The Staffing Edge Blog

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Laura D’Andrea

Recent Posts by Laura D’Andrea

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

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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

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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

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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.

how-a-complete-back-end-solution-helped-a-staffing-agency-get-started

Topics: Compliance and Legislation

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

Posted by Laura D’Andrea

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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.

how-tse_s-back-office-support-helped-a-staffing-agency-expand-nationally

Topics: Payroll

4 Challenges Staffing Firms Face in Their First Year

Posted by Laura D’Andrea

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Jul 11, 2018 9:00:00 AM

4-Challenges-Staffing-Firms-Face-in-Their-First-Year-compressorStarting a staffing firm is a big venture, and the road to success is paved with obstacles. No matter how well-prepared you believe you are, you’ll likely face some of these common challenges for first-year staffing firms. 

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

Knowledge is key to overcoming any challenge, so make yourself aware of the bumps and ruts you’re likely to face on your path. It will make the journey smoother, but no less exciting.

1. Recruiting Recruiters

Staffing firms that are just getting off the ground will face their first challenge in finding talented recruiters to help them build their candidate pipeline. While these recruiters do exist, you may have some trouble attracting them to work at your firm during your first year of operations. 

Your competitors are likely the problem here. They can offer the most talented recruiters better benefits or higher salaries. They may offer more flexibility or other “perks” that entice recruiters to work with them. 

What can you offer? As a smaller start-up, you’re likely able to offer some things the bigger firms can’t. One of those may be employee development and advancement. You might have more flexibility, or perhaps you can offer a unique benefit or compensation structure.

2. Getting the Word Out

As a first-year firm, you may not have the resources available to you that larger staffing firms do. You might pare back on marketing campaigns, if the budget for them even exists at all. 

It’s crucial to invest in marketing in a staffing firm’s first year. The market is crowded, and neither clients nor job seekers will see you if you don’t get the word out somehow. Marketing is the most effective way to make yourself known to the people you want to work with. 

Think about effective and low-cost solutions for your business. Search engine marketing can be quite cost effective. Social media may cost you next to nothing. Both can help you gain brand recognition and put you in front of the people you want to work with.

3. Legal Compliance

Staffing firms in their first year often operate on a skeleton staff with relatively few resources. If business picks up, you may find yourself quickly overwhelmed by demand. The technology you’re using may not be equipped to handle the number of clients you’re working with or the number of applicants you have.

In this situation, it becomes more difficult to ask people to keep an eye on legal compliance. What’s more, you and your team may think you have a good grasp of what it takes to be compliant, only to find out later you’re not. This could be because you don’t have a senior expert on your team, or it could be because the legal field changes so rapidly.

Remember to give your compliance activities the time and attention they need. Doing a little bit of extra work now is better than undergoing an audit or facing a lawsuit later on.

4. Back Office Challenges

Compliance is just one of the back office tasks staffing firms need to be concerned about. Other back office challenges abound, including payroll, benefits administration, and more. Staffing firms in their first year often face challenges stemming from these tasks.

You can streamline your back office operations and surmount the challenges associated with these functions in a few ways. One way is to ensure you invest in the right technology, train your team, and hire an expert for your team. Another easy way to solve the issue is to partner with a firm offering back office solutions for staffing firms.

These are just some of the most common challenges facing a staffing firm in its first year. Remember all challenges can be overcome, and most of these obstacles have easy solutions.

A CEO’s Guide: Online Marketing for Staffing Firms

Topics: Staffing Agency

How to Improve Client Retention in Your Staffing Firm

Posted by Laura D’Andrea

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May 25, 2018 9:00:00 AM

How_to_Improve_Client_Retention_in_Your_Staffing_FirmAn important factor in running a successful staffing firm is ensuring your client retention rate is high. Your client retention rate is a good indicator of how effective you are at filling orders and keeping customers satisfied. If you’re able to deliver on the solutions you propose, and in a way that clients respect you for, then you’re on the right track. Many firms fixate on growing their businesses and finding new clients, but it’s equally as important to ensure your long-standing clients don’t leave for different firms due to poor customer service.

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

What are the best practices for improving your client retention? There are as many strategies out there as there are staffing firms in this competitive gig economy. We argue that the best practices you should focus on are those that amplify your ability to complete core business tasks.

The more proficient your staffing firm becomes at communicating with clients and fulfilling their orders to the letter, the better your chances are at greatly improving your retention rate. With all the above in mind, find our best practices that make up a strong strategy for client retention improvement below.


Prioritize Relationship Management

The fastest way to lose your current clientele is to treat them like numbers. If you want your client relationships to last past a year, you need to connect with them in a genuine manner. You’re helping them find staffing solutions, yes, but they are also people who you’ve made valuable partnerships with while doing so. Cultivate these partnerships by regularly touching base with them, even after you’ve filled their work orders.

Some ideas for ways to connect or follow up with clients are sending greeting cards, having relaxed lunch meetings, or even just sending a simple e-mail to let them know they are valued.


Be Prompt in All Your Administrative Duties

Clients greatly appreciate a staffing firm that is fast and efficient. It’s not enough to just talk the talk; you need to walk the walk by demonstrating your administration is top notch. Late invoicing, shoddy compliance, or forgetting that you have work orders to fill doesn’t reflect well on your brand.

Make sure your back office tasks are taken care of with proactive staffing solutions. Automating your admin busywork allows you to focus on core tasks, such as ensuring clients are satisfied with your placement process. When your staffing firm’s talent pipeline and its infrastructure are properly maintained, clients will notice how easy, efficient, and stress-free their dealings with your firm are.

Your placement process should be smooth and easy with your clients. Your retention rate soars when you can quickly offer the talent that fits well with their companies, while also ensuring on-time invoicing and documentation. Knowing they can trust your firm for high performance no matter how quickly they need to fill staffing gaps goes a long way.


Become Your Clients’ Go-To Expert

Lastly, you should always be honing your specialization or niche as a staffing firm. You landed your current clientele because they had hiring challenges that your firm was uniquely qualified to solve. Make an effort to remain at the top of your game in your niche by implementing thorough training for your newer recruiters and salespeople, researching the latest trends for the industries you provide talent for, and listening to clients.

Improving client retention is a mix of relationship management and acting as a knowledgeable consultant. That goes both for staffing veterans and those looking to start a successful staffing firm.


Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Staffing Agency

How to Build an Effective Recruiting Pipeline

Posted by Laura D’Andrea

|

May 16, 2018 9:00:00 AM

How-to-Build-an-Effective-Recruiting-Pipeline-compressorThe lifeblood of a staffing agency is its roster of skilled candidates. Without a steady stream of talent to draw upon for clients, you will experience frequent productivity slowdowns. That’s why you shouldn’t just hire talent on-demand for the moment but constantly build your network of talent so you can always be ready to fill work orders for clients. In other words, you need to optimize your recruiting process. 

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

One strategy for optimizing your process is to build an effective recruiting pipeline. An effective pipeline sources a talent pool that will be available whenever clients need candidates for specific roles. Growing your candidate roster proactively allows your staffing agency to become much more flexible with its solutions, attracting a greater number of clients and retaining current clients. 

If you want to know how to build an effective pipeline, check out our key tips below.

Attract Top Talent with Compelling Employer Branding

One of the main goals of the recruiting pipeline is to have skilled candidates seeking out your staffing agency. Instead of your staffing agency constantly reaching out to find new talent, the best candidates on the market will apply to your staffing agency without your recruiters reaching out to them. The most effective way to improve the attraction rate for your staffing agency is to make your employer brand compelling. 

In the digital age, most candidates are going to find your staffing agency via the internet. Whether these candidates find your staffing agency by a Google search, on social media, or by other means, they should see your employer brand as forward-thinking and emphasize your unique expertise. As such, you should harness a comprehensive online marketing strategy that ensures you have a presence on all relevant business sites and social media.  

Candidates want to engage with employer brands that have great reputations. On your website, its blog, and your social media profiles, communicate your staffing agency’s benefits. If you haven’t already been cultivating your employer brand, make sure you start making marketability more of a priority.

Guarantee Candidates a Fair and Punctual Payment Schedule

Staffing agencies often miss out on the best talent because they can’t guarantee their candidates a regular paycheque. If you want a pipeline filled with skilled candidates, you need to be capable of offering competitive compensation. You can do that if you get payroll financing and outsource your agency’s payroll administration

Outsourcing payroll and getting financing ensures you can pay your workers on time, no matter the account status of your clients. Experts in back office support will handle payroll administration, compliance, paperwork, and delivery. Access to payroll financing will ensure that you always have enough cash flow to pay candidates on time. 

You don’t want to be known as the staffing agency that pays its workers late. Outsourcing can help save your reputation.

Streamline Your Applicant Tracking and Placement Process

You can also automate your admin process, allowing your pipeline of candidates to easily be placed when clients ask for specific roles to be filled. Automate your applicant tracking and your client relationship management, so that you can swiftly assess candidates and organize their data for easy access later on. For your pipeline to be effective, you need to optimize the infrastructure that facilitates your recruiting process.

Ultimately, when your recruiting pipeline is built, you should be able to generate and cultivate many leads. As long as your staffing agency continuously improves and markets its brand, both online and by its actions as an employer, you will stay on track and improve your pipeline.

Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Staffing Agency

How Much Is Your Agency Spending on Payroll Processing?

Posted by Laura D’Andrea

|

Apr 30, 2018 9:00:00 AM

How-Much-Is-Your-Agency-Spending-on-Payroll-Processing-compressorYou must ensure that you can pay your workers on time, every time, despite the predicament of upside-down cash flow in the staffing industry. That being said, securing proficient payroll processing shouldn’t cost your staffing agency a significant amount. Often, agencies end up spending too much with the best intentions of keeping their payroll efficient and consistent. Your agency might be caught in a similar cycle of spending to stay on top of processing without realizing there are more affordable options available. 

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

If you’re concerned about how much your agency might be spending on payroll administration, keep reading. There are effective solutions to overspending on payroll that can save you time and money.

Why a Line of Credit Isn’t an Ideal Solution

The main issue with payroll processing is that there often isn’t enough cash to keep a consistent pay schedule. You know the consequences of breaking your workers’ trust, however, so you seek a solution like a line of credit to make up the difference when your clients can’t pay you on time or they default on their payments. 

While a line of credit will provide you with cash at the outset, issues will soon arise if you rely solely on this solution. For one, you cannot predict the ups and downs of temp and contract staffing. If your agency sees sudden growth, you cannot count on the bank to increase your line of credit when you need it most. There are also interest fees to take into consideration, which can add up incrementally over time and will certainly become a problem if your agency experiences a slow season for staffing. 

A line of credit isn’t the worst solution for your payroll admin, but at the most, it’s a short-term fix to an ongoing issue.

Factoring Firms Mean More Gambling with Service Fees

Another solution your agency might be implementing is a partnership with a factoring firm. There are advantages to using a factoring firm over a line of credit, including advances of 70-90 percent of your invoice amount and no credit checks. With a factoring firm, you don’t have to wait on your clients’ payments (which could vary between 30 and 90 days) before processing payroll, but you will still be stretching your resources thin. 

Why? Because the catch of selling your invoices or accounts receivable to a factoring firm is that your staffing agency must remain financially sound enough to handle the considerable service fees. A factoring firm typically charges anywhere from 2-6 percent of your invoice amount. 

In other words, factoring firms could work as a stopgap measure while you work to build up enough of a roster of candidates and clients, but you’ll always be wrestling with service fees.

Partnering with a Back Office Services Provider Accounts for Flexible Needs

Your agency needs a payroll processing solution that won’t keep you in the red to ensure cash flow. Partnering with a back office services provider that knows the staffing industry can account for the flexible needs of your agency.

A provider like The Staffing Edge offers versatile solutions in the form of financing, receivables insurance, credit checks for prospective clients, and outsourced payroll processing and bookkeeping.

You’ve worked hard to establish your staffing agency. Make certain you have the payroll processing tools to help you compete with the big staffing firms.

Things You Need to Know When Starting a Temp Staffing Agency

Topics: Payroll

5 Ways Your Agency Will Benefit from Offering Clients a Contract Staffing Solution

Posted by Laura D’Andrea

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Mar 16, 2018 9:00:00 AM

5_Ways_Your_Agency_Will_Benefit_from_a_Contract_Staffing_Solution.jpgContract staffing can unlock a lucrative revenue stream for your agency. We know you might’ve heard nightmare stories about sky-high paperwork and even more admin duties to add to your daily operations, but there is a way to enjoy the benefits of contract staffing while minimizing the pain of accompanying paperwork and compliance work.

Download "10 Things You Need to Know When Starting a Temp Staffing Agency"

Currently, the gig economy is booming. That means employers prefer contract staff in many sectors. Now is a great window of opportunity for your agency to jump on board and offer clients a new solution: contract staffing.

There are more ways than ever before to tackle the potential issues of contract staffing in Canada. But first, are you curious how your agency will benefit from offering such a staffing solution? Check out five benefits below.


1. Gain More Clients

The first obvious benefit is one we’ve already touched on a bit above. When you can provide the type of staffing that’s in demand, your agency will attract more clients by default. Offering a contract staffing solution means starting off on the strongest path if your agency is relatively new and improving your on-target earnings considerably if you’re a more established agency.

Clients in IT, HR and administration, construction, and even medical fields are looking for contract staff because it affords them more flexibility for their projects and helps them fill empty roles quickly.


2. Retain More Clients

This second benefit comes part and parcel with the first. When your clients’ demands are easily satisfied by your contract staffing solution, your agency will retain more of its clients because they’ll know they can trust your performance rates. Of course, the strength of this benefit is enhanced if your agency has chosen a good niche and knows its strengths, both of which are keys to growing your agency.

Offering contract staffing services gives your clients options for their staffing needs, including cost effectiveness and better access to the skills their companies lack. Happy clients translate to a great brand reputation for your agency.


3. Offer More Variety for Candidates

Some of your talent pool might prefer contract work and the variety it provides. Some candidates are looking to flex their skills in various roles and projects. Others want to test the waters of opportunity for a specific industry by taking on multiple contracts.

Consider the fact that offering a contract staffing solution is also beneficial to your candidates, improving retention for skilled workers at your agency as well.

In the age of the side hustle, increasing the amount of flexible work available for your candidates is always a good idea. Nearly a quarter of the Canadian workforce is currently made up of temporary workers and self-employed individuals because they’re looking to achieve better work-life balance.


4. Agency Costs Are Reduced

Contrary to some myths held about contract staffing, your agency will be able to manage its resources with such a solution. Your agency will pay only for the time worked on a contract, as opposed to permanent staffing where you will be paying for an indefinite period of time according to your agency’s schedule. If you offer both permanent and contract staffing, then your agency will actually be able to generate more revenue between the two, with extra security for the leaner months.

Since contracts are set for an exact period of time, your agency will see less HR and payroll paperwork in some instances.


5. There Are Back Office Providers Who Can Take Admin off Your Hands

Last but not least, your agency doesn’t need to fret endlessly over matters of compliance, payroll, and HR admin anymore. A Canadian back office provider can act as an extension of your daily operations. These providers are experts in business legislation regarding contract staffing.

So, what are you waiting for? Offer contract staffing as a solution and see your agency’s success soar!


Unlock a Lucrative Revenue  Stream With Contract Staffing

Topics: contract staffing

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