The good news is that 2015 is expected to offer more staffing agency opportunities than we’ve seen in a long while. Here’s a look at staffing agency funding, payroll financing and other trends you’ll see as we go deeper into 2015.
You should consider payroll financing to protect cash flow. If you have to increase your compensation to keep top talent and pay more to fund increased temp payrolls in a growing economy, doing so is going to ding the corporate checking account. That’s why more staffing agencies are outsourcing their payroll services by turning to factoring companies for their staffing agency funding. A good payroll financing provider can offer competitive short-term payroll financing on your accounts receivable, as well as such associated services as invoicing and credit monitoring, allowing your agency to grow your business without worrying about the impact on cash flow.
Your top recruiters will expect to be appropriately compensated — or they’ll go elsewhere. The growing economy means that there’s more movement in most U.S. job sectors, and that includes the job recruitment field. You’ll find more competition for top talent than most staffing agencies have seen since before the Great Recession. As a result, you need to make sure your compensation packages stay competitive and that your best performers know they’re appreciated. While this will require an increased financial commitment on your part, it should come back in the form of a sales boost.
You’ll do more business. According to the CareerBuilder 2015 Hiring Forecast, 36 percent of employers plan to add to their full-time permanent workforce in 2015, a 12-point increase over the 2014 number. But watch out — all of those open positions also trigger a prediction for increased turnover. First you’ll see this as an opportunity to do more business — which it is — but too much turnover coming from your agency can sully your reputation and lead to client dissatisfaction, which will impact your bottom line. So be as careful about the quality of your hires as you are about the quantity.
Temp placements are also expected to increase, according to the same CareerBuilder forecast, as 46 percent of employers plan to hire temporary or contract workers, up from 42 percent last year. Once again, this is good news, but if you handle temp placements, it will crimp your payroll staffing agency funding.
Good luck, and enjoy all of your fresh opportunities in 2015.
As a full-service payroll funding, invoicing, payroll taxes and credit monitoring resource, TemPay enables staffing agencies to focus on growing their businesses while WE handle their staffing agency funding needs. Discover our payroll factoring process here, read our FAQs for deeper understanding, and start your engagement with TemPay by applying for credit for your staffing payroll needs, safely and securely.