Running a recruitment business is never easy. Whether you’re just starting out or well-established, cash flow and efficient back-office support are both vital to success – but doing this yourself isn’t easy either.

Let’s face it, nobody sets up a recruitment agency to deal with the admin, which is why many agency owners outsource recruitment funding, payroll funding, invoicing, and credit control. However, this isn’t always the ideal solution, and can do more to hinder than help.

Today we’re going to explain the pros and cons of outsourcing recruitment funding, and why the way we do things is so beneficial for our clients and their customers.

 

Why Recruitment Funding is Important

Cash flow and efficient back-office support make all the difference to how smoothly your business runs and to its reputation. Even if you’re doing well, with plenty of funds available, there will still be times when you have to shuffle some funding around.

Most temporary recruitment agencies send out monthly invoices to their clients. But the temporary workers they provide need to be paid every week. This means that there isn’t always money coming in when you need to pay salaries, just like how an unexpected bill a week before payday can leave you short of cash.

With recruitment funding, you have access to additional funds if there’s a gap. This means that you can continue paying your workers on time, keeping your reputation squeaky clean.

Even if it’s only a small window where things get tricky, there will be a time when invoices aren’t paid when they should be, and the gap widens. Our invoicing support helps to prevent this, by ensuring your invoices are all spot on to reduce the risk of errors (which cause delays), and staying in regular contact with your clients to ensure none are missed.

 

The Challenges of Outsourcing Recruitment Funding

Outsourcing back-office services like recruitment funding can free up your existing team so they can focus on what they do best. It’s a great idea on paper, but only if you choose a company you can rely on.

Time and time again we hear stories from recruitment agencies who outsourced recruitment funding and other administrative tasks but were very unhappy with the quality of service they received.

This is normally due to lack of communication. If the company you’re using isn’t in regular contact with your clients, they won’t learn how they prefer to do things, and invoices can sit unpaid as a result, or complaints will come your way. They might also avoid contact with you, not providing regular reporting or ignoring your questions.

It gets even worse if you’re outsourcing to multiple companies. Not only is this much more expensive, if they don’t talk to each other, things will start to fall apart. Recruitment funding should be a collaborative effort, which is why we work with you, as well as providing all the services you need under one roof.

 

When to Outsource Recruitment Funding

There’s never a bad time to start outsourcing recruitment funding and other services. It’s a strong investment in your business, and the ROI comes quickly.

But if we had to say when the best time was, we’d have to say after the first 12 months of starting a recruitment agency. Even with up front funding, not many recruitment agencies make it past the first year, so those that do tend to have a solid client base and team backing them up. But as you grow, the pressure mounts, and you want to free up your team from their admin tasks so that you don’t have to hire more permanent staff just to keep up.

By outsourcing early, you can keep the momentum going, growing quickly while the admin is handled by the professionals. You’ll also be building a strong reputation with your clients – we’ll help you with that.

Building your business around contractors and temporary working has a massive impact on cash flow too, as you’ll be having to pay people before clients have paid you – so having invoice financing on a weekly basis, complete with debt insurance and transparent fees so you know where you stand will give you the reassurance and stability to grow.

Another optimal time is when you’re frustrated with your existing back-office providers. Switching providers can be daunting, and it can take some time for things to get back to normal. The good news is that Switching back office providers has never been easier!

We hit the ground running, integrating seamlessly into your agency, with both your dedicated credit controller and your payroll account manager feeling like part of the family after just a short time.

 

Taking Temporary Recruitment Agencies to the Next Level

Growing your business takes time, commitment and focus – all of which outsourcing can help you with, as you’ll have access to experts in recruitment agencies and reliable support taking away some of the stress of running your business.

Choose Back Office Support Services and we’ll streamline your processes and open up all sorts of opportunities to grow your team, gain more clients, and develop plans for your future.

And while you’re busy looking to expand, having a reliable source of recruitment finance and efficient payroll funding services will make sure your contractors, temps, and staff are paid in full and on time, maintaining professionalism and helping to consolidate your existing business. In other words, outsourcing is one of the best ways to make sure you deliver the right service while you get on with growing your agency.

If you’re ready to switch providers, or outsource services for the first time, we’re here to help. Feel free to check out our other blogs for more information, or get in touch if you have any questions. We look forward to hearing from you!