So, it’s finally happening. You’re launching your own temporary recruitment agency. This wasn’t a spur of the moment decision; it’s been in the works for a long time; lots of planning that will give you the best chance of seeing success when other startups failed.

But have you thought about everything? Do you have all you need in place ready to go? Will yours be the agency that breaks through those brutal first 12 months?

These are the questions that will haunt you long before you finally launch, and for a while after you open your doors. What can make or break your agency is how you approach admin; especially your recruitment funding.

Don’t worry, we’re here to help.

 

The Importance of Recruitment Funding

Temporary recruitment is all about cash flow. You need to be able to pay your temporary workers every week, using funds created by invoicing your clients.

This isn’t as simple as it seems. Invoices are often monthly, and you may even offer longer payment terms in those early years to entice more clients. As a result, you may have long periods of time, weeks or even months, where you don’t have the funds to pay your workers.

Temporary staff may have already taken a gamble by choosing a new agency over an established one, so not paying them on time won’t encourage them to stick with you.

The solution? Recruitment funding. This gives you access to all the funds you need to pay your workers, for a minimal fee to your third party supplier.

However, there are some things you should know about before you invest.

The Pros and Cons of Recruitment Funding

The advantages of recruitment funding are plain to see. You keep cash flow consistent, and your temporary workers happy. It’s a weight off your shoulders, and you won’t have to worry every time a client is slow to pay an invoice.

But, depending on your provider, it might not be all sunshine and rainbows. Most recruitment funding providers don’t give you access to all the funds you need at once, so there may be times when you need to dip into your other pools of income to keep workers paid on time. For a new agency, these pools can be very shallow, and the funding you may have received to set up won’t last forever.

There’s also the cost of the service to consider. Initial fees may look reasonable, but hidden costs and extras can soon cause headaches, especially if you weren’t made aware of them from the start.

With Back Office Support Services, you never have to worry about any of these issues.

We offer 100% recruitment funding. This means that you’ll always have access to the funds you need, regardless of the amount you’re missing. And this is for a single price too, with no hidden fees. We’re fully transparent about what you’ll need to pay so you can plan accordingly.

And that’s not all. By choosing Back Office as your third-party provider, you also get:

All for a single fee from a trusted provider.

When is the Best Time to Invest in Recruitment Funding?

By now, recruitment funding sounds pretty great. But if you’re just getting started, it might not be the ideal thing to invest in.

During the first 12 months, you’ll ideally want to handle a lot of the admin yourself to keep costs low. When you only have a few clients, this makes sense, as your team can balance those tasks while also working to grow your database and find new clients.

When you initially set up your agency, you probably chose a few people with plenty of industry experience for this very reason.

But scalability is very important in temporary recruitment. If things get busy quickly, that’s great, but if your team are handling all the admin on top of everything else, they’ll be stretched very thin. This can lead to errors or frustration, both of which can harm your agency and its reputation.

This makes the decision trickier. Over the years, we’ve seen new agencies invest too heavily in third-party providers, and struggle to stay afloat because of the costs. As much as you’ll want to catch up to your competitors, you need to play to your strengths.

How we Help you Hit the Ground Running

We work with agencies from day one, giving you access to all the benefits of recruitment funding right from the start. However, after nearly 30 years, we can afford to be a little picky, and prefer to work with agencies whose owners have plenty of recruitment experience.

There’s no need to use us from the start either. It is often better to wait until you notice the admin tasks affecting your agency’s effectiveness.

Our service makes temporary recruitment agencies more efficient. If you reach the point where you can no longer justify handling the admin without outside support, that’s the time to get in touch. We don’t just work with new agencies either; if you’re a bigger name but have noticed that you’re falling behind your rivals, our service helps you to optimise your agency and catch up fast.

What sets us apart from other third parties is our desire to see you succeed. We’re as invested in your success as you are, and are proud to support agencies as they push forward. Whether you’re working within a niche corner of recruitment, or offer a bit of everything, we’re the team to call.

Recruitment Funding when you Need it Most

If you’re starting a new recruitment agency, you’re under a lot of pressure. Recruitment funding support can look very appealing, but you need to be careful about where you spend your money.

You might be determined to go it alone for a while, and that’s absolutely fine! Just be sure to give us a call when you need to streamline your operation. When the time comes, we’ll be here!

If you’re relatively new to temporary recruitment, or are just looking for a few more hints and tips, we have plenty of blogs available that can help give you an edge. And if you’re just looking for some advice, we’re always happy to have a chat.

Best of luck, and we hope to hear from you soon!