The business world is fierce. It’s dog eat dog. And the national firms—the ones with the best technology, the biggest budgets, the most employees, and the biggest customer base—are usually the ones that beat out the little guys. Operating an independent staffing agency can be tough when you have so much competition. And considering the staffing industry is currently booming, there’s more competition than ever before.
So how can you stay profitable? How can you operate at the same level as national firms? You can get the high-quality support that you need by outsourcing some of your day-to-day operations to a back office service provider.
Here’s how outsourcing will help you stay on par with the big conglomerates.
As an independent staffing agency owner, you have probably already faced your share of cash flow problems in the past—you might be dealing with them right now, too. If not, you’re one of the lucky ones. Most small staffing companies struggle with liquidity. The staffing industry works with upside-down cash flow—firms must pay their bills, debts, and workers before they get paid by their clients.
For national firms, this isn’t an issue. They have the money they need and more. But for smaller staffing agencies, this can lead to serious issues—even bankruptcy. A back office solutions provider can finance your payroll. This means that it will pay your workers for you—from its own bank account, and on your schedule. You’ll never have to worry about being able to pay your workers on time.
Insurance is a really serious matter in the staffing industry. You have to protect your staffing agency, your clients, and your workers from myriad potential hazards and challenges. But as a small agency, you don’t have the funds needed to get top-of-the-line insurance to protect your investment. You might settle for less than you need, which can really put you in a bad situation.
You can get the increased buying power so you can get the best insurance that national firms have by partnering with a back office solutions provider. Providers work with dozens, if not hundreds, of other agencies in the industry, and so they can increase the purchasing power of the little firms, which allows them to get the best insurance that they need for adequate protection.
More Time to Focus on Critical Tasks
One of the biggest advantages of partnering with a back office solutions provider is that you can outsource the administrative tasks that take up all of your time, like payroll, human resources, and compliance. When you’re not spending hours every day on these tedious and mundane responsibilities that don’t generate revenue, you can get back to the work that really matters. You can focus more on sales and service. You can brainstorm fantastic new marketing activities. You can put more time into a possible expansion. You can focus on growing your staffing agency and your profits instead of being tied down because of administrative tasks. All the while, this non-revenue generating work will be handled expertly, efficiently, and accurately, so you won’t have to worry about it in the back of your mind.
National firms are equipped with the best technology on the market. They have huge budgets that allow them to get state-of-the-art applicant tracking systems, financial reporting software, and customer relationship management software. This technology helps them to streamline their operations for reduced costs and to create more efficiency in all of their departments, allowing them to operate at top performance.
When you partner with a back office solutions provider, your staffing agency will benefit from access to best-in-class technology and proprietary software, so you can better compete with the big guys in the industry. You won’t be left scrambling inefficiently because of a smaller budget.