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It will come as no surprise that contract-to-hire is dead again. Especially in recruiting.
I know, I know. Someone in some contract staffing shop is going to throw a fit. There’s a place for every type of service, blah blah blah.
Some context: Hirewell does both perm hire and contract (& contract-to-hire) work. We’re agnostic.
So I don’t really have a horse in this race. Whatever makes the most sense for our clients and whatever the talent market bears.
The real numbers:
Q1 2021 - 46% of hires were contract (55% of HR/recruiter roles)
Q2 2021 - 29% of hires were contract (same 29% for HR/recruiter roles)
Contract recruiter placements (as a percentage of all recruiter placements) are down 56%.
Also note: contract recruiter pay rates are up 10% in the same time period.
And the reasons is pretty simple:
Tech hiring is hard af
Everyone is hiring more recruiters (contract and perm) to meet the demand
Contracts recruiters themselves are getting more perm offers and/or longer term projects at higher rates
The market is forcing companies to commit
That is all. Don’t @ me.
Full episode of Hirewell Data Insights Q3 2021 here.
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