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Recruitment Process

Even in a downturn, Contracting should be tour most predictable revenue - So why is It still managed in Excel?

Avatar - Iwo Paliszewski Iwo Paliszewski
18 Nov 2025

A few weeks ago, I had a conversation with a recruitment agency owner who told me something very honest:

“Perm is slow, projects got delayed, clients are cautious… but our contractors saved the year.”

It wasn’t the first time I heard this.
In fact, throughout 2023–2024, many agencies quietly admitted the same thing:
contracting and body leasing carried the company when everything else softened.

Even now — with the IT market calmer, competition tighter, and clients negotiating every rate — contracting remains one of the most stable, predictable revenue streams an agency can have.

And yet…
when you look inside most companies, you see a completely different story.

Chaos.
Spreadsheets.
Ten different versions of the same contract.
“No one is sure if this rate is the updated one.”
“Who was supposed to renew that consultant?”
“What is the correct margin here?”
“I think the invoice is wrong.”

Contracting, the part of the business that should be the most stable, is often the part running on the most fragile processes.

And almost always, the culprit is the same:

Excel.



The market slowed down – but contracting chaos didn’t

In a booming market, small mistakes get buried under fast-moving revenue.

In a slower market, every mistake becomes visible.

One forgotten end date → a contractor rolls off → and you lose 40–60k PLN of projected revenue.
One outdated rate → you invoice the client incorrectly → and suddenly your margin for the quarter is wrong.
One spreadsheet not updated on time → finance chases down delivery for days → and reporting is delayed again.

When business is quieter, operational discipline matters more — not less.

But most contracting teams don’t have a “system.”
They have a hero.

You know the person:
the one who “knows everything,” “remembers everything,” “keeps all the spreadsheets,” and “tracks all the dates.”

The problem?
When that person is out for two days, the entire contracting function becomes guesswork.



Contracting isn’t failing because of the market

It’s failing because of the process.

Whenever agencies tell me their contracting is “fine,” I ask one simple question:

“Show me all contractors whose contracts end in the next 60 days.”

In many companies, that triggers:
– searching inboxes
– checking multiple spreadsheets
– messaging three different people
– or worse: “We’ll get this list by tomorrow.”

This isn’t a contracting problem.
This is a visibility problem.

What goes wrong most often?

  • Miscalculated margins
  • Forgotten renewals or extensions
  • Outdated rates not reflected in invoices
  • No link between contractor → client → project
  • Reporting built manually every month
  • Finance reconciling data manually
  • Critical information stuck in someone’s email
  • High dependency on one coordinator
  • Zero alerts or automated reminders
  • Contract data scattered across tools

These issues don’t appear because the market slowed.
They appear because contracting grew faster than the internal structure supporting it.



Contracting Should Be Predictable

The reality is often the opposite.

Contracting should give:

  • stable income
  • predictable extensions
  • clear rates
  • consistent margins
  • real-time reporting
  • low risk

But Excel guarantees none of these.
Excel guarantees only one thing:

One day, it will fail you.



What a Mature Contracting Operation Looks Like

The most successful agencies I work with have one thing in common:
they treat contracting as its own discipline, not an admin task.

Their process looks more like this:

  • Contracts segmented clearly (B2B, UoP, umbrella, outsourcing, project-based)
  • End dates tracked automatically
  • Alerts sent 30/60/90 days before renewal
  • Current rates always visible and versioned
  • All stakeholders see the same data
  • Contractor → client → contact → project all linked
  • Automated financial summaries
  • Ready-to-export reports for management and finance
  • Zero dependency on one person

This isn’t “technology for the sake of technology.”
It’s basic operational maturity.



Why am I talking about this now?

Because the market may still fluctuate, but contracting will always remain a pillar of revenue for agencies working in IT, engineering, temp staffing, or specialized consulting.

And if contracting is your stabilizer, then:

you can’t afford to manage it in a tool that breaks when one cell is mistyped.

This is exactly why we’re doing a short 30-minute live session – not a sales presentation, but a walk-through of how contracting should work inside a modern recruitment system:

✔ creating and segmenting contracts
✔ tracking dates and renewals
✔ keeping correct rates and settlements
✔ linking contractors with clients and projects
✔ generating reports in one click

If your contracting still lives in Excel – even partially – you’ll get a lot from this session.



Final reflection

Even in a slower market, contracting can be the most reliable, predictable revenue stream an agency has.
But only if it’s managed with real structure, visibility, and accuracy.

Otherwise… it’s just a spreadsheet waiting to become a problem.

And that’s exactly why we’re hosting this webinar –
to show how agencies can turn contracting from chaos into control, without reinventing their whole process.

👉 See you on Thursday, December 4th.
(And yes – this might be the most important 30 minutes you spend on your operations this quarter.)

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