Common Problems In The Recruitment Industry and How to Resolve Them
Running a recruitment agency is a rewarding and potentially lucrative career that also delivers satisfaction that you’re helping talented people thrive in new work opportunities. Like all management roles, however, there are some common operational hurdles to negotiate. Finding effective solutions is the key to unlocking the efficiency and productivity of your business – without incurring excessive costs that are a bar to generating bigger profits.
When Back-Office Administration Becomes Burdensome
As your recruitment business becomes more successful and profitable, it can be a challenge keeping on top of your outgoing payments to ensure that the money is going to the right places. Managing your company’s finances can be time-consuming and, if you need to employ in-house specialists to look after your accounts, expensive.
Cash flow can be a problem, particularly because of credit payments and the delays that sometimes occur between paying temps and receiving payment by clients. For all organisations, business is slicker when their finances can be predicted, which is why recruitment agencies need a steady cash flow that doesn’t depend on clients paying on time.
These problems are more acute for smaller recruitment agencies, for whom late payments from clients are more common. As a recruitment agency, you have a responsibility to ensure that temps and contractors receive their salary on time, so effective and efficient management of your books and accounts underpins a prompt and reliable payments system.
Finding a Solution
Resolving these issues is important to ensure that contractors are paid, and your business’ financial position remains stable.
While appointing a full-time in-house accountant to manage your agency’s finances is one option, this is a highly expensive solution that will simply drain money from your profits. As well as their salary, you’ll have to pay for costs such as pension and National Insurance, in addition to recruitment and advertising. Highly skilled accountants are like gold dust, so you’ll need to be prepared to part with a tempting salary to attract the best candidates.
You’ll also face the problem of replacing the accountant when they decide to move on, with a period of transition likely as the new employee familiarises themselves with your business’s systems and transactions.
How Working With TBOS Can Help Overcome Problems
At TBOS, we can alleviate the stress and high workload of managing your recruitment agency’s accounts, enabling you to focus on developing your business and expanding your talent pool.
Our specialists will manage your accounts and books behind-the-scenes, giving you confidence that your business’s financial data is being expertly handled. To find out more about our accounting and back-office administration service for recruitment agencies, please call us today on 0345 504 6333.
Image Source: Unsplash