What’s new for temporary recruitment businesses in 2017
Plus, three things temp recruitment agencies should know about running a successful business this financial year.
Regardless of what sector you are in, you’ve probably noticed the demand for short-term contacts is on the rise.
This means, as the shift towards a contingent workforce continues the opportunities for temporary recruitment businesses is strengthening.
In fact, creating and managing temporary recruitment agencies is one of the fastest moving areas in recruitment nationwide.
So, this month, we take a look at what’s changed for temp recruitment businesses in recent times. Plus, outline the top three considerations to ensure successful operation in 2017-18.
What’s new for temporary recruitment businesses
As the global demand for non-permanent employment continues, new and progressive opportunities are arising for temporary recruitment businesses. These include:
- More options for cloud payroll and time-sheeting systems;
- Greater capability to outsource back office tasks such as chasing late paying customers, generating end of month customer statements and cash reconciliations; and
- More flexible solutions for SME recruitment businesses to finance growth.
3 considerations for business success this financial year
With the demand for temps or contractors increasing nationwide, these key areas should be considered to ensure you enjoy smooth and efficient operation during 2017-18.
1. Back office focus
Now more than ever it’s important to have a structured back office in place. Without this, you risk your business administration tasks getting out of hand, which can quickly slow your efficiency and threaten your bottom line.
2. Compliance requirements
If your business model is adjusting to offer more temp and contract placements, ensure you are across the current compliance requirements now – and continue to monitor these correctly into the future. This includes how you manage your payroll (whether it be in-house or you outsource), how you keep up with tax obligations and adhering to other industry compliance requirements.
3. Cash flow to grow
If you don’t manage the natural industry mismatch in cash flow – that is the gap between when you need to pay out your payroll and when customer payments come in – you can find your business suffocating. Instead, look at payroll funding or invoice finance solutions that can advance the funds you need to keep your business progressing during this time of high demand.
Don’t miss this month’s APositive Insights Powered by RIBreport: How recruitment firms can leverage their largest expense