Most staffing surprises come from things nobody asked about: conversion fees, minimum hours, overtime billing and who is responsible for what. Take these questions to every IT staffing firm you call, write the answers side by side, and get the important ones in writing.
Typical timing (rule of thumb): often weeks for specialists.
The Questions
- What is the bill rate, and how much of it reaches the worker as pay?
- Who handles payroll, payroll taxes, workers' compensation and unemployment insurance?
- What is the conversion fee if we hire the worker directly, and when does it drop to zero?
- What is the replacement guarantee if someone does not work out?
- How do you test technical skills, and who does the testing?
- Is the contractor a W-2 employee of yours or a 1099 or subcontractor?
- Who owns the work product and intellectual property?
- How do you verify work authorization?
- Are there other firms between you and the consultant?
- What notice is required to end a contract?
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Tips
- Ask whether the candidate is on the firm's W-2 or a sub-vendor's; extra layers add margin.
- Run your own short technical interview even after agency screening.
- Put intellectual property and confidentiality in the contract before work starts.
Before You Sign
- Check the rate, start date, job duties and work location in the agreement.
- Read the conversion, cancellation and overtime terms.
- Agree who trains, who supervises and who reports injuries.
- Keep the signed copy where your payroll or HR person can find it.