The dynamics in play around consultant-to-perm conversions within Staffing
Imagine this....
A business development professional in the Staffing Industry finds a prospect or is working with a current client who needs help in identifying a new staff member for their team. The decision is made to bring this person on as a consultant first. Whether or not the person is converted to a fulltime employee is dependant on a number of factors. None of which that can be sorted out immediately by their business leaders.
The salesperson spends time with the end client and listens and learns what "good looks like". They even define a project together since the role is deemed a consulting "first" arrangement, as the client wants to bring in someone who has "tackled this type of problem before". All things seem in line and there is a commitment to work together.
While this is going on concurrently the Recruiting function of the staffing company is working to go through their existing network, generating referrals, and working to find new candidates who could be qualified for the work their client needs to get done. In a couple of days the Recruiting team finds several candidates and sets up 3 interviews. One of the 3 candidates is selected by their client and accepts their offer. Success!
The candidate is very impressed between the dialogue with their Recruiter and the overall fit of their new opportunity. They couldn't have asked for more. On the flip side the end client is also impressed by their staffing partner. They listened, set up a stellar interview process, and executed with a winning candidate. Things here also couldn't have gone better.
Fast forward 5 and half months and both the client and consultant are still happy. So happy in fact that both would rather unite and wear the same uniform as a permanently employed couple. The business has also supported the need for an additional full time headcount as well. A message goes out to the staffing firm expressing interest in converting their consultant to full time. The message is rather terse and includes some language suggesting this to be done swiftly, along with some potential changes to an earlier agreed upon conversion fee schedule.
The staffing company responds to their client but things seem strange now. The dialogue is short. The dialogue is mainly done via email. The response time is painful. How could this be? Things were going so smoothly and the relationship couldn't "have been better" before. There were numerous onsite meetings, lunches, progress reports. Feedback was as good as it could be. What's going on?
Meanwhile, the consultant who was always so quick to reply is also now acting differently. What was usually a good call with pleasantries is now a call with timidness and even fear. Things are different now. It's like both sides have changed.
STOP STOP STOP STOP STOP STOP STOP STOP STOP STOP STOP STOP STOP
Yes, this is always one of the most amazing parts of my industry to me. When it comes to consulting staffing firms two things change everything: Permanent Conversions & the Fees associated with them. Consulting firms go from being the hero to a flat our zero and even worse: IN THE WAY. In the way of a business adding a full time piece to their company and in the way of a consultant who would now rather work as a permanent employee.
I've always felt torn about this. There's nothing worse to me then to be "in the way." I don't want a company I am partnering with to feel like I am hurting their business and bottom line, and I sure as heck don't want someone to feel like I am holding their career hostage and sabotaging their livelihood. That's some heavy stuff.
But why does it get to this point? It's funny. Recruiters are oftentimes (and we do it to ourselves!) painted in the light of money hungry and non-empathetic. We never call back. we don't care. We only call when we NEED YOU and then we don't fill you in when things go away or change. We are everything I try not to be each day I work. Call someone back when you tell them you will and people are surprised! How sad.
But when you flip the game and we have executed and brought happiness and good business to the table, but are perceived to be in the way, then sometimes both the consultant & the client become what they despise in a Recruiter by not responding, communicating, or even reacting anymore.
So how do we NOT get here?
For me the best way is to over communicate along the way. Talk about the agreement up front. Talk about what your clients like and don't like. The temptation from both sides is to sign and get started. Things like NDA's, payment terms, and adding in proprietary language take precedence. When in the end topics like conversions and fees wreck relationships. Talk, over communicate, and get ahead of the train that can divide a good beneficial business relationship.
If you are in a current situation like this today here is my advice: Talk about how conversions and fees can ruin or hurt relationships. Yes, actually mention this on the call. Be open that you don't want this to be the case here. Find a common place that both sides can agree on and one where you will still want to do business with each other afterwards. Before you work together in the future again talk about this and work together to build a framework that you both are OK with.
Message me anytime and thank you for reading!
PS: If you like this you may also be interested in a prior article I wrote as well: https://www.dhirubhai.net/pulse/my-thoughts-temp-perm-roger-neild/