The Staffing Edge Blog

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Laura D’Andrea

Recent Posts by Laura D’Andrea

5 Secrets to a High-Performing Independent Recruiting Services Business

Posted by Laura D’Andrea


Mar 6, 2019 9:00:00 AM

5_Secrets_to_a_High_Performing_Independent_Recruiting_Services_BusinessYou’ve reviewed your resources, and it’s time. You’re going to make the leap to running your own independent recruiting services business. Or maybe you’ve already taken this step and you’re now in the middle of learning how to grow your business.

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In either case, you’re asking what the secrets are to ensuring success. What can you do to turn your start-up into a high-performing powerhouse in the recruiting industry?

These five secrets will help you unlock your business’s potential.

1. Independent Recruiting Services Go Niche

As an independent recruiter, you’re likely wondering how you can compete with the large, national staffing firms. They seem to service every industry across every part of the country. How can you possibly go toe-to-toe with them?

One secret for those offering independent recruiting services is to go niche. Instead of going wide, think narrow.

You no doubt have expertise in one area or another, and you may be able to offer more in-depth knowledge in the technology industry or the manufacturing industry. This is a competitive advantage for a smaller business like yours; it allows you to focus your limited resources on an area you excel in.

If you want better performance, think depth over breadth.

2. Innovate with Your Recruiting Services Offerings

What kinds of offerings do you provide for your clients? If you only offer permanent placements, it’s time to rethink this strategy.

You may not want to go wide in the sense that you offer services to all industries or all geographic areas, but you should offer a wide array of services in the areas you specialize in. Your clients in the manufacturing industry will know they can come to you for all their hiring needs.

A great first step is offering contract staffing services. This may seem like the domain of the big staffing firms, but it’s easier than ever for independent recruiters to offer this option to their clients.

3. Work with a Back Office Provider

If you want better performance for your independent recruiting services, it’s time to take the administrative load off your desk. Functions like payroll and compliance are integral to your business, but they’re also bogging you down.

If higher performance is on the list, it’s time to send those tasks to someone else. Team up with a back office provider to find operational efficiency. With your time freed up, you can get back to your core tasks.

4. Focus on the Experience

Ask yourself a couple of questions. Why do your clients keep working with you? Why do your job candidates come back again?

In the past couple of years, there has been more talk about the experience of working with an independent recruiting services business. You’ll want to think about both the candidate experience and the client experience.

Pinpoint why your clients want to work with you. If there were clients who parted ways with you, ask yourself why they didn’t come back and what you could do to change it. Ask your current clients what they wish you could do better.

The same is true of candidates. Ask why they love working with you, and ask what makes it less pleasant. Focus on improving the candidate experience to keep job seekers coming back.

5. Invest in Your Technology

Take a moment to consider the technology you’re using. If your systems are outdated, you may not be able to perform the way you want to. New technological tools will help you improve efficiency in the business.

In turn, you can improve operations by leveraging these new technologies. Can you improve the screening process for candidates? Does a new applicant tracking system mean it’s easier to sort the best candidates from the rest?

These tips are designed to help you transform your independent recruiting services business. If you want to power performance, look no further.


Topics: Independent Recruiters

Why Growing Staffing Agencies Need to Consider External Back Office Support

Posted by Laura D’Andrea


Dec 12, 2018 9:00:00 AM

Why_Growing_Staffing_Agencies_Need_to_Consider_External_Back_Office_SupportAs the world of work continues to transform, more employers and employees alike are looking at flexible, contract, and temporary work arrangements.

Download "Running a Staffing Agency: The Who, What, When, Why, and How" Guide

This has provided staffing agencies with unique growth opportunities. A partnership between agency and client can help employers meet their staffing needs quickly and easily. A partnership between agency and candidate, on the other hand, can help candidates meet their needs for learning, development, and flexibility.

In this environment, many agencies are experiencing growth. If you have a growing staffing agency, you’ve no doubt been faced with some of the common “growing pains.” From difficulties with cash flow to problems in payroll and beyond, you might be wondering what you can do to smooth things over and keep your business growing steadily.

External back office support might be the solution you’re looking for. Here’s why you need to consider this option for your business.

What Is External Back Office Support for Staffing Agencies?

It’s best to start by defining external back office support.

Most businesses, including staffing agencies, have many administrative functions. This includes payroll, accounting, compliance, and other human resources functions. These jobs are often time consuming and they must be completed, but they aren’t the core of your business operations.

More often than not, these back office functions take you away from the true tasks of your business. For staffing agencies, core tasks include gaining new clients and finding and hiring new candidates.

External back office support turns your administrative functions over to a third-party support provider. This then frees up your time to focus on your core tasks.

What Do External Back Office Support Providers Do?

As discussed, back office support for a staffing agency could include any number of administrative functions. This might be your compliance monitoring activities, payroll, or bookkeeping.

The expert team employed by your third-party provider also helps by offering advice and feedback. Their knowledge and experience make them ideal resources for you to draw on when you have questions.

Being able to rely on this team allows you to free up your own team to focus on the jobs that really matter to the business. Tasks are still completed properly and on time, and you get expert insight.

What Are the Benefits of This Support?

The biggest advantage of back office support for staffing agencies is time. You and your team members are able to focus on the things you’re best at. More will be accomplished around the business. Core functions won’t go neglected as you no longer need to deal with the fine print and the paperwork.

External back office support can also save staffing agencies money. This kind of support reduces the amount of time you need to spend on administrative jobs. Overhead costs can thus be reduced. Expert advice may also save you money by helping you avoid costly mistakes.

Finally, staffing agencies can focus on increasing growth even more when they have the right support in the back office. If you’re currently experiencing growing pains or feel like you’ve hit a growth ceiling, it could be time to talk to an external back office support provider.

Do You Need Back Office Support?

It can sometimes be difficult for staffing agency owners to tell when they need external support. There are signs you can watch for.

If you think it might be time to get some help, talk to a provider today. They can help you assess your needs and assist you as you continue on the path to continued growth.


Topics: Back Office Service Provider

5 Tips to Help Your Staffing Firm Attract Better Candidates

Posted by Laura D’Andrea


Nov 28, 2018 9:00:00 AM

5_Tips_to_Help_Your_Staffing_Firm_Attract_Better_Candidates-1The gig economy in Canada has continued to grow, and this change has been pushing the staffing industry as well. As the holiday season approaches, more businesses are ramping up their production, and that means there’s more demand for workers and staffing services than almost any other time this year.

Download "Running a Staffing Agency: The Who, What, When, Why, and How" Guide

As you grow into 2019, you want to keep your momentum. There’s just one problem. You aren’t attracting enough of the right candidates for your staffing firm.

In fact, it’s gotten to a point where you’re now asking yourself, “How do I find the right candidate for a job?”

To begin, you’ll want to be sure you’re paying attention to the job descriptions you’re posting and where you’re posting them. You’ll also want to employ the right technology to assist you with the candidate screening process, as well as interviewing. Throughout the process, you should also be paying attention to the candidate experience.

Not sure how to find the right people? Use these five tips to help you find the candidates your clients need.

1. Focus on the Candidate Experience at Your Staffing Firm

This first thing you should do if you want to attract better candidates for your staffing firm is to shift your paradigm. Yes, you want to find the right people, but have you thought much about what you’re providing to the candidates who do apply to work with you?

This is a common oversight for staffing agency owners. Instead of focusing on how to attract the right people, think about the candidate experience. How could you make it better? If candidates have nothing but good experiences, they’ll be more likely to recommend you to others, as well as take your employment offers.

2. Write Better Job Descriptions for Your Postings

Another common issue is poor job descriptions posted by staffing agencies. What you say about the roles you’re advertising has a big impact on who applies for the position.

If you’re not attracting the right kind of talent, take a look at the job descriptions. Vague criteria and generic skills listings make it less likely you’ll attract the people you really need. Revisions may be in order.

3. Use the Right Staffing Agency Technology

What kind of technology are you using to support your efforts? If the answer is none, you’d do well to adopt staffing agency specific software.

Even if you are using a program, you might want to review its features and capabilities. How old is it? Can it help you search candidates by keywords or other filters? If not, it’s time for an upgrade to the latest in applicant tracking systems.

4. Spread Your Net Wider

Where do you post open positions with your staffing firm? If the answer is LinkedIn alone or the generic job boards, you may have found the reason you can’t seem to find the right candidates.

Take a look at more specialized job boards if you need skilled workers in particular fields. You might also want to widen your networks, posting to more social media channels or other online forums. Even heading out to a local job fair or university campus could help you find more of the right people.

5. Use Better Screening Techniques to Sort the Best from the Rest

The final thing you can do to help your staffing firm find more of the right candidates is to improve your screening efforts. You may actually be finding the right candidates, but they’re awash in a sea of underqualified applicants.

Better screening can help you sort the best from the rest when you receive too many applications.

If you’re still struggling to find the people you need, talk to the experts at a back-office service provider. They can help you by taking some of the administrative burden, leaving you free to focus on people.

A CEO’s Guide: Online Marketing for Staffing Firms

Topics: Staffing Agency

4 Tips to Improve Health and Safety at Your Staffing Agency

Posted by Laura D’Andrea


Oct 24, 2018 9:00:00 AM

4_Tips_to_Improve_Health_and_Safety_at_Your_Staffing_AgencyOne of the challenges facing any staffing agency is establishing a good culture around health and safety. This can be a challenge in any workplace, but it’s especially difficult when you’re placing candidates within clients’ workplace environments.

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How can health and safety culture be improved?

There are many different things you can do to improve health and safety at your staffing agency. Creating a plan, educating employees and job candidates, maintaining records, and conducting site inspections are all important parts of promoting and improving a culture of health and safety for your staffing agency.

These four tips will help you as you strive for better awareness of health and safety.

1. A Staffing Agency Must Conduct Regular Client Inspections

You probably conduct regular safety inspections around your own office, but how often do you inspect client worksites? Since you’re sending candidates to these sites, you need to know they’re safe beforehand.

If a client’s site isn’t safe, you should note this and ask for changes to be made. You should hold back candidates until the client complies. You should also conduct inspections prior to taking on a new client. If a client doesn’t value health and safety the same way you do, you may not want to work with them.

2. Educate Candidates and Employees

You should strive to provide thorough health and safety training to both your employees and your candidates. Clients should assist in these efforts by providing their own training to candidates, but you can’t rely on the client.

A lack of information and knowledge is often the reason people work in unsafe ways. Providing them with training and education can help your job candidates work safe and smart on clients’ sites.

3. Create a Health and Safety Plan

Having a health and safety plan in your staffing agency is an excellent idea. Having a written plan allows candidates and employees to refer to it whenever they have questions.

The plan should outline how often you’ll conduct client site inspections and give information about how and when to report unsafe conditions. It should give employees and candidates information about how to proceed when there’s been an accident.

The plan can help keep everyone safer by giving them a reference point.

4. Maintain Records for Health and Safety

Records are another important part of improving the culture around health and safety at your staffing agency. How do they help?

Good records allow you to go back and see where issues arose. You can also check on how they were dealt with. This is particularly important regarding client site inspections. If there was an issue, you want to know how the client responded. Did they correct the issue in a timely manner, or was there a problem?

You can establish patterns for clients and common complaints. Records can help you learn what to look for and show you how to take proactive steps.

Improving health and safety culture is important, but it doesn’t need to be difficult. Use some of these tips at your staffing agency and see just how much things improve.


Topics: Staffing Agency

How to Get More Clients as an Independent Recruiter

Posted by Laura D’Andrea


Oct 3, 2018 9:00:00 AM

How_to_Get_More_Clients_as_an_Independent_RecruiterThere’s no denying the gig economy is growing in Canada and employers are looking for more flexible solutions. The recruitment industry is booming as a result, and you, as an independent recruitment professional, are poised to benefit from this.

Download "How a Complete Back-End Solution Helped a Staffing Agency Get  Started" Case Study

Some people, however, have noted a decline in the number of independent recruiters over the last few years. This has largely happened because of a shift away from permanent staffing services. Large agencies have been better able to offer contract staffing services, which has become the preference for many employers. These agencies can also offer permanent staffing solutions, which means they are your direct competitors.

As a result, independent recruiters have been noticing a reduction in the demand for their services. If you’re looking to turn things around and grow your business, however, there are ways you can get more clients.

Remind Clients of the Advantages of Working with an Independent Recruiter

The first thing you should do is appeal to your existing clients. Remind them about the advantages of working with an independent recruiter such as yourself. Large agencies may seem to provide a good solution, but in many cases, employers would rather work with independents.

The reasons for this are complex, but it often comes down to a better customer experience. When they receive more personalized service, your clients can build a valuable partnership with you.

Ask existing clients about their needs and respond to them as best you can. If you can, ask them to leave reviews or to refer you to others who may need your services.

Expand Your Service Offerings

If you want to win more clients, one of the best things you can do is expand your service offerings to better meet their needs. If your existing clients want contract staffing solutions, it might be time to add them. This may also appeal to potential customers who want to work with you but feel agency solutions might work better.

It’s easy to start offering contract staffing solutions, especially if you team up with a provider for back-office services. With the administrative tasks out of your way, you can focus on other aspects of the recruiting business.

Find Your Niche and Mine It

Many independent recruiters have a niche, specializing in certain segments of the market. If you already have a reputation for helping clients in a particular industry, then capitalize on this opportunity. There are likely others in the industry who could benefit from working with you.

Niches are necessarily limited, but a specialization can help you win more clients. As your reputation grows, more people will turn to you to provide the expertise and solutions they’re looking for.

Market Yourself

Do potential clients know your recruiting business exists? This is a problem for many independent recruiters. You want to grow your company and win more clients, but it’s very difficult to do if no one knows about the business.

Take some time and design a marketing plan. Ask your existing clients how they heard about you or where they’d look to find another recruiter. Take a look at low-cost options like social media marketing and search engine marketing.

Getting the word out about your business is key to finding more clients for your business. If you have a niche, be sure to advertise on industry-specific websites as well.

You Can Grow Your Business

As an independent recruiter, you may have wondered if the gig economy and the new realities of a flexible workforce were going to limit your ability to grow your business. Instead, you should see them as opportunities you can capitalize on.

Using these tips, you can continue to grow your business and win new clients.

Unlock a Lucrative Revenue  Stream With Contract Staffing

Topics: Independent Recruiters

Independent Recruiters Can Easily Offer Fixed Contract Services. Here's How

Posted by Laura D’Andrea


Sep 17, 2018 9:00:00 AM

Independent_Recruiters_Can_Easily_Offer_Fixed_Contract_Services_Here_s_HowThere’s been an ongoing shift away from full-time, permanent employment towards fixed contracts and other flexible forms of staffing. Employers need more flexibility to weather the ups and downs of the markets.

Download "How a Complete Back-End Solution Helped a Staffing Agency Get  Started" Case Study

You may have noticed more of your clients are turning towards temporary solutions. What is temporary staffing?

Temporary staffing places workers with client companies for a fixed period of time, hence the term “fixed contract.” If a client knows they have a project that will last ten months, they may hire someone for those ten months. When the project is over and the ten months are up, the contract expires.

As your clients look for more temporary solutions, you may be wondering how you can get in on the action.

Independent Recruiters Need to Shift to Fixed Contract Services

Independent recruiters typically have offered full-time, permanent placement services for their clients. They work closely with the client to source the right candidates.

More of your clients are likely looking for temporary and flexible solutions for their workforces. The demands of the market require it from today’s employers. As a result, many of them may be looking at large staffing agencies to provide a solution.

Would they stay with you if you could offer them fixed contract services? For most independent recruiters, the answer is yes. Your clients may have been with you for some time, and they know they can trust your expertise. They might be leery about moving to a large agency.

A shift to fixed contract services is just what independent recruiters need. Luckily, it’s easy to begin offering contract services.

Do Some Research

It might seem easy to offer temporary staffing solutions to clients. You could, in theory, just tell a client you can fill a temporary position for them.

Before you tell your clients you offer this service, make sure you understand the legal requirements of temporary staffing. Temporary workers are treated differently than full-time, permanent workers.

You want to be sure you’re offering services in line with the law.

Consider the Administrative Side of Things

One of the biggest differences between full-time, permanent placements and temporary staffing is who handles the HR activities related to the worker. In more traditional recruiting arrangements, the client takes on the worker as an employee of their company.

With temporary staffing solutions, the recruiter assumes the role of employer. You’ll administer payroll and benefits, health and safety, and compliance, among other things.

This can represent a challenge for independent recruiters. Luckily, there’s a simple solution. You can outsource the back office activities like payroll to a third-party provider. They already have the infrastructure to do this, so you can focus on sales and service.

Talk to Your Clients and Build Relationships

You don’t need to start from scratch when you begin offering fixed contract services. In fact, you can likely begin building on the same client base you already have. Most employers today use a mix of temporary, contract, and permanent workers, with a decided shift towards more temporary positions.

Talk to your existing clients, and ask them about their needs. Most of them will likely be pleasantly surprised to hear you can help them fill all of their staffing needs now. You may even be able to offer temporary-to-permanent staffing for some of your clients.

Be sure to continue building your relationships by providing quality placements, whether temporary or permanent. Show them you can find the right people, no matter what the assignment is.

How Can You Get Started?

If you’re ready to offer fixed contract services to your clients, talk to a back office service provider today. The back office is most often the biggest challenge facing independent recruiters. Finding someone to support your back office activities will mean you can start offering your clients a new level of service sooner.

Unlock a Lucrative Revenue  Stream With Contract Staffing

Topics: Independent Recruiters

4 Issues Every Other Staffing Firm Is Dealing with Too

Posted by Laura D’Andrea


Aug 27, 2018 9:00:00 AM

4_Issues_Every_Other_Staffing_Firm_Is_Dealing_with_TooCompetition in the staffing industry has never been higher. With more and more firms competing, the market has become more crowded. Unemployment is hovering around its lowest point in 40 years, which hasn’t slowed demand for workers. Instead, it’s created shortages and intense competition among employers.

Download "How a Complete Back-End Solution Helped a Staffing Agency Get  Started" Case Study

Staffing firms have to be lean and efficient to stay afloat in this kind of environment. It may be somewhat comforting for you to know almost every other staffing agency out there is dealing with many of the same issues you are. Perhaps more comforting to note is the fact that most of these issues can be dealt with effectively.

“How do I improve my staffing agency?” you ask.

To improve your staffing firm, take a look at the following issues, including payroll, compliance, technology, and the hiring process. These are common hurdles a staffing firm needs to clear.

1. Do You Use Technology Designed for a Staffing Firm?

Technology is one of the biggest drivers of change in the modern era. Computers and the internet have revolutionized the way people connect with one another to do almost anything. Business has most certainly changed because of technological advancement.

There’s no question you should be using some kind of technology in your staffing agency, but are you using the right tools and tech? There are special software solutions designed just for staffing firms like yours. If you’re not already using it, it’s time to consider what it can help you accomplish.

2. How Does Your Staffing Agency Find Candidates?

In such a tight job market, finding candidates is one of the most important tasks in your business. You need to be able to recruit the right candidates for your clients, and you need to do it quickly.

Other staffing firms struggle with this too. Do you use all the tools available to you? You should be spreading a wide net. You should also seek passive candidates as well as active candidates. Finally, once you’ve found the candidates you’re looking for, you need to be able to offer them something different from your competition.

3. Have You Considered Back Office Support?

Your back office is responsible for all of the administrative tasks in your staffing firm. From payroll to compliance, from benefits administration to bookkeeping, the back office in your agency takes care of so much for you.

Back office support helps your team accomplish more.

Your back office can be managed more effectively when you enlist back office support for your staffing firm. This can help you overcome some of the common headaches experienced by all staffing agencies.

4. Do You Need Help with Finances?

Another thing to keep in mind is the financial side of your business. What does your cash flow look like today? You may have a number of outstanding invoices, but your clients just aren’t paying. How are you paying your own bills? Are your employees being paid on time?

This is a very common challenge facing any staffing firm. You may have thought about solving the issue with bank loans or other financial products, but these solutions aren’t always the best option for those in the staffing industry.

You can consider some other solutions, such as payroll funding, to help improve your cash flow and smooth out payments in your business.

Improving your staffing firm is important, especially in this competitive environment. Fortunately, making changes doesn’t mean overhauling everything. With a few easy steps, you can make your staffing firm more efficient than ever before.

A CEO’s Guide: Online Marketing for Staffing Firms

Topics: Staffing Agency

Back Office Support Is the Answer to All Your Staffing Agency Headaches

Posted by Laura D’Andrea


Aug 20, 2018 9:00:00 AM

Back_Office_Support_Is_the_Answer_to_All_Your_Staffing_Agency_HeadachesRunning a staffing agency is no walk in the park. It requires plenty of grit, lots of effort, and a good deal of passion. Even with all those things in play, you’ll still run into some of the most common issues facing staffing agencies. The market is competitive, and in Canada, competition has been heating up. Support for your back office could be the answer you’re looking for.

Download "How TSE’s Back Office Support Helped a Staffing Agency Expand  Nationally" Case Study

What is back office support?

A back office service provider helps you take care of all the behind-the-scenes tasks in your business, including payroll, compliance, and other administrative tasks. Here’s how it could help you overcome some of the most common challenges staffing agencies face today.

What Back Office Support Does

Support for your back office is the answer to many of the issues facing your staffing agency. If, for example, you’re finding you have less and less time to deal with payroll in an effective and timely manner, back office support is the answer.

Support services for your back office deal with a variety of different tasks. You may need someone to execute payroll, as mentioned, or you might need someone to look after the books more closely. Another common service is help with compliance. Good support for the back office also provides other administrative services, including accounts receivable, payroll funding, and help with your taxes.

It should be obvious how support for the back office can help you tackle many of the time-intensive tasks facing your staffing firm.

How Do You Know You Need Back Office Services?

The next question most staffing agency owners have is how to tell they need support for the back office. Yes, administering payroll is sometimes a pain, but that doesn’t necessarily mean you need help.

It could be one sign, among others. If you’re struggling to finish up with payroll or cheques are always late, it’s probably time to engage support services for your back office. Other signs include a high rate of error and issues remitting to the Canada Revenue Agency. The CRA may even levy penalties or conduct an audit, which costs your business.

If other tasks are also going unfinished or neglected, it’s likely time to consider back office support for your business.

How Does It Help?

Many business owners see getting this kind of support as a “nice to have,” not a necessity. The truth is you don’t need to manage everything on your own. It could even be more cost effective to get a helping hand.

One of the reasons staffing agency owners resist partnering with a third party for their back office is that they’re concerned about costs. In the long run, however, back office support will likely cost you less. Late payments, tight cash flows and debt repayment, errors in payroll, missed tax credits, and more can run up costs for your business. With back office support, these costs are reduced or eliminated.

Proper support in the back office can help you get things done correctly and on time, each and every time. In turn, you can focus on the things you need to pay the most attention to, such as sourcing the right candidates, winning over clients, and placing the right people with the right businesses.

The Answer to all Your Troubles

Getting back office support may not seem that important, especially in the face of some of the issues a staffing agency can face. It’s probably one of the easiest and most robust solutions you can engage for your firm, however.

If you’re still wondering how support services for the back office could benefit your business, talk to a provider today. They can illustrate just how support services could benefit your business and allow you to keep growing.

Things You Need to Know When Starting a Temp Staffing Agency

Topics: Back Office Service Provider

The Staffing Agency’s Quick Guide to Bill 176

Posted by Laura D’Andrea


Jul 30, 2018 9:00:00 AM

The-Staffing-Agencys-Quick-Guide-to-Bill-176-compressorOntario and Alberta have opened the floodgates on employment legislation change in Canada. Other provinces are now seeking to follow their lead. On March 20, 2018, Quebec’s National Assembly introduced a new bill on employment legislation. Businesses need to prepare for some big changes, including new laws regarding wages, overtime, and leaves of absence. 

Download "How a Complete Back-End Solution Helped a Staffing Agency Get  Started" Case Study

Staffing agencies won’t be exempt from the requirements of Bill 176. In fact, the draft legislation includes some measures specifically addressing the operation of staffing agencies in the province. If you have operations in Quebec, here’s what you need to know about the proposed changes.

Requirements for Recruitment Agencies

Perhaps the clearest change for staffing agencies in Quebec is the requirement to obtain a licence to operate in the province. CNESST will act as the licensing body. Businesses are required to ensure their staffing agency partners have a valid licence. If a client business knowingly works with an unlicensed agency, they could face hefty fines. 

Similar to Ontario’s Bill 148, the Quebec bill also takes aim at wage scales for different classes of employees. Employees performing the same tasks will be entitled to equal pay, regardless of their employment status or the number of hours they work per week. This requirement extends to employees hired or paid through a recruitment agency. If the worker performs the same task as another employee at the workplace, the agency can’t pay them a lower rate. 

Bill 176 also seeks to change responsibility for wages, statutory holiday pay, overtime, and other paid leave. If the bill is passed, both client businesses and staffing agencies would become jointly liable for ensuring their payroll meets all requirements.

Benefits, Pensions, and Overtime

Another big change affecting businesses is new rules about differences in pension and employee benefits based on an employee’s hiring date. Benefit and pension plans enacted before the bill becomes law are exempt, but all new registrations to benefits plans and pensions will have to abide by this new rule. 

Another change you may want to look at is the right of employees to refuse work beyond their regular daily hours. In the past, employees could refuse to work more than four hours more. Up to four hours, they would be required to stay. Bill 176 seeks to lower the limit from four hours to two. 

Additionally, an employee may refuse to work overtime if their employer didn’t inform them of the additional hours at least five days in advance.

Leaves of Absence

The driving concern behind Bill 176 is what the provincial government calls “family-work balance.” This is one reason it provides so much in the way of overtime regulation. It also affects leaves of absence. If Bill 176 passes, employees will be entitled to three weeks of paid vacation after three years of continuous service as opposed to the current five years.

There are also changes to eligibility for leaves of absence. Employees will no longer need three months of continuous service to be granted leave in the event of an injury, accident, or other unforeseen events. If the employee has worked three months, their first two days of leave are paid.

Bill 176 also seeks to expand leave for those who need to provide care to family members, offering up to ten days of paid leave. The definition of “relative” has been broadened to include anyone for whom the employee acts as a caretaker. Employers will be allowed to request proof from the employee regarding their need for a leave of absence.

Bill 176 contains many changes with wide-reaching repercussions for businesses, including staffing agencies, in Quebec. You’ll want to keep a close eye on how the debates around the draft law develop. Be ready to make changes to your business practices in order to stay compliant with the law.


Topics: Compliance and Legislation

Why a Bank Loan May Not Be a Good Choice for Staffing Agencies

Posted by Laura D’Andrea


Jul 25, 2018 9:00:00 AM

Why-a-Bank-Loan-May-Not-Be-a-Good-Choice-for-Staffing-Agencies-compressorStarting a staffing agency is a big undertaking. The market is competitive, and it’s only heating up with unemployment at its lowest in 40 years. You’ll face many challenges in your first year and beyond.

Download "How a Complete Back-End Solution Helped a Staffing Agency Get  Started" Case Study

One of the issues facing staffing agencies at almost every turn is funding. You need consistent funds to pay your full-time employees and your candidates. You’ll also need to pay the Internet bill, the electricity bill, and so on. Your income comes from the fees your clients pay, but they’re billed in 30-day, 60-day, and 90-day intervals. Some of your clients may not always pay on time either.

In this situation, what’s the best option you have for creating consistent cash flow to keep the lights on? You may think it’s a bank loan. Bank loans can offer tax breaks and other incentives, such as lower interest rates than credit cards. You might be surprised to learn this isn’t always the best choice for staffing agencies.

The Costs of Bank Loans

One reason a bank loan isn’t always the right choice for staffing agencies is due to the costs. Taking on a loan creates a new debt for your business, which you then have to repay. Bank loans carry interest, which increases the costs of having the debt. Interest rates and market fluctuations can increase the costs of repayment as well. 

Loans can also be time-consuming. You’ll need to fill out an application. You may even need to create a business plan and present it before you can even be considered for funding. It can sometimes take months before the loan will actually be approved.

Spending this time and effort on obtaining the loan is a cost in and of itself. Time is money, as the old saying goes, so the more time you spend trying to wrangle a loan from the bank, the more money you’re actually spending on the loan.

It Doesn’t Solve Cash Flow Issues

Many staffing agencies take out a bank loan assuming the one-time injection of cash will solve their funding issues. If the issue is cash flow, however, a one-time bank loan likely won’t solve the issue. Most firms find they run through the loan money quite quickly, and then they’re right back at square one. The only difference is now they have an additional debt to pay. 

You need a longer-term solution for your business. Cash flow issues don’t resolve overnight. Instead, think about solutions than can offer you ongoing access to capital, allowing you to bridge the gaps in income and keep the business afloat.

What Can You Do?

You can see why a bank loan isn’t always the best option for staffing agencies. Now you’re wondering what the right option for your business is. 

Payroll financing is often the recommended alternative to a bank loan or even a line of credit. This alternative doesn’t require interest payments. How does it work? Payroll financing involved financing your outstanding receivables to secure immediate working capital. 

In doing so, you’ll sell your outstanding invoices to another company. They’ll give you a portion of the value of the invoice, which generates cash flow for you. They’ll then collect the invoice from your client and pay you the balance. This is a great option if some of your clients have a habit of being late with payment.

What’s Right for You?

You have more options than you think. Explore options for financing staffing agencies and talk to the experts today.


Topics: Payroll

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