feeMargin every week
Cash flowPaid after startPay workers first
Back officeInvoicingTimesheets, payroll, compliance
LicensingRecruiter licence in OntarioTemporary help agency licence in Ontario
ShoutEx framework.

How we look at it at ShoutEx

We set up marketing for the new service, timesheet automation and margin reporting. See timesheets.

Watch out for
  • No cash flow plan.
  • Manual timesheets.
  • Licensing missed.
  • Recruiters untrained.
Good signs
  • Client demand first.
  • Cash flow planned.
  • Back office automated.
  • Margin tracked.
Recruiters, candidates and regulators

What recruiters and regulators say

Here is what agency owners say.

Redditr/recruiting

Owners discuss adding contract staffing to perm desks.

Browse the threads →
Redditr/recruiting

Threads on funding contractor payroll.

Browse the threads →
Government of OntarioLicensing for temporary help agencies and recruiters

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.

Adding contract or perm?

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.

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