Running a staffing firm is full of challenges. For people like you, that’s a good thing. The little ups and downs keep you on your toes. You love being able to sit down with a problem and think it through to find creative solutions.
One of the most common places to find challenges in a staffing firm is in the back office. With back office data, however, you can start making better decisions to overcome these obstacles.
What Is Back Office Data?
What is back office data, anyway? It’s the data generated by the administrative tasks in your business. Think of the information you generate when administering payroll or creating invoices.
It can also include information about time. How are your employees spending their time? How long does a particular task take in your business?
The information can even include marketing data and overhead costs.
All of this information is important for your business. You probably knew it was important to keep tabs on how much you were spending on payroll and overtime, or how much revenue you brought in.
Back office data can tell you much more about your business, however, provided you analyze it.
What You Can Learn
When you begin analyzing data in your business, you’ll learn much more than just how much revenue you’re bringing in or how much you’re spending.
You might have already known about the kinds of information you can gather in financial data reports. You can see increases in expenditures or decreases in overheads. You can then tie that information back to changes in the regulatory environment or new programs you’ve implemented.
Data analysis can tell you more about the health of the business than just year-over-year growth statistics. It can show you information about things like productivity, efficiency, and other performance indicators.
Suppose you adopted new staffing firm software. You knew this software cost X dollars, and you were also aware you brought in more revenue and decreased expenditures after adopting it.
The data from the back office can show you more of the story. It can show you that your labour costs came down because your team was spending less time fixing mistakes or inputting data. It also shows they were able to accomplish more in the same time, improving their win rate with new clients. You already knew the outcomes, but now you also know how it happened.
Why Does It Matter?
Some business owners might ask if they really care why their expenditures decreased or their revenue increased. Those are both good trends, so it’s less important why they happened than that they occurred.
Understanding why these outcomes occurred is important, however, since it can help you make better business decisions. If you know how much time your staff spends on particular tasks, you can make better estimates about how much time you’ll save by adopting new tools.
This can help you decide whether adopting the new tool is really worth the investment.
You can also glean other information, such as how long it takes clients to pay their invoices on average. This could help you rethink your policies. Is there a way to entice clients to pay sooner?
You might rethink processes as well. How can you reduce the time spent on a task, for example?
Powering Your Business
It should be clear back office data gives you more information about your business. It helps you make smarter decisions.
As a result, you can provide better service to your clients and better experiences for your candidates alike.