Many contract recruiters now wish they had taken that internal recruiting position offered to them 2 or 3 years ago. As in every recession, being an internal employee is viewed with envy. It seems only logical that as layoffs and cutbacks greatly reduce the number of contract recruiters the interest in being a regular employee rises.
But I am not so sure that a contract recruiter should want to be an employee. Most HR professionals are convinced that their organization could not function without them, but I think they are wrong.
Organizations are realizing that they have more employees than they need – and very often in the wrong place. Why should any organization spend salary, development and retention dollars on employees who do not generate new products or revenue? What does a recruiter contribute that an independent contractor could not? There are already hundreds of companies that have replaced their recruiting team with contractors and third-party recruiters and have had success.
Given what is happening in business strategy, HR is about to undergo the biggest reduction in workforce it has ever seen. In an article written just a few days ago Cowan analyst Peter Goldmacher says “. . . large companies will outsource an increasing amount of HR functions. . .” and raised his predictions for Kenexa stock. The Human Resource Outsourcing Association’s membership is growing rapidly and more organizations are finding that they can successfully outsource large portions of the HR function and enjoy good service with lower costs. Over the next decade outsourcing and automation will accelerate and other administrative functions such as IT, finance and legal will also be outsourced.
That puts any independent professional in a good position. Outsourcing firms as well as corporations will be looking for people willing to work on fixed contracts with performance clauses. Sure it will require you to develop marketing skills, invest in some branding, and learn to negotiate; but it will pay you back with many dividends.
Here are 7 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 interact with customers in a strategic way is in jeopardy of being laid off in 
the next year or so, as I indicated above. There is no better security than your own. If you build the networks, skills and put aside the resources to weather the downtimes; you will find much great security in working for yourself.
Reason #2: You Do More, Better.
The entrepreneurial recruiter will develop more cost effective and efficient recruiting methods, lower her costs, 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. Contract recruiters can make prompt decisions and invest where they need to and therefore 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. Managers will solicit your opinions and market knowledge.
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 that 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 be 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, you work your own hours and you take vacations when they suit you.
Reason #6: Candidates and employers will trust you more.
Providing you give honest opinions and represent both employers and candidates fairly, you will gain a reputation as someone trustworthy. Candidates value that above almost anything else, in my experience. If you can let a candidate know that they are not a good fit for a particular employer, both appreciate it.
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 you pay for your own 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 way of 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 past recessions have learned to love being independent.
The time you spend looking for a new job can probably be better used to develop the marketing, selling, and negotiating skills that 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.
