One thing many new recruitment start-ups overlook is just how many resources are required to run an effective back-office, a critical oversight as these processes make up the backbone of a prosperous recruitment agency. An efficient and effective admin and back-office structure can be crucial to an agency’s success. Outsourcing can be key for many recruitment agencies, allowing them to minimise costs on staff whilst still growing the business.
Here are five signs which might indicate that your agency needs to consider back office outsourcing.
- My costs are too high – Traditionally, agencies will employ an internal administrator and an external accountant to take care of all the tasks encompassed by the term ‘back office’. Staff costs for trained and qualified individuals are high, and then when additional office space, computing equipment and software, and other related costs are factored in, significant savings could be made by outsourcing and the remaining left over assets reused throughout the company to make better use of them.
- I spend too much time on my back office – In many small recruitment agencies, the back office is run by a company director or senior manager whose time would be better spent on other tasks, namely growing and running the business. Outsourcing the back office relieves pressure on staff who are controlling it on top of their other duties, and allows for reallocation of time.
- My back office team are rushed off their feet – Attracting additional clients and hiring extra hands never aligns perfectly, and you may find yourself with new clients which will overwhelm your current team but not warrant taking on new staff. Additionally, it can be unfeasible to hire staff to deal with additional work load created by short-term contracts. Outsourcing is almost always completely scalable with your requirements.
- Everything grinds to a halt due to staff sickness… – …or any other out of the ordinary circumstance which removes a staff member from the office for a few days. It is very important to maintain consistency in many back office processes so you need to be sure that your business can survive staff absences for a variety of reasons (sickness, holidays, maternity, etc.). When your back office is outsourced you can rest assured that there will be no interruption in vital back office services.
- I want to offer my clients the best services available – Due to economies of scale, an outsourcing company will be able to offer you services which you may not otherwise have had available until your agency had grown substantially in size, such as invoicing clerks, payroll administrators, credit controllers and management accountants. These services aren’t just useful for your back office, but also for projecting the image of a much larger agency, helping to instil confidence in clients.
Outsourcing is not something which will work for every agency without fail, but when you’ve considered all factors, sum up whether there is a saving of time and money – if so, outsourcing is definitely something which you should consider.
If you think these signs you need to outsource your back office processes sound familiar, TBOS’s outsourcing services are fully featured and can be used by both permanent and contract recruiters alike, allowing you and your team to spend less time chasing invoices and more time doing what you’re best at….selling. Contact us now.