Addressing Growing Demand for IT Freelancers

In this article, we will discuss how to adjust payroll managers' and recruiters' contractor management processes to harness the growing demand for IT freelancers. Our main objective is to explain why adopting SaaS (Software-as-a-Service) technology is the best way to embrace the market and how to utilize it for quick ROI.

In the modern world, digital transformation is ongoing, making IT professionals some of the most sought-after employees. The global lockdown caused significant job losses and placed people from various professions on furlough; many chose to enter the IT field as self-taught contractors.

Following the global pandemic, many businesses faced financial struggles. Consequently, hiring IT freelancers became a more effective solution than recruiting permanent staff. What new challenges does this shift present to recruitment agencies?

Meeting the Demand for IT Contractors

According to Contractor UK, in May 2021, we observed the highest demand for contracted IT specialists in the last 23 years. This increase is primarily due to companies no longer being able to afford full-time IT specialists.

However, the ‘IT & Computing’ industry is a broad term. It encompasses various skill sets, from technical maintenance to data analytics. Therefore, it’s no wonder that companies struggle to find IT contractors to meet their needs. That’s where recruitment agencies come in. It’s your responsibility to match clients with the most suitable prospects and provide the best job opportunities for your contracts.

Attract New Specialists

Every agency strives for growth. They seek to onboard new specialists who can connect with their clients. With the demand for temporary IT workers higher than ever, competition for acquiring new contacts is becoming particularly fierce.

One way to advance is to implement a high-performing CRM system. This system can automate many time-consuming manual tasks, such as building talent pools, tracking applications, and assessing candidate engagement.

We highly recommend Firefish as one of the best solutions available, particularly for recruitment agencies that work with contractors. It empowers you to create the processes you need and integrates with various tools that enhance your automation capabilities. 

Re-engage Former IT Contacts

Another effective tactic is to become a highly relevant resource for your IT freelancers who are seeking clients. Reach out to IT contractors with whom you’ve previously worked. However, this route isn’t easy. You will need to distinguish between those whose placements have ended and the ongoing ones. Approaching them individually can also pose a challenge.

But not if you’re using the Recruitment edition of Timesheet Portal. Our integrated email inbox allows seamless navigation between clients and contractors. You can also filter contractors by their placement status. From there, you can send an email to multiple recipients - just tick the checkboxes next to the names to select them. 

Manage Bigger Volumes of Contractors

Assuming you have a flawless and highly effective candidate acquisition strategy, you will soon find yourself dealing with larger volumes of contractors than you may be used to. This, of course, presents a challenge. If you are managing most of your processes manually, you may not be prepared to confront it. The most effective way to manage more contractors simultaneously is by utilising process automation.

Invoice Generation

One of the most significant issues in the contractor recruitment industry is invoicing. Manual data input from timesheets is a time-consuming process that is also prone to errors. If spotted, invoice mistakes can lead to serious legal problems. The cherry on top is breaking the client's trust. Naturally, as the number of contractors grows, so too will the number of invoices, which again increases the chances of potential mistakes.

At Timesheet Portal, we aim to minimise manual data entry. This is why our Recruitment product includes a tool that generates invoices instead of requiring you to do so. Additionally, it is not a rigid one-size-fits-all template. We offer a diverse range of customisation options, allowing you to create unique invoices based on the client’s requirements, the complexity of the job, differentiating charges, and other details you may need to include.

It takes the timesheets submitted to the system and applies a set of rules you’ve programmed to consolidate relevant data in the form of an invoice. Just as you can engage previous contractors, you can also send the invoices to your clients using the same internal email tool.

Automated Reminders

As covered in the previous section, you cannot generate invoices without timesheets. Unfortunately, contractors sometimes fail to submit timesheets on time, which interferes with the invoicing process and can cause setbacks that impact everyone. This situation strains your relationship with the client due to the lack of necessary documentation, leaving the contractor feeling frustrated as they will not be paid on time.

The same issue arises when a recruiter fails to approve timesheets promptly. Both parties are equally prone to error, and it’s human to make mistakes. That’s why the wisest course of action is to rely on technology as much as possible.

Our product tackles this issue by incorporating a customisable and highly flexible notification system. It is applicable to both parties: the contractor and the approver. Notifications are delivered via email or SMS.

You can customise your reminders by day of the week, time, whether they occur before or after the required activity, and more.

On-going Collaborations

As a contractor recruiter, you know you’re meant to be a virtuoso of communication. You’re right to apply this skill set to attract new talent, but that’s not the only area you should focus on. Instead, concentrate most of your effort on maintaining good relationships with existing contractors, as retaining current staff is far cheaper than attracting new individuals.

Stay in Touch During and After Placement

Maintaining the relationship is essential for securing a loyal and effective contractor who will continually collaborate with you. It’s a common mistake to stay in touch with the contractor before securing their placement and then lose contact once they begin the project.

First, this portrays your previous relationship-building efforts as clever and self-serving. Second, it puts you both at a disadvantage, as you should definitely provide the contractor with feedback during the project.

Ultimately, in light of the shortage of IT specialists, cultivating a strong relationship is the most effective strategy to prevent them from leaving for your competitors. Moreover, to encourage their retention, it's essential to demonstrate that you are providing them with as much value as you receive from them.

Summary

Demand for IT contractors has never been higher. However, the market has faced the most significant shortage of IT specialists since 2017. The best way to tackle competition in the industry's recruitment arena is to build strong relationships with your existing freelancers. Consider new talent acquisition as a secondary task.

Focusing on one task at a time may be tempting- whether it's retention or attraction. However, to be successful and stay ahead of the competition, you need to find a balance between the two. The best way to achieve this is by adopting software that is rich in integrations and automation options.

We are indeed offering such a solution.

So, why not reach out and see for yourself?