There are now over 35,000 recruitment agencies registered in the UK, with the number is steadily increasing as top billing recruitment consultants are ceasing the opportunity to become their own boss.
With this being said, many of these new start-up agencies will be formed by one or two individuals and will stay relatively small in size rather than progressively growing into a large recruitment agency.
THAT’S WHERE TBOS COMES IN…
We work with all sizes and types of recruitment agencies, including single recruiters, contract and permanent agencies and agencies that place permanent and contract placements sporadically.
‘MY RECRUITMENT BUSINESS IS NOT BIG ENOUGH TO OUTSOURCE MY OFFICE ADMINISTRATION’
For the smaller agencies this a common remark we hear as they will say that they don’t do enough business to warrant using our service, meaning they carry out all their administration themselves or that they will consider it when their agency grows a little bigger.
However, they are missing out on the many benefits of using a back office and accountancy service – EVEN if they are a small agency:
CUT UNNECESSARY ADMINISTRATION AND GAIN VALUABLE SALES TIME
Most recruitment consultants will often consider raising their own invoices, performing credit checks and making supplier payments. They may even opt to manage the timesheet process and contractor payments. However, any time spent on this kind of administration will cut into time that should be spent making sales calls, meeting candidates and managing placements.
OUTSOURCING MAKES AGENCY LOOK MUCH LARGER
Most outsourcing companies will have a process where they will make or take phone calls or send or receive emails under the guise of the agency instead of as the outsourcing company. This gives the impression to the clients and candidates that the agency is much larger than the small consultant team and can work in the agencies favour. If the client receives invoices from one person and credit controlled by another, then sales performed by another, it portrays the agency as much larger and more professional company.
BACK OFFICE SOLUTIONS PROVIDE CONTINUOUS DAILY SUPPORT
Outsourcing back office and accounts services delivers administrative guidance and support during working hours, on a full-time basis. As a small agency, this is an invaluable service especially when consultants are busy on a call, or in a client/candidate meeting or even during times of annual leave. Furthermore, if the agency decides to take on a part-time administrator to undergo the daily tasks, the daily administration could fall short when they decide to take holiday.
MONTHLY MANAGEMENT REPORTING IS VITAL TO MONITOR GROWTH AND CASH-FLOW
Most outsourcing companies will provide monthly management reporting as part of their accounting solution. This is very helpful for agencies to understand their performance and spending habits, allowing them to manage their cash-flow on their overheads and makes them aware of any or outstanding HMRC debt. This type of reporting is especially important for smaller recruitment agencies as it will help them to understand on how to grow their business and ensures they stay out of trouble from the HMRC.
MONTHLY OUTSOURCING FEE ELIMINATES COST OF FULL ACCOUNTS TEAM
Outsourcing companies are able to provide multiple services under one roof. This is great for recruitment agencies as it eliminates the need to hiring a whole administrative team to cover roles of invoicing clerks, payroll clerks, credit controllers, bookkeepers, management accountants and a year-end accountant. Even if an agency hires one person to look after all of these roles, the cost of this salary would be exponentially high compared to a monthly fee paid to an outsourcing company.
HOW TBOS CAN HELP
TBOS already provide flexible back office solutions to single consultant-based recruitment agencies as well as agencies who employ a small team of two-three consultants on its books. Be it solely permanent placements, contract placements or a ‘bit of both’, our diverse client base enjoy our back-office solutions because it gives them more time to spend on recruiting and relieves them from daily mundane administrative tasks.