5 ways recruitment agencies can prepare for the new financial year
Now is the perfect time to review your back office, overheads and contract types. Here’s where to focus your attention.
Whether you are a start-up recruitment agency or a long standing multi-location firm, being prepared for the new financial year can help you manage – and grow – your business efficiently.
In fact, taking simple steps such as improving your back office systems or reviewing your overheads, can go a long way to making sure the year ahead is a productive one.
If you are thinking ahead to 2017-18, here are our top five ways recruitment agencies can prepare for the new financial year.
1. BETTER BACK OFFICE SYSTEMS
There’s no doubt admin can easily bank up, and if you miss payroll or get your calculations wrong, your business could be at risk. If your time for paperwork is tight, streamlining your back office can drastically reduce your administration burden. Look for a solution that can either plug any gaps in your existing set up, or provide a complete overhaul to improve your systems for the long-term.
2. EFFICIENCY OPPORTUNITIES
If your recruitment agency has experienced recent growth, it could be time to start outsourcing some functions so that you can focus on further expansion. Some of the most effective time-saving areas include outsourcing the follow up of late paying customers, managing your contractors, and streamlining the administration of your payroll, timesheeting and invoicing.
3. IMPROVING YOUR SPREAD ACROSS TEMPORARY AND PERMANENT PLACEMENTS
It’s no secret that the temp and contracting market is growing in Australia. In fact, it’s growing almost three times faster than permanent sales, regardless of agency size, according to new RIBreport data shared with APositive last month. By combining both temporary contracts and permanent placements you can level out your cash flow, offer a wider range of services and more fully satisfy your client demands.
4. REVIEWING THESE 5 OVERHEADS
To maintain a sustainable business, you must keep a close eye on your overheads. The beginning of a new financial year is always a good time to review things like:
• Variable expenses – anything that you can turn on or off with reasonable notice
• Marketing expenses – candidate and client acquisition
• Occupancy expenses – rent and utilities
• Management and staff expenses – all remuneration, recruitment and training costs
• Corporate expenses – insurance, legal, IT
5. CONSIDER BENCHMARKING
Have you ever wondered how your recruitment agency compares to market peers? Or whether your profit and loss is on par with other agencies your size? Using a benchmarking product like RIBreport can help you see how you’re tracking relative to your peers and identify areas where you can improve during the year ahead.
Interested in what small and medium sized recruitment agencies should know about operational costs? Read our recent APositive insights powered by RIBreport.