The Staffing Edge Blog

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The Importance of a Great Candidate Experience

Posted by Chelsea Henry

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Jun 4, 2018 9:00:00 AM

The-Importance-of-a-Great-Candidate-Experience-compressorYour staffing agency’s overall success can be impacted by the effectiveness of your candidate experience. When you take a look at some of the latest statistics about how a poor candidate experience affects your business progress, everything is put in perspective. A particularly significant statistic, for instance, is that 58 percent of candidates would not apply to a hiring organization again in the future if they’ve had a prior negative experience with them. 

Download a Staffing CEO's Guide to Online Marketing

Since a staffing agency’s candidates are its lifeblood, you cannot afford to make a bad first impression with them. Despite the fact that sourcing candidates is the primary responsibility of your recruiters, it takes your whole team’s efforts to ensure every part of the candidate experience is a great one. 

If you want to know more about why building a great candidate experience is important, keep reading.

The Candidate Experience Is Integral to Your Brand

How you treat your candidates throughout the hiring process determines how well those candidates perceive your staffing agency. 

One recent survey stated that out of the 826 candidates asked, 72 percent of them who found their candidate experience lacking shared their experience online or with someone directly. These days, there are many sites like LinkedIn, Glassdoor, and PayScale where candidates can go to rate your staffing agency. 

Your agency’s brand is key to your hiring strategy because most candidates (and clients) are attracted to organizations that have values that align with their own. So, in addition to implementing an effective online marketing strategy, you should seek to optimize your candidate experience as well.

Areas for Improvement

Chief among candidates’ concerns during the recruitment process are the length of the hiring process and communication. That 72 percent of dissatisfied candidates cited above? One of the main reasons for their dissatisfaction stemmed from spending hours on the application process, only to get lost in the shuffle of hundreds of applications submitted. The other driving factor for their negative responses to the candidate experience was never receiving any notice regarding whether their applications were reviewed. 

Your staffing agency must review how well it’s managing its applicant data. Agencies these days are often dealing with an exponential amount of data on candidates, current and long-time clients, compliance, payroll, etc. If you find that your recruiters are spending less time on their core responsibilities because of double-duty to wrangle paperwork, something needs to change and fast. 

In other words, when you can save more time per week on admin tasks, your agency’s front-end staff will have a much better chance to engage with promising candidates in an efficient and authentic way.

Achieving a Rewarding Experience

When you take the time to streamline and improve the overall quality of your candidate experience, you’ll notice a significant increase in candidate engagement with your brand. According to some curated statistics by Monster, 62 percent of candidates would apply to the organization again and increase their relationship with the organization’s products and networks if they had a great candidate experience. As well, 78 percent of those happy candidates would refer others to the organization.

Clearly, there’s much to be gained by ensuring your candidate experience is exceptional. Having niche market expertise that’s second to none and a trustworthy client base isn’t worth a whole lot to your staffing agency if you cannot source enough candidates with your current candidate experience. Your business only continues to grow if you can improve your brand and generate an engaged and satisfied talent pipeline.

So, take the time to ensure you have a great candidate experience.

Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Staffing Agency

How Your Staffing Agency Can Win More Business with Automation

Posted by Karen McMullen

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Jun 1, 2018 9:00:00 AM

How-Your-Staffing-Agency-Can-Win-More-Business-with-Automation-compressorThis might be your staffing agency’s year to grow by leaps and bounds. Canada’s gig economy is thriving and, if your hiring strategies and marketing are on point, you might just find yourself with a sustainable talent pipeline. All this is only possible, of course, if your staffing agency has a proficient infrastructure for its daily operations. 

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

The current conundrum of growing a staffing agency lies partially in the ongoing reluctance of owners to invest in automation to streamline their daily operations, despite fierce competition for talent. One recent LinkedIn report even stated that 58 percent of recruiter consider competition for talent their greatest challenge. 

There are many misconceptions about automation in the staffing industry, chief among them being the notion that automation will replace recruiters or decrease the emotional intelligence of the candidate experience. We’re here to let you know that these concerns couldn’t be further from the truth.

Hone Your Candidate Experience

Automation won’t replace recruiters. In fact, you can automate repetitive tasks that often distract your recruiters with busywork, so they can become more present in their roles. Automating tasks like data entry, pre-screening resumes and sending initial notifications of received applications allows your recruiters to dedicate more hours per week towards honing your candidate experience. 

Candidates appreciate when the recruitment process doesn’t feel robotic, and using automation won’t make it seem that way. With automation, your recruiters are free to focus on core tasks, like forming strong relationships with candidates instead of wasting time on data entry.

Gain Vital Data to Improve Your Brand

Data is cited as one of the top four trends changing recruiting tactics in 2018. Staffing agencies amass huge volumes of data in no time at all, and with automation, you have the ability to accelerate the rate at which you can analyze this data to inform your decisions.  

Data analysis helps you do a whole host of things to improve your candidate process including evaluating skills and skills gaps, understanding client wants, building better offers based on these wants, assessing supply and demand for clients, and even predicting candidate success rates. The more you can improve your decision-making when it comes to candidate placements, the better your staffing agency will be capable of retaining talent and keeping clients satisfied with your services. 

Data is a driver for growth in the staffing industry if you can harness it with proficiency. Automation affords you this proficiency and transforms your agency into one that’s capable of competing with the big firms on a national level.

Sustain Professional Standards

There’s one more key aspect of automation: consistency. When you automate your agency’s administration, especially with regards to payroll and financial reporting, your business becomes more compliant. There is software designed to automate payroll delivery, deductions, and tax remittances according to the latest Canadian business legislation.

Your candidates will notice you always pay on time and according to current wage standards. Your clients will appreciate your professionalism when they notice that you always invoice on time and inquire regularly about account statuses as well. When your agency upholds its promises regarding its excellent customer service, as well as compliance, the word spreads quickly among your candidate and client networks.

To put it simply, automation is a tool that optimizes your agency for success in the industry. Moving forward, the digital transformation process will become more integral and normalized within the industry because you win more business when your core tasks are unencumbered by administrative tasks.

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

Topics: Staffing Agency

What Is Operational Sustainability & Why Should Your Staffing Firm Care?

Posted by Mai Dowdie

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May 30, 2018 9:00:00 AM

What_Is_Operational_Sustainability_and_Why_Should_You_Staffing_Firm_CareYou’ve invested a lot in your staffing firm, and for good reason. Canada’s current gig economy is thriving and is only expected to grow in the coming years. But while business may be fruitful for your firm now, are you sure that you can continue to run at the same pace in the future?

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

Staffing firm owners are often caught up in the present moment of growing their businesses, focusing on landing great talent and finding more potential clients. This “strike while the iron’s hot” mentality is necessary in a competitive industry, but only if owners are conscious of how well their firms’ operational sustainability is doing.

What is operational sustainability? The simplest definition is that it’s an evaluation of your day-to-day operations and whether your current infrastructure puts your future business resources at risk. If you want to know why your staffing firm should care about future resources in addition to its current resources, keep reading.


Is Your Payroll Processing Sustainable?

Operational sustainability is often described as a three-part evaluation of profits, people, and planet/environment. In the case of staffing firms, this evaluation considers how your current infrastructure impacts your bottom line, your talent and clients, and your back office administration.

Regarding your bottom line, you should evaluate how much you’re spending on payroll processing. As your firm grows, your payroll processing solution should be able to handle a high volume of workers. No matter whether your pay schedule matches that of your clients’ or not, you need to ensure that you aren’t stretching your resources when you pay your workers.

Your payroll processing isn’t sustainable when you’re bleeding resources and losing talent because of upside-down cashflow without tools to mitigate financial risks (like defaulting clients). If you find that you cannot keep to a consistent pay schedule, and you must rely on costly payroll solutions like an inflexible line of credit or factoring, that’s a sign your operational sustainability is suffering.


Do You Have a Talent Pipeline?

Your firm will only continue to see great ROI if it’s proficient at managing its greatest resource: its talent. Your ability to attract clients, both now and in the future, is determined by how well and fast you’re able to fulfill work orders. As such, you need to evaluate whether your current hiring process is reliant on on-demand talent found in the moment or if you’re focused on growing a roster of talent for future orders. If you rely on the former hiring process, chances are your operational sustainability needs improvement.

When you rely too heavily on hiring only when the need arises, you risk your future business resources if there’s an unexpected change. As we all know in business, change is inevitable over time. Your firm stands a much greater chance of sustaining its business if you have a talent pipeline that you can draw upon whenever a client needs staffing gaps filled.

Talent pipelining is also important for sustaining your client base. Long-standing clients will leave your firm if they find you neglectful of their work orders. When you sustain your talent, you increase the chance of repeat business in addition to attracting new clients.


Is Your Back Office Administration Wasteful?

Your firm’s overhead is greatly affected not just by how well you’re doing with your placements but how efficient your back office administration is as well. Staffing firms are notorious for generating mountains of paperwork in no time at all. The more talent and clients you deal with, the more time and resources are spent on wrangling all the T4s, paystubs, invoices, health and safety contracts, etc.

Sustaining your back office admin means finding a way to digitize and automate all the important data on your talent and clients. If you want your agency to compete with the big firms someday, your back office administration needs streamlining so that your front office isn’t wasting time (and supplies) doing double duty.

Operational sustainability is something you should care about because it concerns your business’ future success. Use the above criteria to optimize your firm’s infrastructure.


Things You Need to Know When Starting a Temp Staffing Agency

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 Improve Your Staffing Agency’s Employer Brand

Posted by Ray Gonder

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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

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

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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

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