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How to Improve Client Retention in Your Staffing Firm

Posted by Laura D’Andrea

|

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 Improve Your Staffing Agency’s Employer Brand

Posted by Ray Gonder

|

May 23, 2018 9:00:00 AM

How-to-Improve-Your-Staffing-Agencys-Employer-Brand-compressorAs a savvy staffing agency owner in the digital age, you’re probably aware of how important it is to have a strong employer brand. The most compelling employer brands help staffing agencies build a talent pipeline that enables them to stay productive all year long. 

Download a Staffing CEO's Guide to Online Marketing

A recent LinkedIn survey also discovered that a strong employer brand also does wonders for attracting younger demographics. Professionals under 40 years old are 61 percent more likely to consider engaging with your business if they’re attracted by your brand. That means the key to landing more skilled millennials, who make up one of the largest demographics of Canada’s workforce, you need to emphasize your brand. 

Curious about how to improve your staffing agency employer brand so you can reap the many benefits? Read on for a few significant tips you should be implementing in your strategy.

Demonstrate Your Expertise

Authenticity is the name of the game in employer branding, which is why you should invest in building a proficient online marketing strategy. Increase brand awareness by leveraging multiple internet platforms and social media channels. Today’s candidates like to do a fair amount of research on the brands they consider engaging with, and your staffing agency is well-served by demonstrating its niche expertise online. 

Make sure you have at least a website, blog, and relevant social media accounts (LinkedIn, Google+, Twitter, etc.). All content you create for these platforms should spread key insights unique to your agency’s niche, as well as ways to get in touch. 

Ultimately, you want your target candidates to trust you due to the knowledge you impart and the opportunities you have available for them. Employer branding helps you attract not just the best talent but those most aligned with your brand’s key attributes. The result of successful employer branding is a higher chance of a culturally fit recruiting pipeline.

Outsource to Make Time for Employer Branding

If you’re constantly drowning in paperwork, processing payroll, or reading up on the latest legislative changes, you likely won’t have any time to even think about your employer brand. 

If you partner with a back office services provider, you can outsource many tasks that often hinder your recruitment process. Such providers can handle your Canadian compliance matters, your payroll administration, and your HR administration, and even provide all-in-one proprietary software designed to handle applicant tracking, client relationship management, and financial reporting. With your back office taken care of, you can hone your recruiting skills and have the time you need to focus on employer branding.

Pay Your Workers on Time and Treat Them Well

Thanks to the internet, word of mouth can spread fast online. If you’re not paying your workers on time because you’re short on cash, the word will spread. Your employer brand will be damaged. Candidates won’t want to work with your agency.

The best staffing agencies use payroll financing to ensure they always have the cash flow they need for payroll. 

Also make sure to treat your workers well, from the interview all the way to the end of their contract. Others will hear about it if you don’t 

Your employer brand and its values should be present in all aspects of your business. Show your target market your agency is the agency they should work with.

A CEO’s Guide: Online Marketing for Staffing Firms

Topics: Staffing Agency

Why Staffing Agencies May Want to Seek Back Office Support

Posted by Shannon Dowdall

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May 21, 2018 9:00:00 AM

Why-Staffing-Agencies-May-Want-to-Seek-Back-Office-Support-compressorStaffing agencies spend a lot of time and resources trying to keep their administration up to current standards. Between trying to reduce the need for recruiters to do double-duty on paperwork and data entry, and managing your business in a compliant manner, your back office can derail your front office’s daily priorities. You need to focus on core business tasks in order to become a competitive staffing agency. 

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

The catch-22 of the staffing industry is that your back office is essential to the success of your front office, but your front office tasks are what drive your business. You need your recruiters to concentrate solely on using their expertise to source candidates and fill work orders. What’s a viable solution for staffing agencies? Consider seeking back office support.

Canadian Staffing Industry Standards Are Constantly Evolving

Back office support is key to staying on top of Canadian compliance. Your staffing agency must remain compliant no matter how quickly legislature changes. In worse-case scenarios, you could face major penalties (both monetary and legal) that will impact your business in ways that are hard to recover from. 

If staffing agencies want to keep their growth sustainable, no matter their size, they need to minimize the risk of non-compliance. When you outsource your back office, tasks like payroll, worker classification, and HR are taken care of. Back office providers can also serve as integral advisors on new developments to Canadian business legislation as well, keeping you abreast of new compliance regulations.

Flexible Payroll Financing Is a Crucial Asset

No matter how long you’ve been running your staffing agency, you’re probably more than aware of how difficult landing flexible payroll financing is. In the staffing industry, cash flow management is often difficult due to mismatched payroll schedules with your clients. Other liabilities can include clients defaulting on their payments and struggling to maximize ROI because of expensive payroll financing solutions like lines of credit or factoring firm partnerships. 

Back office support can offer flexible financing solutions that stop payroll liabilities before they happen. A back office provider can run credit checks on prospective clients and send regular account status inquiries to clients who are taking longer than usual to pay. There’s also payroll insurance that’s tailored to suit the needs of your staffing agency to ensure your workers are always paid on time. 

The more flexible your payroll financing becomes, the more your staffing agency can improve its bottom line. That’s why payroll financing that can handle the rigours of the staffing industry’s upside-down cash flow is a crucial asset.

Automation Streamlines Daily Administration

Lastly, staffing agencies will want to consider how back office support can reduce administrative busywork. Back office providers have proprietary software designed specifically for the staffing industry. One such proprietary software system, StaffTrak, has won awards. Applicant tracking, client relationship management, and financial reporting can be handled by staffing agency technology like StaffTrak.

For your staffing agency to compete with the big staffing firms, your infrastructure needs to be digitally transformed. And digital transformation is a process that expert back office providers know well. Make sure your staffing agency’s back office is optimized because it’s imperative to the success of your front office.

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

Topics: Back Office Service Provider

How Back Office Solutions Help Staffing Agency Startups

Posted by Chelsea Henry

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May 18, 2018 9:00:00 AM

How-Back-Office-Solutions-Help-Staffing-Agency-Startups-compressorSurviving the first couple years in business is challenging. There are many reasons why 50 percent of startups fail during the first two years, including starting a business that wasn’t relevant to the customer base, lack of competitor research, and mismanaged cash flow. Perhaps the most critical reason that startups fail, however, is the lack of infrastructure to sustain a fast-growing business. 

Download our free guide on everything you need to know about starting a  successful staffing firm.

The rise of the Canadian gig economy has accelerated growth for staffing agency startups. If you’ve chosen a high-potential niche to cater to, your agency will find its networks of candidates and clients rapidly expanding. And the more your roster grows, the more back office administration you’ll have to contend with. 

Staffing agencies can easily drown in paperwork if they’re not careful, which is why you need a dedicated back office solutions provider. Industry-specific providers help staffing agency startups integrate a robust infrastructure that enables them to succeed.

Relieve Your Front Office of Admin Double-Duty

When you don’t have an effective solution for balancing back office paperwork and front office recruitment and business development, your staffing agency startup will experience a sharp decline in productivity. The less time you have for your core duties like online marketing for your agency’s brand and sourcing talent for your clients, the more likely it is your agency won’t last beyond the two-year mark. 

Back office solutions providers can offer relief to your front-office staff. This relief comes in the form of specialized technology. 

Providers like The Staffing Edge (TSE) have developed award-winning software that can handle applicant tracking, client relationship management, and financial reporting all in one system. Automating your back office is key to your success because the startups that can offer consistent high-quality service are the ones that have the most staying power.

Keep Your Cash Flowing in the Right Direction

More so than other startups, a staffing agency struggles with payroll liabilities early on. Despite the high potential for profit, with many clients lined up to engage your agency for their hiring solutions, your cash flow is often upside-down. 

Since you’re the one paying your workers, but dependent on clients’ payments to give you the resources to do so, you need to ensure you have insurance for unexpectedly long gaps between paid invoices, not to mention instances when your client defaults on payments.   

Back office providers offer payroll financing and outsourcing options, including: 

  • Comprehensive insurance that can account for pay schedule inconsistencies, damages, and payment defaults
  • Credit checks for prospective clients
  • Account status inquiries
  • Custom payroll processing 

Your startup must become proficient at cash management if you want to harness your full potential. 

Stay Compliant

If you want to start a successful agency, you must make compliance a priority. Your agency’s reputation and legitimacy depend on remaining compliant.

Back office solutions providers like TSE are Canadian compliance experts and they can act as your advisors in matters of proper wages, health and safety regulations, remittances, worker classification and more. Your startup will thrive if it can prove to all parties involved that you value running a compliant agency that has the infrastructure to handle Canada’s booming gig economy and ever-changing legislation.

All the above solutions discussed together make a formidable strategy for launching a successful startup in the staffing industry.

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

Topics: Back Office Service Provider

How to Build an Effective Recruiting Pipeline

Posted by Laura D’Andrea

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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 to Evaluate Back Office Software for Staffing Agencies

Posted by Shannon Dowdall

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May 14, 2018 9:00:00 AM

How-to-Evaluate-Back-Office-Software-for-Staffing-Agencies-compressorIf you want to run a successful staffing agency in the age of mobile and online recruitment, you’re going to need to digitally transform your business. One of the most effective ways to automate your operations is to invest in software for staffing agencies. 

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

Software for staffing agencies focuses on streamlining your back office duties so that your front office can fully concentrate on core business responsibilities. Not all software is created equal, however. To ensure you get a system that can handle your workload and create greater efficiencies, you need to do some research. 

A recent study by Gartner has forecasted that companies will spend $3.7 trillion on IT solutions this year, with spending on software in the billions! A lot of this spending is part of a sunk-cost trap that staffing agencies can easily fall into. If you answer the questions we pose below, you’ll be able to evaluate back office software more effectively to ensure you’re investing in the right platform.

Does the Software Account for Common Industry Challenges?

This question seems simple but is imperative to answer in the case of software for staffing agencies. Whether your staffing agency is a small startup or a larger operation that’s been around for a few years, you need software that will account for common industry challenges. 

For instance, can the software you’re evaluating scale up applicant tracking and client relationship management for high volume, as well as provide payroll processing that’s compliant with current Canadian legislation? These are issues that will dog your productivity with endless bookkeeping and non-compliance troubles if your solution isn’t comprehensive enough. So, always pay attention to whether software addresses common staffing industry challenges.

Does the Software Update to Reflect Current Canadian Legislation?

We mentioned briefly that one of the common challenges software must solve is compliant payroll processing. Payroll processing is constantly evolving parallel to updates made to Canadian legislation. Think about all the major changes in wages, vacation pay, and personal emergency leave that Bill 148 brought to Ontario as of last November. 

If the software for staffing agencies you’re evaluating can’t update its functions to match current Canadian legislation, it’s not worth investing in. Canadian compliance is complex and constantly evolving, and you need to be able to keep up. 

Your agency will be best served by software that will help you keep all the ins and outs of compliance straight, with little to no errors in payroll or HR. The Staffing Edge’s (TSE) award-winning software StaffTrak has recently made four updates that address the changes that Bill 148 has brought to Canadian compliance. Your staffing agency can get into trouble quickly when non-compliance penalties begin to compound.

Is the Software an All-in-One Solution?

There’s a lot of software out there, and another easy way for you to fall into a sunk-cost trap is to purchase all your solutions separately. Instead of spending more money to acquire multiple solutions, your agency should invest in an all-in-one software system.

To be more specific, you’ll want a complete back-end solution. Often, you’ll run into individual software, like an industry-specific applicant tracker system (ATS) or client relationship management system (CRM) that handles specific functions well but can’t work well in tandem with each other. If all your solutions together make your back office more digitized, but no less cumbersome than before, what’s the use?

That’s what makes TSE’s StaffTrak software ideal for staffing agency back offices. StaffTrak combines an ATS, CRM, and a financial reporting system into one, resulting in a solution that addresses all common back office challenges. No matter what solution you invest in, your agency is always better off for evaluating a software’s viability beforehand.

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

Topics: Staffing Agency

How to Run a Successful Staffing Agency from the Ground Up

Posted by Mai Dowdie

|

May 11, 2018 9:00:00 AM

How-to-Run-a-Successful-Staffing-Agency-from-the-Ground-Up-compressorThe gig economy is booming, and more entrepreneurs are considering starting staffing agencies to take advantage of this boom. 

But running a successful staffing agency isn’t as easy as it may look. 

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

There’s a catch to learning how to run a successful staffing agency from the ground up. Your business’s compliance, administration, and financing must be top-notch right from the get-go if you want to succeed. If you want to know how to run a successful staffing agency and overcome these common industry challenges, then read on.

You Need Compliance Expertise

Canadian business legislation varies from province to province and is tricky to navigate on your own. Not to mention, there are often major changes made to employment standards. If you want to know how to run a successful staffing agency, the first step you need to take is ensure you’re compliant. 

Common infractions, like payroll miscalculations and late or missed remittances, can cost you thousands in fines (often with interest) and penalties. 

The most effective solution is to engage Canadian compliance experts via a back office service provider. Access to compliance expertise will keep you abreast of and compliant with evolving Canadian business legislation.

Get Help with Administration

When your admin suffers, your staffing agency’s productivity suffers. How much time you have to source worthy candidates and compete with the big staffing firms’ volume of placements is directly affected by how much administration is diverting your attention from those core tasks. 

To optimize your productivity, you need to automate and outsource your most time-consuming tasks. Automating repetitive tasks like data entry, pre-screening resumes, and creating job postings can save your staffing agency 6+ hours per week. Outsourcing admin for payroll and compliance will save you many headaches as well.

Get Payroll Financing

The last step tip is to secure payroll financing early. Your staffing agency needs robust options to keep your pay scheduling consistent and to protect your investment against clients who may not pay. Especially since you’re a smaller operation than most staffing agencies, you’ll want to ensure that you can always pay your workers on time without breaking your business’s bank.

Back office service providers that are dedicated to the staffing industry offer payroll insurance that will kick in whenever your clients’ pay schedules don’t match up with yours. Such providers can also provide custom invoicing and credit checks for prospective clients, options that lines of credit and expensive factoring firms can’t offer you.

With your compliance, admin, and payroll taken care of, you’re all set to start a successful staffing agency.

Things You Need to Know When Starting a Temp Staffing Agency

Topics: Staffing Agency

How to Run a Successful Staffing Agency When You’re on a Budget

Posted by Ray Gonder

|

May 9, 2018 9:00:00 AM

How_to_Run_a_Successful_Staffing_Agency_When_Youre_on_a_BudgetLearning how to run a successful staffing agency means optimizing your cash flow management. It’s also about consistently providing the best talent for your niche market, but you can’t land the best talent if you struggle with payroll. To ensure that you can account for your considerable overhead and have enough cash flow to manage a weekly or bi-weekly payroll schedule, you need to secure your budget.

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

If you are still in the early stages of getting your staffing agency off the ground or you’re experiencing a slow season, this is the article for you. We’ve gathered a few of the most significant practices for how to run a successful staffing agency on a budget. Check them out below and get on top of your upside-down cash flow.


Close the Payroll Schedule Gap

A staffing agency, especially when specializing in temp and contract staffing, is a low-margin, high-volume enterprise. You have little room for error when it comes to securing your receivables from clients. You must be able to account for the gap between when clients are able to pay you and when you need to pay your workers.

For instance, let’s say you have a common bi-weekly payroll but your client’s pay schedule is net 60. That situation leaves you with months-long gaps in between receivables, which means you have to find other means to pay your workers on time. You’ll find your overhead funding will start eroding before long, especially if any of your clients default on their payments.

The solution to this is to outsource your accounting and payroll to a back office service provider dedicated to the staffing industry. Such providers understand the demands of running agencies on a tight budget and can offer you vital options like receivables insurance and credit checks on prospective clients.


Stay Current with Your Compliance Administration

Next to managing cash flow, keeping up to date with your compliance responsibilities is crucial for running a successful agency. Canadian employment standards are constantly evolving, changing many variables like wages, vacation pay, overtime, and personal leaves that could affect your profit margins.

Staying on top of compliance also means ensuring that the proper tax deductions and remittances are made to the government. Tax errors mean steep fines and penalties from the CRA, including imprisonment in extreme circumstances. Your agency’s compliance administration affects not just your budget, but your brand reputation, which is vital to your agency’s growth.

The most proficient back office solutions providers will be experts in Canadian compliance and will be able to help you review and update your processes as well as stay on top of ever-changing legislation.


Custom Pay Scheduling and Invoicing

Your pay schedule must be flexible and able to account for your growing roster of temp workers and contractors. You also need to keep on top of invoicing to ensure you’re getting paid on time.

The more time you spend on perfecting your payroll administration and book keeping, the less time you have to devote to your core business.

That’s why you should work with a back office provider that can streamline your administration with custom pay schedules, payroll processing, and invoicing. The truth about how to run a successful staffing agency on a budget is optimizing your back office. Once you can do that, competing with the big staffing firms will be a breeze.


Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Staffing Agency

How Successful Staffing Agencies Overcome These 3 Common Challenges

Posted by Corinne Camara

|

May 7, 2018 9:00:00 AM

How_Successful_Staffing_Agencies_Overcome_These_3_ChallengesIt’s an exciting time to run a staffing agency. Canada’s competitive gig economy continues to expand as more and more workers, both new grads and established professionals, seek flexible work. Many companies in various industries are finding that the demands of today’s digital global market are better met via temp and contract workers. No matter your niche, you can stake a claim in the staffing industry.

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

You won’t be getting far, however, if you can’t overcome three common challenges all staffing agencies are met with. Those challenges are high-volume payroll, non-compliance issues, and cumbersome administration. These challenges can drown a staffing agency if not dealt with early on, but there are successful staffing agencies that have overcome them.

Read on to find out how to benefit from these agencies’ clever solutions.


1. Payroll Troubles

To grow a successful staffing agency, you must solve the conundrum of balancing your limited cash flow with payroll for potentially hundreds of temp and contract workers, while dealing with mismatched client payment schedules. If your staffing agency cannot harmonize its cash flow situation or protect itself against potentially long periods between received payments, your progress will take a swift downturn.

While it can be tempting to invest in a short-term solution like a line of credit or bank loan, these options only leave you with more payment obligations and inflexible financing. Successful staffing agencies have overcome this challenge by getting payroll financing from a dedicated back office services provider. Payroll liabilities must be prevented if you want to retain the best talent and effectively manage client relationships.


2. Compliance

Successful staffing agencies also know the importance of staying abreast of updates to Canada’s business legislation. It’s never been more apparent how quickly Canada’s legislation can evolve.

Your staffing agency could face stiff monetary and legal penalties if you fail to uphold standards for your workers’ health and safety, employment standards, and more.

To overcome this challenge, established agencies have partnered with compliance experts that act as an extension of their teams. These experts update them the moment there’s a change to employment standards, allowing their firms to avoid issues with non-compliance.


3. Time-Consuming Administration

Your back-office administration is at best cumbersome without a robust solution that can deal with a high volume of paperwork and data associated with all your workers and clients. This data will exponentially increase as your agency grows, and if you’re not careful, your core business will suffer from major productivity slowdowns.

That’s why successful agencies have found automating their back-office processes to be ideal for overcoming this last challenge. When you have access to software to automate the most time-consuming of your back-office tasks, like applicant tracking, client relationship management, and compliant financial reporting, your recruiters aren’t hampered by double-duty anymore.

Digital transformation is vital for your agency. All-in-one software will improve and streamline your business practices for greater efficiency and cost effectiveness.

Successful agencies have all overcome these challenges that could have prevented them from competing with the big staffing firms in Canada. Follow their lead and watch as your staffing agency grows in leaps and bounds.


Things You Need to Know When Starting a Temp Staffing Agency

Topics: Staffing Agency

How Important Is Payroll Financing in the Contract Staffing Industry?

Posted by Anna Mastrandrea

|

May 4, 2018 9:00:00 AM

How_Important_Is_Payroll_Financing_in_the_Contract_Staffing_IndustryEntering the contract staffing industry can be a lucrative venture, so long as you have the infrastructure to sustain your business. With an ever-increasing number of Canadian professionals looking to achieve more flexible work in the gig economy, a competitive firm has its pick of a high volume of skilled contractors to offer. Yet, with a high volume of contractors comes a greater demand for biweekly and sometimes even weekly payroll.

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

You’re probably already well aware that clients’ pay schedules won’t always line up with yours perfectly. In fact, in most instances, your clients will have pay schedules that run from 45 to 90 days. While you could wait to pay your contractors until you receive payments from your clients, such a practice will prevent you from landing and retaining the best contractors.

So, how important is payroll financing in the contract staffing industry? The answer is that it’s imperative. Read on if you want to know exactly why you should secure financing that can handle the rigours of Canadian contracting.


Traditional Solutions Are Inflexible

While you might think you have the options of opening a line of credit with your local bank or engaging a factoring firm, these solutions are costly. These solutions actually put your staffing firm at more risk because neither of them can account for the fast-paced growth of the contract staffing industry.

Lines of credit, for instance, can solve the problem of steady cash flow initially. But the amount you’re cleared for by the bank is limited and won’t be easy to negotiate if your firm sees sudden growth. Lines of credit also don’t afford you much room to work with if your firm experiences a slow productivity season. Although interest rate might be lower than your standard credit card, the costs of a line of credit will compound over time.

Factoring firms, which can advance most of your invoice amounts and focus on your clients’ creditworthiness instead of your business’, only sound like a more stable option than lines of credit. In truth, factoring firms often charge anywhere as high as 6 percent of your invoice amounts and require you to share in your receivables risk. These service fees, coupled with no insurance should your clients prove untrustworthy, don’t meet the needs of your contract staffing agency.


Payroll Financing Means Stable Pay Scheduling

When you have access to payroll financing that’s designed for a staffing firm, you have the means to pay your contractors on a consistent schedule. Back office service providers like The Staffing Edge have years of experience in financing solutions for the Canadian contracting industry.

You’ll receive payroll insurance that’s flexible to your firm’s needs and the ability to customize your pay schedule. You’ll always have the money you need to pay your contractors, with low interest fees. This offers greater stability.


Credit Checks Prevent Untrustworthy Partnerships

Lastly, payroll financing is able to account for potential untrustworthy clients who might default or pay late often. Providers can also offer pre-emptive credit checks on prospective clients. Whether it’s due to fluctuations in the market, productivity slowdowns, or just plain bad luck, there are going to be times where clients might be worse off than they project to your firm. You need an option like credit checks to give you vital insights into their credit history.

With financing obstacles out of the way, your firm can unlock a lucrative revenue stream with contract staffing. That’s why securing your payroll financing is of paramount importance.


Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Payroll

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