From London to LA: Growth through Contracting

Challenge

As a successful UK recruitment firm that specializes in SREs and DevOps engineers, our client had built a strong reputation among clients who relied on them for retained searches.

However, when they expanded to help US companies find and hire SREs and DevOps engineers, they began receiving requests for contractors. While the firm was eager to support these requests, they lacked the capabilities to provide contractor services.

The executive team quickly realized that they were missing out on a lucrative market and leaving their clients without a complete service. But the challenges of providing contractor services across multiple US states were daunting. Legal compliance and cash flow requirements were overwhelming, and the team knew they needed help to succeed.

As the firm faced this new challenge, they also grappled with the impact it would have on their reputation and their clients. Would they lose business to competitors who could offer contractor services? Would their clients trust them less if they couldn't provide a complete range of services?

In the end, our client knew they had to act fast to overcome this challenge and continue to grow their business. But how would they do it?

Solution

After conducting extensive research and exploring various options, the recruitment firm identified an Employer of Record (EOR) as the optimal solution to reduce the legal and compliance barriers associated with providing contractors. By using an EOR, the firm was able to legally employ contractors in the states where their clients operated.

However, the firm still faced a major obstacle - cash flow. Since contractors are typically paid weekly while clients pay on a net 60 basis, the firm needed to find a way to fund weekly payroll at scale.

After an exhaustive search, they partnered with Ascen, an all-in-one EOR and funding provider.

With Ascen's help, the recruitment firm was able to quickly onboard highly skilled SREs and DevOps contractors onto live assignments within two weeks. Ascen provided the necessary funding to cover weekly payroll, allowing the
firm to offer contractors to their clients for the first time.

Thanks to this partnership, the recruitment firm was able to provide a complete service to their clients and expand their business into the lucrative contractor market.