The Staffing Edge Blog

Focus on your core business. We’ll take care of the rest.

How a MOL Blitz Can Affect Your Staffing Firm

Posted by Laura D’Andrea

|

Dec 1, 2017 9:00:00 AM

How a MOL Blitz Can Affect Your Staffing Firm--.jpg

The Ministry of Labour conducts workplace inspection blitzes throughout the year as part of the “Safe at Work Ontario” compliance strategy, which according to Workplace Safety & Prevention Services is, “designed to raise awareness and increase compliance with health and safety legislation.” What do these MOL blitzes mean for your staffing firm and how can you be prepared for when they visit you?

Download

 

What Is a Ministry of Labour Blitz?

MOL blitzes focus on sector-specific hazards and concern a wide range of programs. From basic employment standards to health and safety requirements, MOL blitzes seek to protect workers’ rights under both the Occupational Health and Safety Act and the Employment Standards Act, and enhance employers' awareness of their responsibilities. The focus of MOL blitzes and initiatives are announced ahead of time, but individual workplaces are not identified in advance nor are they given notice.

Health and safety in the workplace is addressed by MOL blitzes and initiatives that aim to raise awareness of workplace hazards. This includes issues such as falls, slips, and trips and, notably, new and young workers. If your client has recently staffed summer students or season workers, they may be subject to an MOL blitz where inspectors will be looking for adequate training, orientation and supervision, and safety measures and procedures within the workplace.

MOL blitzes and initiatives also check that employers across the province are upholding employment standards. Inspections may occur regarding issues such as: minimum wage rates, work hours, overtime, holiday pay, and statutory holidays. As the number of people working rises, it is important to fairly and accurately compensate staff within the workplace for the work they do. As a staffing firm, it is paramount to make sure that the quality of employment of your clients and staff are protected.

What Does This Mean?

MOL blitzes target workplace hazards that can lead to high-cost injury claims that have severe ramifications for both the workplace and your staffing firm. Any claims that result from injuries that cause fatalities or long-term and/or chronic disabilities are passed along to employers in the form of higher WSIB assessments, insurance premiums, lost time, and lower productivity. Moreover, as a staffing firm, placing staff into a potentially unsafe work environment reflects badly on your clients and on your business.

What Can You Do?

As a successful staffing firm, you need to ensure that client’s workplaces are not only safe and properly documented, but that the temporary workers you manage know their rights, have the proper qualifications, and have signed the appropriate documentation. Workers must be aware of the duties of their position, so they don’t take on more than they are qualified for, and know that they have the right to refuse unsafe work.

Ignorance is not an excuse and being proactive and seeking help from the professionals is the best way to be ready for a MOL blitz. Identify the potential hazards in your client’s workplace yourself and establish a plan for how to approach any injury or illness. Having a well-documented health and safety program visibly in place is essential to safeguarding both your client and your staffing firm. Find out what exactly needs to be done to ensure compliance before the inspector arrives and considering performing a spontaneous audit on the workplace yourself.

If the workplace is targeted for a MOL blitz, work with the inspector and comply in correcting any deficiencies identified by the MOL inspector. Workplaces must allow the MOL inspector into the workplace and during the blitz campaign, inspectors have been instructed to take a zero-tolerance approach, meaning that if a workplace is found to be non-compliant, the MOL will prosecute in some way. This may extend to both your client’s workplace and your staffing business, too.

Make sure your staffing firm is prepared for the 2017-2018 Ministry of Labour blitzes.

A CEO’s Guide: Online Marketing for Staffing Firms

Topics: Staffing Agency

Staffing Agencies: Get Familiar with the 2017 MOL Blitz Schedule

Posted by Stacey Duggan

|

Nov 29, 2017 9:00:00 AM

Staffing Agencies Get Familiar with the 2017 MOL Blitz Schedule--.jpg

The health and safety of employees should be the top priority for any Canadian employer. In 2015, 852 Canadians died while on the job due to workplace accidents. Workplace injuries are detrimental to the employees and they impact the company as a whole. In 2015, businesses lost over 232,629 hours of labour, due to injured employees requiring time off. Unsafe working conditions therefore are harmful to both the employee and their employer.

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

To help ensure the safety of workers, the Canadian Ministry of Labour (MOL) has arranged for a variety of blitz inspections to occur between April 1, 2017, and March 31, 2018. These blitzes will take into account health and safety compliance in addition to employment standards. It’s important for companies and staffing agencies alike to get familiar with the 2017 blitz schedule and prepare for the possibility of inspection.

Who’s Being Inspected?    

To keep the element of surprise on their side, the MOL has not released which companies will be inspected. This will ensure businesses are not forging their working conditions for inspection, but instead stay up-to-regulations at all times.

Instead, the MOL has released a schedule of the various industries that will be under scrutiny, so that companies within those industries will have a general idea of when an inspection could occur.

The 2017-2018 blitzes will focus on companies and industries that are more likely to experience workplace injuries. This can include companies that:

  • have a history of previous violations;
  • employ new, young, and temporary foreign workers, and those in non-standard or precarious work;
  • are quickly expanding, hiring a growing number of employees.

What Is the MOL Looking For?

The objective of these inspections is to ultimately raise awareness for health and safety compliance among high-risk industries in Canada. In order to do so, the MOL is looking to ensure businesses are compliant with the Occupational Health and Safety Act (OHSA) and the Employment Standards Act (ESA).

The MOL wants to see that companies have taken direct initiative in aiding to prevent workplace injuries. They are looking for companies that have successfully implemented employee training programs and detailed policies and procedures relating to health and safety.

Additionally, the MOL is also looking to see improvements from companies that have had previous blitz discrepancies. They are looking to observe the changed conditions in the industry records of companies that have had previous issues, and ensure all hazards relating to the blitz are no longer present.

Aside from health and safety, the blitzes are also looking to ensure workplace employment standards compliance including:

  1. minimum wage;
  2. working hours;
  3. overtime compensation;
  4. holidays; and
  5. paid vacations.

How Can Companies Prepare?

These blitzes are not meant as a malicious attempt to destroy the reputation of any companies, but instead ensure health, safety, and wellbeing of all Canadian workers. They are not designed to punish compliant companies, which means that there are steps companies can take in order to pass their inspections with flying colours.

To pass their inspections, companies should:

  1. review the OHSA and ESA to ensure they are complying with all relevant rules and regulations;
  2. put in place a workplace safety program (if they haven’t already); and
  3. ensure all proper documentation is prepared in an orderly fashion.

Staffing agencies should be aware of the 2017-2018 MOL blitz schedule in order to stay on top of changes in health and safety regulations. This will allow for staffing agencies to properly advise their clients of any and all regulations they should be aware of, or changes that need to be made. Staffing agencies that require further information are encouraged to seek the services of a back office solutions provider who can provide them with all the necessary information they require to make informed business and client decisions in light of these inspections.

 Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Staffing Agency

How to Hire Staffing Leaders in a Competitive Market

Posted by Ray Gonder

|

Nov 24, 2017 9:00:00 AM

HowtoHireStaffingLeadersinaCompetitiveMarket.jpg

Your up-and-coming staffing firm needs to hire recruiters who capable of handling today’s competitive market. Those we can call staffing leaders are those who, in addition to being experts in recruitment, are innovators and big-picture thinkers.

Download

It can be a challenge to find and hire staffing leaders, especially as the owner of a small agency. Other, more established firms are on the lookout for such recruiters too. To hire the staffing leaders you need to succeed before your competitors do, use these tips.

Optimize Your Online Marketing

When it comes to hiring for leadership positions, you must be vigilant about your employer branding. How you present your firm’s knowledge and experience, as well as how your peers and clients perceive you online, goes a long way to attracting top candidates.

Make sure you have a good handle on your online marketing; it’s the best way to let top candidates know you’re a competitive firm. You should have profiles on social media platforms like LinkedIn, Twitter, Facebook, and Google+. Don’t discount what a website with proficient search engine optimization (SEO), mobile-responsive design, and a blog will do for your online marketing as well.

Candidates should be able to research your firm’s employer brand and learn about how passionate you are about your job market niche before they interview with you.

Focus on a Behavioural Interview Strategy

When you’re hiring for leadership positions in your firm, it’s important that you don’t get tunnel vision regarding candidates’ skills. Your firm needs leaders who are culturally fit for its work environment and recruitment team, which means you need to pay attention to both hard skills and soft skills.

Soft skills are trickier to gauge than hard skills because they are skills that must be proven in context. Candidates can say they’re “responsible” or “good at delegating tasks,” but you can’t always connect skills like these back to a degree. Behavioural interview tactics are a must in these instances. With these tactics, you can ask questions that help you determine a candidate’s values, adaptability, communication skills, and more.

There are popular behavioural questions you can ask to reveal a candidate’s soft skills. Be sure to ask situational questions, such as this one for example: “Tell me about a plan that went awry at work. What was your role and how did you influence the outcome?” Questions like these will prompt leadership-worthy candidates to demonstrate their prowess in communication, critical thinking, and problem solving.

Invest in Competitive Back Office Solutions

Staffing leaders want to work for the best firms. They want to spend their time building relationships with clients and candidates. They don’t want to spend all their time on data entry and menial tasks.  While it’s also a matter of maximizing your firm’s budget, investing in back office solutions also improves your ability to save time and improve efficiency in the front-end of your business. As a result, staffing leaders will be attracted to your company because you’ll offer them the opportunity to focus on client and candidate relationships rather than paperwork.

Staffing leaders want to work with firms that run a tight ship and are tackling daily operations in the same innovative way they would. Seeing that you’ve invested in back office solutions will leave a lasting impression.


Things You Need to Know When Starting a Temp Staffing Agency

Topics: Staffing Agency

7 Traits You Need to Succeed in the Staffing Industry

Posted by Laura D’Andrea

|

Nov 20, 2017 9:00:00 AM

7 Traits You Need to Succeed in the Staffing Industry.jpgWhether you’re thinking about becoming a staffing industry professional or you already own a new staffing firm, it’s always a good idea to periodically run an inventory of your key traits.

Download

As we’re sure you’re aware, it takes a lot to dedicate yourself to a career in the staffing industry. But what specific traits are most important to be successful? Check them out below.

1. Niche Expertise

This trait is critical to success in the staffing industry because it’s about focusing on a corner of the job market you know you can excel at. When you adopt a jack-of-all-trades mentality towards recruitment, you’re bound to spread your skills and resources too thin.

There are many advantages to choosing a niche to focus on as a recruiter or the owner of a staffing firm. Chief among them is being able to limit your competitors and hone your expertise to a fine point in your field. Having a niche offers much more value to your clients because you’ll know your corner of the job market inside and out.

2. Highly Organized

A keen recruiter or staffing firm owner possesses meticulous organizational skills. As hiring volume continues to increase in the staffing industry, the success of a firm (especially a new one) is determined by its efficiency. If you want to land the best candidates, you must be quick or another staffing firm will snatch them up first!

Efficiency must be optimized if you don’t want to drown in paperwork or lose candidates to the competition. That’s why staffing firms are using proprietary software like Stafftrak to automate their most time-consuming tasks, from applicant tracking and data entry to client relationship management and financial reporting. The less drudgery recruiters must deal with, the more time they have to focus on sourcing talent.

3. Excellent Communication

According to a study from 2016, 77 percent of job seekers still prefer human interaction during the hiring process.

A successful staffing professional should excel at communicating with people. Clients and candidates should view you as a knowledgeable and confident guide. Being able to connect on a personal level with those who engage your services makes it easier for you to zero in on their wants and needs.

4. Effective Time Management

This trait is tied in with being highly organized but is important enough that it should be highlighted on its own. The staffing industry is very much a “strike while the iron’s hot” kind of industry. Staffing professionals who are prone to procrastination will miss out on many candidates.

5. Vigilant about Compliance

Canadian business legislation is constantly changing, which is why a staffing professional should be committed to compliance. Updates to employment standards are constantly occurring; therefore, it’s imperative to keep up with changing legislature and make necessary changes to your staffing firm.

Compliance is considered one of the top 10 things you need to know when starting a temp staffing agency. Make sure you’re vigilant.

6. Know Your Weaknesses

As a successful staffing professional, you should know your weaknesses as well as your strengths. Being aware of your shortcomings ensures you always work to up your game and improve the quality of your work.

By understanding your weaknesses, you can ensure they don’t affect the success of your agency.

7. Committed to Customer Service

The ultimate goal of a staffing firm is customer satisfaction. You should be committed to constantly improving the client and candidate experience. If you make customer service one of the central goals of your firm, you’re bound to succeed.


Things You Need to Know When Starting a Temp Staffing Agency

Topics: Staffing Agency

5 Costs That Ruin Employment Agency Profit Margins

Posted by Anna Mastrandrea

|

Nov 13, 2017 9:00:00 AM

5CostsThatRuinEmploymentAgencyProfitMargins.jpg

Running an employment agency, even in the age of a soaring gig economy and the ongoing skilled worker shortage, is tough. While you might have a niche that’s in demand and potentially lucrative, your employment agency’s success is dependent on whether you can keep your books balanced.

Download

You could have the best talent on your roster, but you could still find that your profit margins are narrow. The reason for this is complex, but a lot of it comes down to improper back office administration and untrustworthy clients.

Curious about which costs can wreck your employment agency profit margins? Check out five of the worst issues below.

1. Disorganization

This might not seem like the worst offender on the surface, but disorganization (particularly regarding your accounting paperwork) can shrink your employment agency profit margins in several ways.

Let’s say your agency is new. Chances are you won’t be focusing on accounting as much because you’re preoccupied with sourcing talent and drumming up clients who want that talent. But once you start regularly placing candidates, you’ll most likely have misplaced an invoice or two, not to mention time cards. An inefficient financial reporting system can quickly hurt your profits due to late payments.

2. Non-Paying Clients

Non-paying clients coupled with a disorganized back office could spell disaster for your employment agency profit margins. Some clients are simply looking for free labour. Cash flow management for employment agencies is difficult. You must pay your temps on time, even if your clients haven’t paid you, which means non-paying clients can seriously set back your agency’s growth

Credit checking before you start a relationship with a client is vital to keeping your employment agency profit margins healthy.

3. Poorly Matched Pay Schedules

Unfortunately, there are going to be instances when your profit margins are down due to late payments from clients. Every business has its own individual pay schedule, and not all of them are going to be perfectly in sync with your agency’s schedule.

A typical payroll schedule for an employment agency is weekly or bi-weekly, but what if your client only pays every 60 or 90 days? That means you’ll be using your own funds to pay employees until your client finally pays you.

4. Compliance Woes

Canada has many employment laws and standards that staffing agency owners must meet. Keeping track of ever-evolving legislature and ensuring your agency is always compliant is a difficult task. Employee misclassification is a real—and costly—risk in the industry. You also have to comply with minimum wage, overtime laws, holiday pay standards, and so much more.

Add to the above missed tax returns and remittances (which will be inevitable if your back office is very disorganized), and your profit margins will rapidly shrink.

5. No Payroll Financing

Just as you trust your clients to pay on time, your temps trust your agency to pay on time, which is why payroll financing is vital to the financial health of your staffing agency.

Keep these five costs in mind when launching your agency, and you should have no trouble keeping your profit margins up!


Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Staffing Agency

Why Your Staffing Agency Profit Margin Is Shrinking, and How to Fix It

Posted by Stacey Duggan

|

Nov 6, 2017 9:00:00 AM

Why Your Staffing Agency Profit Margin Is Shrinking, and How to Fix It.jpgSo, you have a relatively new staffing agency and you’ve also focused on a niche. You know all about the gig economy and how it will be changing the definition of work. You’re sourcing great talent. Everything seems to be going well…So, why then are you seeing your staffing agency profit margins shrink already?

Download

The truth of the matter is that staffing agency profit margins aren’t all that transparent. On the surface, you might think it’s mostly about covering your general overhead and having extra saved for emergency costs. But the most draining expenses for staffing agencies have a lot to do with customer service and compliance as well.

Want to know how to fix your shrinking profit margins? Continue reading for a clearer picture of why your margins are tightening and a way to regain some financial breathing room.

Is Your Customer Service Unique?

Can you say without a doubt you’re offering customized service to your customers and a great experience to your candidates? If you can’t, this is likely part of the reason why your staffing agency profit margins are shrinking.

Although you do need to stay competitive with your rate of placements, you can’t compromise on the quality of your customer service. You can’t rush your clients and candidates off the phone or ignore their emails when they have questions and concerns simply because you want to move on to the next placement. You must provide quality customer service.

Being speedy is good, but being empathetic to your candidates’ needs and your clients’ staffing challenges is even better.

Cookie-cutter customer service that’s solely focused on quantity rather than quality of placements will lead to customer dissatisfaction. And as your talent database shrinks, your clients will begin to leave.

Are You Behind on Canadian Compliance?

The Canadian business law landscape is constantly shifting and evolving. Your current perception might be that profit margins aren’t affected much by this fact, barring exceptional law updates and changes. But even yearly taxes and remittances can impact your staffing agency profit margins. 

You literally can’t afford to default on your Canada Revenue Agency (CRA) remittances. There are automatic monetary penalties for late or failed remittances that rapidly accumulate large costs. For example, the penalty for payments that are six or seven days late is 7 percent of the amount owed, and if you’re a repeat offender, the CRA will add another 20 percent to that amount. 

There are also more slippery compliance matters, like employee classification, that you need to stay on top of. The misclassification of employees as independent contractors can lead to prosecution, public disclosure of conviction, and monetary penalties to boot! 

None of these fines and penalties are particularly helpful for improving your profit margins (or business reputation).

You Need Canadian Admin Experts

To consistently improve your staffing agency’s performance levels regarding customer service and ensure there aren’t major oversights with administration, you’ll need to upgrade your infrastructure. More specifically, you’ll need to target your back office infrastructure. The efficiency of your admin determines your day-to-day success on the front end.

A back office solutions provider can take over back-end tasks and offer you software that allows you to improve client relationship management and applicant tracking. This will help you focus on customer service.

Compliance experts can also help you with correct financial reporting, so you won’t see profits bleed from missed remittances or oversights with Canadian business laws.

Your profit margins must stay strong if you want to eventually compete with the big staffing firms. The key to fixing shrinking profit margins is offering conscientious customer service that grows your network and keeping administration is watertight.

We hope you keep this blog’s discussion in mind when addressing your profit margin challenges.

Starting a Staffing Agency

Topics: Staffing Agency

7 Staffing Industry Innovations to Anticipate in 2018

Posted by Karen McMullen

|

Nov 3, 2017 9:00:00 AM

7 Staffing Industry Innovations to Anticipate in 2018--.jpgThe year 2017 was all about the potential of harnessing technology. We learned technology in staffing could amplify the efficiency of daily operations and improve sourcing accuracy. Employer brand was also a key trend in 2017.

Download a Staffing CEO's Guide to Online Marketing

It’s time to consider which staffing industry innovations will prevail in 2018. Some of our roundup below may be familiar to you, but these innovations are expected to trend well into the coming year and beyond. To remain a competitive staffing agency, you’ll need to anticipate these following 7 innovations.

1. Upgraded Applicant Tracking Systems (ATS)

There are several ways an applicant tracking system can sink a temp agency. Most of the reasons a poorly designed ATS could cause trouble are connected to lack of customization and integrated client relationship management tools. Not to mention a less effective ATS had trouble keeping all its data on applicants and clients straight.

In 2017 ATS are slated for a level up with the introduction of innovations like machine learning, which will enable an ATS to rediscover successful candidates in your swelling database.

2. The Rise of Mobile Recruiting

We predict 2018 will be the year many temp agencies realize the power of sourcing candidates via mobile platforms. The reason for this is twofold: There’s rapid growth in the number of millennial new grads on the market, and smartphones and tablets have become the most prominent platforms for internet browsing.

The number of smartphone users alone is expected to reach 2.5 billion in 2018! There’s a good chance you could be missing out on diverse talent if your agency’s website and recruitment software aren’t mobile responsive.

3. Online Marketing

This innovation is one that’s evolving all the time, what with digital transformation continuing to make technology ubiquitous in business operations. To amplify your temp agency’s success rate, you’ll have to ensure your online marketing strategy hits all the sweet spots: search engine optimization (SEO), blogging, and social media. Don’t be afraid to include short but catchy videos as well.

4. Data-Driven Recruitment

While a human touch is still important to the staffing industry, data will become key to how you source and select candidates in 2018. We already use keywords and algorithms. Moving forward, we will see the rise of natural language processing (NLP), which enables automated candidate screening to become more diverse and unbiased.

NLP will also be important for writing job descriptions. Often, candidates who are diverse in more ways than one (gender, ethnicity, thought) are scared off by job descriptions that read exclusionary.

5. Hiring for Thought Diversity

As just mentioned above, hiring candidates who think diversely is fast becoming a game-changing innovation.

When you hire candidates who improve a company’s thought diversity, you’re empowering them with candidates who can improve their chances of innovating the “next big thing” in their field. Not to mention, this helps bring a fresh perspective on how to tackle daily operations.

6. Micro-Targeting

To spur your temp agency’s growth in 2018, focus not just on a specific field, but specific locations and skills for candidate sourcing. Micro-targeting may seem counterintuitive at the surface level, but remember that your job is to alleviate a very specific shortage of skilled talent.

7. Outsourcing Compliance

This last innovation speaks volumes about how complex Canadian business legislation has become. The year 2018 will see many temp agencies choosing to outsource their compliance to experts who can keep them up to date with employment standards.

With Ontario’s new employment standards affecting minimum wages, worker classification, and more, agencies will want to make sure their due diligence is always met.

These seven innovations paint a picture of a technologically advanced staffing industry in 2018.

Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Staffing Agency

4 Reasons Your Staffing Agency Is Losing Clients

Posted by Shannon Dowdall

|

Nov 1, 2017 9:00:00 AM

4 Reasons Your Staffing Agency Is Losing Clients--.jpgThe competition rages on among staffing agencies of all sizes. Since the skills shortage continues to boost the rise of Canada’s gig economy, the coming new year doesn’t look as if there will be any let up on the race to land top talent. As a staffing agency owner, keeping up with the breakneck pace of the recruiting industry is challenging enough without having to worry about why your growth is stagnating.

Download a Staffing CEO's Guide to Online Marketing

If you find you’ve been losing more clients than you’ve been signing on in recent months, then it’s time to assess your staffing agency’s recruitment process. Below, you’ll find four reasons that might just be the problem you need to fix.

1. You’re Taking Too Long to Place Candidates

In the staffing industry, time is perhaps your greatest resource and it shouldn’t be squandered on an insufficient applicant tracking system. Daily tasks like data entry and pre-screening shouldn’t eat up hours of your recruiters’ schedules.

The longer you take to find the right candidates for your clients, the more impatient they’ll become and the more likely they’ll engage a quicker and more experienced staffing agency the next time around. If you’re taking a long time to place candidates during a busy season, like summer, many clients who need temp workers to fill in for employees on vacation leave or for a special project will leave at once.

2. You Can’t Seem to Locate Candidates with High Potential

A staffing agency can’t thrive if it lacks the ability to offer uniquely talented candidates, no matter its niche. If you have been focusing on quantity of candidates placed over quality, you’ll notice your rate of losing clients will increase. One of the main reasons successful staffing agencies can grow their businesses sustainably is that they make the effort to find a steady stream of skilled and diverse candidates.

If talented candidates aren’t attracted to your brand, chances are your social media activity is low and your career site isn’t mobile responsive in design. A large portion of the job market is now driven by millennials, which means you need to make sure your staffing agency’s site is accessible by the smartphone-savvy crowd!

3. Your Staffing Niche Isn’t Really a Niche

Instead of choosing a niche, some staffing agency owners decide to “specialize” in several different industries. This results in them spreading their staff and resources thin. It means they don’t have a point of differentiation. It means they don’t have expertise or deep knowledge in any one sector.

Your agency will only become specialized in providing specific talent when it doesn’t have its hands stuck in so many pies.

When your agency’s focus is too broad, you lose clients because you can’t guarantee them consistent talent nor can you offer valuable industry insights and knowledge. Without those vital things, your brand loyalty plummets.

4. You Can’t Keep Compliant

If your agency lacks proper administration, this can lead to you running into trouble with the government for taxes, employment standards, and more. Noncompliance isn’t attractive to clients.

Noncompliant agencies appear risky and untrustworthy to clients, which is why you might be losing them if you can’t keep up with Canadian labour laws.

Take stock of these four reasons why you might be losing clients as they speak to what you need to know about starting a successful agency!

A CEO’s Guide: Online Marketing for Staffing Firms

Topics: Staffing Agency

Top 5 Costs Eating into Staffing Agency Profit Margins

Posted by Anna Mastrandrea

|

Oct 30, 2017 9:00:00 AM

Top 5 Costs Eating into Staffing Agency Profit Margins--.jpgTemp staffing agencies may be on the rise but they can have a tough time keeping afloat financially.

Download

For a new staffing agency to become more competitive and achieve sustainable growth, it must ensure its overhead isn’t exceeding its profit margins. The key to determining what costs are eating into your staffing agency profit margins is zeroing in on what aspects of your agency are the most inefficient.

With the above in mind, here are our top five costs that are eating into your staffing agency profit margins.

1. Non-Compliance

We know keeping on top of paperwork duties might be a pain, but it’s paramount for your staffing agency profit margins. If your agency is found to be noncompliant with Canadian business legislation and employment standards, your finances will take a downturn. 

You could face penalties and fines that can run into the thousands. 

If you aren’t on top of your compliance, it’s a sure bet your staffing agency profit margins are shrinking. Canadian business legislation is constantly changing, and you need to keep up to avoid costly fines.

2. Taxes and Government Remittances

This second cost is part of your compliance responsibilities, but it’s a matter that also entails how efficient your financial reporting system is. When it comes to paying taxes and government remittances on time, you literally can’t afford to be late. Staffing agencies that miss their remittance deadlines must deal with automatic penalties from the Canada Revenue Agency (CRA), rush to make payment arrangements, and appeal in court to contest fines. 

Of course, all the issues just mentioned cost your staffing agency precious time that could’ve been spent focusing on sourcing talent and securing placements for clients. One way agencies avoid this problem is by implementing proprietary software that has a built-in financial reporting system.

3. Non-Paying Clients

One of the key things you should know about starting a temp staffing agency is that your reputation is dependent on your ability to enter into valuable client relationships. If you’re too focused on the number of placements you make, you run the risk of connecting with clients who refuse to pay your agency (on time or at all).

You need to run credit checks on clients before you enter into a partnership with them. And your screening process should be thorough. Otherwise, you risk your profit margins and your employer brand in one fell swoop!

4. Overtime and Holidays

You need to know what the laws are for overtime and statutory holidays in your agency’s province. Every Canadian province has varying rules and standards in both cases. If you don’t follow them, you could find yourself dealing with extra costs if your temps have worked overtime or holidays during their placements.

5. Payroll Financing

Even if your clients are trustworthy, their business payroll schedule might be divergent from yours. Your candidates must be paid on time, regardless, or you risk losing their talent and dealing with complaints and a bad reputation. You could end up paying a lot of interest on lines of credits or other financing options from a bank, making it difficult to profit. That’s why staffing agencies seek services like receivables insurance to keep their payroll consistent.

Stay on top of these five potential costs, and your staffing agency will be able to keep its profit margins strong!

Everything You Need to Know about Starting a Successful Staffing Firm

Topics: Staffing Agency

5 Trends That Could Revolutionize Staffing Agencies

Posted by Ray Gonder

|

Oct 27, 2017 9:00:00 AM

5 Trends That Could Revolutionize Staffing Agencies--.jpgAs a staffing agency owner, you probably think about how cutting-edge trends will impact your adaptability and competition. After all, to compete with the big staffing firms, new staffing agencies need to know the best ways to maximize their budgets and efficiency.

Download a Staffing CEO's Guide to Online Marketing

Certain innovative trends could redefine the recruitment process in the coming year. We’ve gathered five of these trends for you to consider.

1. AI Chatbots

In this era of online marketing, candidates want to have immediate and ongoing communication with employers.

Understandably, your firm might not have as much time or resources to keep in contact with all its candidates in such a fashion. But a lack of candidate engagement will negatively impact your employment brand. It’s been noted that 58 percent of candidates view an agency negatively if there’s no feedback after an application submission.

AI chatbots can revolutionize the initial candidate experience by providing a means of immediate communication. These chatbots are smart enough to measure the level of candidates’ interest in answering objective questions about their professional and educational experiences. Since AI chatbots are unbiased interviewers, they also open the door for more candidates of various diversities, which gives staffing agencies an edge.

2. Candidate Rediscovery Algorithms

Applicant tracking and client relationship management (CRM) software programs are vital to all staffing agencies. As AI chatbots as a trend have shown us, keeping communication active is a key way to elevate your staffing agency’s brand. When your new staffing agency hones its niche, you will find that your candidate database will grow exponentially, which is why candidate rediscovery algorithms are a trend that’s here to stay and evolve.

What candidate rediscovery algorithms allow staffing agencies to do is mine for veteran candidates in their databases who might have been lost in the wave of current candidates. Using algorithms improves your profit margins and saves you time placing skilled candidates with clients who need the talent ASAP.

3. Partnerships with Back Office Experts

Keeping the quality of your recruitment process high also has to do with how streamlined your back office admin is. Especially when you’re a small agency just starting out, you’re going to find out quickly how much the paperwork can weigh down your back end, making your front end drag in its day-to-day responsibilities.

Partnering with a back office provider could revolutionize your staffing agency by lifting the burden of admin off your front end. Moving forward, the staffing industry is focusing on how fast it can source and place candidates. Back office providers can offer decades of expertise in compliance, applicant tracking, and CRM.

4. Automated Data Entry

One of the most cumbersome aspects of admin is data entry, particularly data entry for financial reporting. Many staffing agency systems don’t possess an integrated financial reporting function, which is why an agency’s recruiters often end up having little time to properly engage with clients and candidates.

Automated data entry can collect timesheets, pull relevant pay structure information from orders, and use previous input for rules and standards for correct payroll calculations. The more an agency can automate menial tasks, the better it can focus on its core business.

5. Multipurpose Software

Applicant tracking, CRM, and compliant financial reporting form the backbone of every staffing agency, which is why all-in-one software is a significant trend. With such software, you can accomplish all admin tasks with relative ease and keep actively engaged with candidates and clients.

Being able to expertly balance the front and back ends of an agency is no small feat, but it’s easier with the right software.

Keep these five revolutionary trends in mind as we move into 2018, and your agency will see major growth.

Things You Need to Know When Starting a Temp Staffing Agency

Topics: Staffing Agency

Keep me informed with the latest staffing industry news

Jeff Kells  Freedom Staffing Group  Competing with the BIG multinational agencies ? IF SO, This case study is a must-read
David Machils  Intercast Staffing  Thinking of Starting  a Staffing aGENCY ? IF SO, This case study is a must-read