Running a staffing agency can be both rewarding and lucrative. It’s also an extremely competitive industry, and the competition between firms has only been heating up as the Canadian economy has continued to grow and unemployment has hovered around its lowest rate in 40 years.
In these conditions, staffing firms must be operating at maximum efficiency to achieve the results they want—or even to stay afloat. These conditions affect big agencies, startups, and independent recruiters alike. There are many things you can do to help your agency run more efficiently. Lowering costs is one area you’ll likely pinpoint in your efforts. You may even look to backend support to help reduce administration costs.
What is backend support?
Support for the backend of your agency helps you with a variety of administrative tasks, including payroll, financing, bookkeeping, compliance monitoring, and other HR responsibilities.
Administration Tasks Keep a Staffing Agency Running
Administrative tasks are inescapable in virtually every industry, and the staffing industry is no exception to the rule. Admin tasks are ultimately what keep your firm afloat. After all, if you didn’t process payroll, your candidates wouldn’t get paid. Neither would your in-house staff. You likely wouldn’t continue operating for very long.
Other tasks, such as compliance monitoring, can help you avoid legal troubles, which can be costly. Good bookkeeping keeps you in the Canada Revenue Agency’s good books, helping you avoid penalties or audits.
It should be clear why administrative tasks in your back office are so important.
Staffing Agencies Spend Too Much on Admin Costs
Since admin tasks are so vital to an organization, it often seems to make sense that you carry a large amount of overhead on these tasks.
Another reality of staffing firm admin costs is that these tasks are often time-intensive. Payroll may seem straightforward, but it can become quite complex. Compliance must be monitored on a regular basis, as the legal framework is constantly shifting and changing. You may need to review your policies at any time of the year to make sure you’re still compliant.
Spending all this time on admin tasks can really add up. You may feel you have to pay as much as you do, because these tasks need to be completed.
Look for Backend Support to Lower Costs
Most staffing agencies could actually lower their admin costs. They can accomplish this by partnering with a back office solutions provider.
How does this lower costs? First and foremost, the provider is staffed by experts who are highly trained. They carry out these tasks day in, day out, and they use the latest technology to help them do it. All of this means one thing: They can get the job done, and they can get it done faster.
In turn, backend support lowers the costs of administration in your staffing agency.
Getting Things Done Right
The other way backend support can help a staffing agency lower admin costs is by ensuring things are done correctly in the first place. For example, you risk making mistakes if you handle your bookkeeping by yourself. These mistakes could cost you when the CRA decides to audit your books.
Backend support helps you avoid situations like this, so you can be sure you’re operating in compliance with the employment law and regulations.
The right technology and expert staff can lower the number of human-made errors. More accurate, timely reports and remittances are possible when you enlist the help of backend support for your staffing agency.
Is Backend Support Right for You?
In this competitive environment, almost every staffing firm could benefit from backend support. Lowering admin costs and improving efficiency are just two of the many benefits backend support can provide for your business.