If you own a staffing agency, you are fully aware that cash is always tight.
That’s why it’s important to stay financially lean and make every dollar count, while running your operation at maximum efficiency. A good outsourcing strategy that includes payroll funding, for example, can help you do that, converting your fixed costs to variable expenses. This will enable you to invest in your company when it makes the most sense.
Payroll funding can make a lot of sense for your agency from a cash flow standpoint, and it allows you to direct funds where they are needed most.
So consider outsourcing payroll funding and three other service areas to improve your financial flexibility.
- Payroll funding. Working up strategies for staying ahead of your cash flow needs can be a full-time job. The challenge facing staffing agencies is that talent payroll needs must be met weekly, while your receivables can fall into 30 days, 60 days or longer. Consider using a trusted payroll funding company for convenient, short-term loans that smooth out cash flow and help you meet your payroll needs in hassle-free ways.
- Payroll and accounting functions. For a staffing agency providing temporary workers, payroll services are critical components of the menu of services you provide clients. But that doesn’t mean that your payroll and other back office responsibilities must be performed in-house. Payroll and accounting hours rise and fall with the level of business you’re doing, so it often makes sense to hire outside talent to handle these labor-intensive duties as you need them.
- Advertising and promotion. Your staffing agency must constantly write job descriptions in ways that appeal to job candidates, then strategically place your communications with the most effective and cost-efficient media. But is this your area of expertise? If not, employ the services of marketing firms and advertising agencies that specialize in recruitment communications. That’s all they do, so they can do it faster and better than you can and with greater strategic expertise than your own people. Trust the experts to complete the job, and free up the time of your salespeople for reviewing applicants, finding clients and better serving their needs. If an ad agency seems beyond your budget, consider hiring the services of freelance creative and media talent at lower hourly rates.
- IT services. Your digital infrastructure is critical, and if it goes down, that lost time costs you money. In those cases, you need immediate help, but is your staffing agency at the point where you need permanent in-house IT support? If not, employing tech people might represent unnecessary overhead. Consider hiring IT services rather than being saddled with the full-time payroll expense.
As a full-service payroll funding, invoicing, payroll taxes and credit monitoring resource, TemPay enables staffing agencies to focus on growing their businesses.