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How Back Office Support Cuts Staffing Agency Costs

Posted by Corinne Camara

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Jan 21, 2019 9:00:00 AM

How_Back_Office_Support_Cuts_Staffing_Agency_CostsMost agencies operate on a slim profit margin, with most of their gross margin eaten up by overhead expenses like payroll. Other administrative functions can add to your overheads. Some statistics suggest the staffing industry is incredibly capital intensive, with most of what you make going right back out again.

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At some point, most staffing agency owners wonder how they can cut staffing agency costs and improve their profit margins. In an environment where rising labour costs are a reality, it may seem impossible. Back office support might be the answer you’re looking for.


How Can You Cut Staffing Agency Costs?

There are a few different ways you can go about cutting costs around your staffing agency. Some of them are more practical than others.

Labour costs are one common area staffing agency owners focus on. In an environment where labour costs continue to rise, agency owners may focus on curbing on-call shifts or overtime. Others may focus on limiting benefits like health insurance or vacation time.

Your own agency operations are often more under your control. You can look for an office with lower rent, for example, or you can opt not to implement new staffing agency software. You might decide to turn down the heat or turn off the lights to save on your energy bill.

Some of these measures won’t be popular with your staff. Another strategy is getting the right back office support for your agency. This solution is likely to be much more welcome.


What Is Back Office Support?

Back office functions are the administrative functions you have to complete in order to keep your doors open. They include payroll and compliance monitoring.

They aren’t your core activities, and they aren’t usually revenue-generating tasks. As a result, they tend to take you away from those core functions, which limits your capacity to increase revenue.

Getting the right support can help you get back to those core activities. You can generate more revenue as a result. This is just one way back office support helps staffing agencies. It can also help you cut costs.


Saving Time and Saving Money

Think about your areas of expertise. Chances are you’re not an HR specialist or a payroll professional. You might manage the bookkeeping, but it’s a long, arduous process. You often make mistakes.

Not only are you being taken away from revenue-generating activities, you’re also increasing the risk of error. When it comes to bookkeeping, compliance, HR, and payroll, those mistakes can be costly.

Why not let the experts handle these tasks instead? Bookkeepers, HR specialists, and payroll professionals can streamline your back office functions. They’ll complete these tasks more efficiently, which saves you both time and money. It can also save you from making costly mistakes.

This is how the right back office support can cut staffing agency costs. It reduces the amount of time spent on activities that don’t generate revenue, and it also helps you avoid mistakes that might cost you otherwise. Completing tasks efficiently and correctly translates into lower costs.

It also improves productivity across all of your business activities.


Is It Time to Invest in Back Office Support?

For many staffing agency owners, getting back office support looks like an expenditure, rather than a cost-saving mechanism. As demonstrated, it could help you save even more.

If you’re looking for ways to cut staffing agency costs, consider the back office support you have. It may be time to invest in a support solution for your business.


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Topics: Back Office Service Provider

Corinne Camara

Corinne Camara, an expert in the recruitment field with over 10 years of experience in the staffing industry, is a business development specialist at The Staffing Edge. She previously worked at Apple One as a recruitment specialist and needed a change from the day-to-day recruiting, but still wanted to remain in the industry. Corinne’s knowledge and expertise gives her an edge in helping new members understand the back office model. Corinne has the unique ability to relate to current and new members; she understands their business and day-to-day struggles. She feels rewarded when she helps onboard a new member to outsource the worry and help them see their profits grow. Outside of work, Corinne enjoys spending time with her children, home improvement projects, interior design, and painting.
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