While people often make personal New Year’s resolutions, making them for your business is just as, if not more, important.
Here are five resolutions staffing firms should make in 2013, according to C. Adam Forbes, president of BaronHR.
1. Know when to say no. Staffing firms are presented with a lot of opportunities for new business, and sometimes, it’s a knee-jerk reaction to say yes because you want to bring in business and increase your revenue stream.
However, it is important to first fully analyze the potential client to see if doing business with it will be good for the business long term. To determine whether that is the case, ask the following questions.
- Does the client have a good reputation?
- Does the client have financial backing?
- Is the client able to pay invoices in a timely fashion?
- Does the client have a good safety record?
Don’t be afraid to turn down a client that doesn’t seem like a good business partner, even if you’re just starting an employment agency, as doing so it will help you avoid headaches down the line.
2. Don’t be afraid to use outside sources. Some firms try to do everything themselves, but that only leads to time taken away from more productive activities, such as speaking to clients or visiting a job site.
Utilizing outside vendors for tedious tasks frees up your time and allows you to focus on what’s important. For example, a payroll funding factor can often complete the above due diligence on a potential client and also handle back-office tasks such as paying your employees, filing and paying your staffing agency payroll taxes, invoicing your customers and collecting or following up on delinquent accounts.
3. Avoid quick hits. Staffing firms often love too-good-to-be true opportunities that seem like they will result in a quick, easy profit. However, these are also the opportunities that can most hurt a staffing firm as a result of small mistakes.
A firm is often so eager to complete these assignments that it sends the wrong type of people or fails to properly prepare them. For example, if a client needs 10 people to work overnight in a cold-storage facility, make sure you recruit people who are willing to work overnight and in the cold.
Too many firms send workers without making sure they’re qualified or preparing them for the assignment, which can lead to a poorly completed job. Take the time to look over the specifics and recruit the right people.
4. Know when to cut ties. Similar to knowing when to say no, many staffing firms don’t know when to let a client go because they are afraid of losing the revenue. Some also don’t realize there is a problem, which is why it is important to monitor your clients’ activities on a weekly basis. It’s hard to walk away from a client, but sometimes it needs to be done. If a client has a pattern of late invoices, communication may do the trick. However, if after speaking to the client, the issue is unresolved or recurs, it may be time to trim the fat.
5. Remember that your temp employees are the heart of your business. It’s easy to get caught up in the day to day, but it’s important to take a step back and look at what your company provides. Staffing firms aren’t a conventional business in that they don’t have a tangible product. The product is the people you recruit and hire to work.
Just as an ice cream maker wants to provide the best possible ice cream to its customers, so should you staffing firm want to provide the best possible employees to your clients. Treat your temp employees with respect and dignity, and make an effort to get to know them, and you will be rewarded with loyalty and hard work.
How to reach: For information on how TemPay can manage your payroll effectively and affordably, contact www.tempay.com or (866) 6-TemPay.