Contracting CornerThe Perm Recruiter’s Contracting Resource

�Copyright © 2007 Top Echelon Contracting, Inc.

June 2007

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Nothing Fishy About Contracting -You Can Enjoy Life on Your Terms and Make a Lot of Money

One of the most important

reasons why people become

recruiters is lifestyle flexibility. The

money to be made is great, of course,

but recruiters like being their own

boss and creating their own sched-

ule. Those are some of the profes-

sion’s many perks and luxuries.

When you place a direct (perm)

candidate, you get a pretty signifi-

cant check for the placement fee.

But you never really know when the

next big check is going to arrive, and

it could be days, weeks or months.

Contract staffing helps recruiters

enjoy their flexible lifestyles because

there is steady income flowing in. You can still work on your next big

direct (perm) placement while your contractors continue to make money

for you for every hour they work.

The following personal stories of two successful “perm” recruiters, Johnny

Winn of The Anchor Group in Cordova, TN, and Tom Townsend of The

Tucson Group in Garner, IA, show how you can enjoy lifestyle flexibility

and make a lot of money thanks to contract staffing.

Skip Work in the Middle of the Week!

The financial security provided by contract staffing allowed Johnny Winn

to recently drop everything and go on a fishing trip – in the middle of the

week! While he was enjoying the experience of landing a 7-pound large-

mouth bass at a private lake in southern Kentucky, he was still making

money because his contractors were working.

“The freedom that contracting provides is great. If I want to work half a

day and go play golf one afternoon or take two days off to go fishing, I have

the ability to do that. I work for myself,” said Winn. “The freedom of work-

ing for yourself and having that kind of flexibility is absolutely fantastic.”

Winn had previously worked in sales and sales management with com-

puter companies before deciding to leave the corporate world behind and

venture out on his own and become

an IT recruiter. Contract staffing has

appealed to Winn from the moment

he first started recruiting.

“Contract staffing provides great

cash flow. If a perm recruiter gets

a chance to place a contractor,

Top Echelon Contracting makes

it extremely easy,” Winn said. “I

always thought contracting was a

smart thing to do. It makes perfect

sense. With the help of Top Ech-

elon Contracting, I really don’t have

to worry about all of the details and

paperwork. I just call them and they

take care of everything.”

Contracting Takes the Pressure Off!

Winn does not hesitate to explain the financial benefits of contract staff-

ing. The money adds up. “You do the math. Let’s say that you earn $10

an hour for a specific contractor, and with 160 work hours in a month,

that’s $1,600. I’m mostly a perm placement recruiter, but I’ve been able

to have two or three or four contractors out. It really helps take the pres-

sure off when you’ve got $2,000 or $3,000 or $4,000 a month coming in

because you have contractors working. Contracting is great,” said Winn.

“Work with your existing clients and let them know that you offer con-

tracting. That’s what I do. Contracting has been very helpful to me. The

best advice I can give is that the next time your client asks if you can do

a contract placement, say yes, get the job order, ask if they have a bill rate

range, then call Top Echelon Contracting for help with your first place-

ment. That’s what I did in 1995, and the rest is history.”

One Contractor Equaled $75,746 Plus $��,000

Tom Townsend had the largest “catch” in 2006 through Top Echelon

Contracting. He placed one Tandem Java Programmer Analyst at his

Iowa-based client company and earned $31.65 per hour for every hour

the contractor worked. That equaled $75,746 in 13 months.

Johnny Winn went fishing and still made money

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Townsend works in a highly specialized niche market, and he really tries

to service all of his clients’ needs. He was excited when this lucrative

opportunity came along. He was able to help a client company with a

specific need for a uniquely skilled contract candidate.

“The client is one of my major ones, and the candidate was a great fit. There

aren’t a lot of programmers out there who can do what he does. He worked

on some major projects for the client, and he got a lot of overtime, which was

great since I made money for every hour that he worked,” said Townsend.

Townsend’s case is a good example of how a recruiter can build a strong

relationship with his clients, but he also believes it is important to have a

close personal relationship with his contract candidates. Candidates are

great sources for repeat business and they often have friends looking for

contract jobs, too.

A Diamond in the Rough

“With the Tandem Programmer, I found a diamond in the rough, a good

guy. I took good care of him. This might sound crazy, but he was in Iowa

and I’m in Iowa, and I sent him an Iowa State sweat shirt and some gift

certificates,” Townsend said. “Also, his family was coming over from India

to visit, so I went down to Des Moines and took them out for a meal. I

appreciated all the money he was making for me, and he was happy, too.”

The deal became even sweeter when the client company decided to take

over the sponsorship of the contractor’s H-1B visa and hire him for a

direct (perm) position. Townsend thus earned even more money on the

back end.

“The client’s policy at the beginning of the contract was they would not

sponsor an H-1B visa. Instead, I worked with Top Echelon Contracting,

and they handled the H1-B visa. He became a great worker for the cli-

ent, and after about 13 months they finally said, ‘We’ll sponsor him. He

really knows his stuff,’ ” Townsend said. “I made another $11,000 when

he was hired direct. That was OK by me because I could not have made

$86,746 on a single perm placement. But the combination of a contract

($75,746) plus a conversion to perm ($11,000) made this a great 13-

month experience.”

Townsend has made contract staffing an important part of his business

for nearly 20 years. He is happy to outsource all of the administrative,

financial, and legal issues associ-

ated with contract staffing to Top

Echelon Contracting, but he’s even

happier cashing the steady flow of

checks that come rolling in.

Quite simply, Townsend enjoys

recruiting – and he relishes his sta-

tus as a geographical outsider. “I

work the whole United States in

my specialty. My recruit-

ing competition is in

Seattle, Chicago, Dallas,

and New York. And then

there’s me in an office

in my barn in Garner,

IA. Population: 3,000,”

chuckled Townsend.

Marketing Tips from Fellow Recruiters

You’ve just read how contract staffing makes business more profitable

and life much easier and more fun for two “one-man-show” recruiters.

If the stories of Johnny Winn and Tom Townsend have convinced you

to get into contract staffing so that you can enjoy a flexible lifestyle and

make more money, your first question may be, “Where do I begin?”

You’ll need to market contract staffing to let your client companies know

that it’s one of the services you offer. Tell them that contract staffing is

just one more way you can help them meet all of their needs.

The following list of marketing tips was compiled from direct (perm)

recruiters who are successfully making contract placements. These tips

came directly from your peers:

· Get your name in front of hiring managers by sending a letter and a brochure before you call them.

· Develop key accounts. Going in through the direct placement door and proving yourself there makes it very easy to convert clients over to the contract side because there is a track record in place.

· Make one contract placement, and the client will ask you for more.

· Contract candidates are a great source for job orders and other contract candidates. Talk to candidates about it.

· Recognize that even though you are telling clients that you do contract-ing, they won’t comprehend it right away. Tell them again and again.

More Time for Yourself and More Money

Contract staffing really does help you live life to the fullest on your own

schedule while making a lot of money. You don’t even have to worry

about all of those pesky “paperwork” details. A contract staffing services

provider, such as Top Echelon Contracting, assumes the responsibility

and the administrative, financial, and legal headaches. All you have to do

is sit back and collect checks.

Johnny Winn and Tom Townsend embraced contract staffing and the

lifestyle freedom and financial rewards it provides. You can, too!

Call us at (888) 627-3678 or visit www.TopEchelonContracting.com

You can also sign up to receive a free Contract Training Kit.

DISCLAIMER: This newsletter is intended to give only general information and should not be construed as legal advice for specific situations. Please contact your legal counsel before taking any action.

“I could not have made $86,746

on a single perm placement.” -

Tom Townsend

�

Q. Can Top Echelon Contracting help me payroll the clerical workers in my office?

A. Yes, Top Echelon Contracting offers the In-house Clerical and Administrative Program (ICAP) to help recruit-

ers who need clerical and administrative workers in their office. This program is not for recruiters, agency owners,

partners, etc. Clerical and administrative workers include: administrative assistants, bookkeepers, researchers,

clerks, receptionists, and data entry personnel.

Top Echelon Contracting becomes the W-2 employer and handles all of the payroll, administrative, and legal

issues. We also run a background check on the candidate you select.

What does it cost a recruiter?ICAP will cost you $1.50 per hour over the cost of the workers’ pay rate plus employer’s payroll taxes and insur-

ance. Below is a sample for an Ohio-based worker.

How does the process work?The process is simple when you let Top Echelon Contracting hire the worker and assign them to you on a con-

tract placement.

You call our office and ask for an In-House Clerical and Administrative (ICAP) Quote.

You recruit and select the candidate.

You complete the in-house placement “set-up” form on our Web site.

We will send you a Client Services Agreement for In-House Staffing.

We will send the candidate an Employment Contract and all the standard employment forms.

A time sheet signed by both the employee and you needs to be faxed to our office no later than 1:00

PM EST each Monday.

Payroll is processed weekly and paychecks/direct deposit notices are mailed out to employees every Thursday.

Your agency will be sent a Statement of Debit by Thursday of each week. On Friday we will debit the total

statement amount from the bank account you have previously specified in the Client Services Agreement

for In-house Staffing.

That’s all there is to it! But please note that Top Echelon Contracting does not recruit, so your agency is respon-

sible for locating the clerical or administrative worker.

For more information, visit www.TopEchelonContracting.com/recruiters/ICAP.aspx

Is the person eligible for benefits?We offer health insurance benefits, dental, vision, life and 401K to your clerical and administrative personnel

who work 30 hours or more per week.

NOTE: For technical, professional, and healthcare contractors assigned to client companies, Top Echelon Con-

tracting will automatically pay half of the Employee Only Base Plan Rate for contract employees. (That equals

$128.00.) But employees participating in the ICAP program in your office are classified differently. If your in-

house employee elects health coverage, you will be invoiced (auto debit) an additional $128.00 per month to

cover the employers’ share of this premium.

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Q&A

Top Echelon® Contracting, Inc., has been helping direct (perm) recruiters make contract place-ments since 1992. As a contract staffing service provider, we han-dle all the administrative details. We become the employer and manage the employee paper-work, legal contracts, timesheet collection, payroll funding, pay-roll processing, tax withholding, benefits, workers’ compensation coverage, invoicing, collection of accounts receivables, back-ground checks, etc.

For more information and to request a free

Contract Training Kit, visit: www.TopEchelonContracting.com

800 Market Ave. N. Canton, OH 44702

(888) 627-�678 info@TopEchelonContracting.com

Employee’s Hourly + Employer Taxes + $1.50 for Top Echelon = Your Hourly Pay Rate and Liability Insurance Contracting Bill Rate $9.00 $1.68 $1.50 $12.18

Inside:

Better Health Insurance for Contractors

Top Echelon Contracting, Inc., is offering three new health insurance plans to our contract employees. The new rates are excellent. For example, contractors can get “Employee Only” coverage for $128.00 per month or “Family” coverage for $647.11 per month.

We all know that health insurance is a major topic of discussion in America today. Plus you have probably experienced situations where the “benefit package” played an important part in the recruiting/hiring process.

The new plans have an effective date of July 1st. Below are some highlights of the plans. For more details, visit www.TopEchelonContracting.com/Benefits.aspx

· Less expensive than the previous plan

· Offers more coverage ($5,000,000 lifetime maximum)

· Gives employees a choice of National Network Providers

· Includes $15,000 of FREE Insurance

· Offers easy Internet access to all plan information for enrollees

· Offers three choices with employer contribution:

1. a low cost Base Plan

2. a Premium Plan

3. a High Deductible Health Plan (HDHP) with an HSA option

Below is a sampling of the plan pricing, but coverage is also available for “Employee and Child(ren)” and “Employee and Spouse.” The prices listed are the employee monthly premiums.

Base PlanEmployee Only coverage = $128.00 / Family coverage = $647.11

Premium PlanEmployee Only coverage = $185.36 / Family coverage = $816.23

High Deductible/HSA PlanEmployee Only coverage = $100.10 / Family coverage = $559.36

Options Base Plan $ Premium Plan $ HDHP/HSA Plan $

Prim. Care Phys. Copay 25 25 N/A

Prescription Drug 15/25/50 15/25/50 Maj. Med. Coverage

Urgent Care Copay 50 50 N/A

In. Ded. (Network/Non) 1,500/3,000 500/1,000 2,500/5,000

Family Deductible 3,000/6,000 1,500/3,000 5,000/10,000

Benefit % (Netwk./Non) 80%/60% 80%/60% 100%/70%

Contracting is No Fish Story!

Recruiters Johnny Winn and Tom Townsend Enjoy Flexible Lifestyles and Make Money with Contractors

Q&A

Can Top Echelon Contracting Help Me Payroll the Clerical Workers in My Office?

Recruiters Roundtable

Brief Comparison/Breakdown of Healthcare Plan Options