5 questions answered about recruitment agencies and Christmas - APositive
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5 questions answered about recruitment agencies and Christmas

With the end of the year fast approaching we answer our top five questions to see you safely – and productively – through the holiday period.

You may have already noticed a key trend to sweep the Australian recruitment industry in 2017 was the increase in agencies using funding solutions to support growth.

However, just because the end of the year is near, it doesn’t mean you need to lose momentum or side step business growth opportunities.

To help, we answer the five most common questions we get asked about recruitment agencies and Christmas best practice. If you don’t see your question answered, contact us today.

  1. What are the most common issues recruitment agencies face over the Christmas and New Year period?

There’s no doubt slower client payments can significantly hamper cash flow and growth at this time of year. What’s more, as businesses get busier during the lead up to Christmas, they look to employ extra staff to handle the increase in workload. This means a lot of recruiters will see an increase in the requests for staff placements in November and December. Being able to only source the extra personnel is one issue, but also having the upfront cash flow to allow for the placement of extra staff is another.

  1. How should recruitment agencies approach permanent placements at this time of year?

We suggest making permanent placements well before the Christmas period hits. Decision makers are generally absent over the Christmas break, therefore permanent recruitment sale cycles will naturally slow down. Preferably a recruitment agency owner should look at hiring temp placements rather than putting on perms.

  1. Why should owners put on more temp placements for December and January?

If you have sufficient cash flow or a funding solution in place to support additional temp placements, it’s best to allow for extra temps during this time of year to help your agency handle the demand effectively. Temps allow you to get the extra people on board for the lead up to, and during the Christmas rush. Plus, placing them on a temp basis means after the holiday period when business returns to normal, clients can revert back to previous staffing levels.

  1. Is there still time to overhaul your back office before the end of 2017 – and why is it worth doing?

If you have down time over this period, there is no better time to review and improve your processes. Debtor financing to assist with cash flow can generally be set up in less than two weeks, especially when dealing with a non-bank lender who understands the cash flow requirements of Australian recruitment agencies. Furthermore, many contractor manager and payroll provider businesses can generally be fast to act and help get your back office and payroll systems ready for the busy Christmas build up.

  1. What is the first thing recruitment agencies should be ready for when the new year arrives?

A lot of businesses and their accounts payable departments will close down for a few weeks in the new year. This means recruitment agencies should expect that those increased invoices raised during the busy Christmas period, are not going to get paid on time or as quickly as normal. Having a flexible debtor finance facility in place is a great way to manage this delay. Invoice financing, payroll funding, and perm fee funding mean you will receive the majority of the invoice value on the day your invoice is raised, which means you won’t need to wait for the accounts payable departments to reopen sometime in January. Remember, recruitment businesses can also expect a downturn in sales straight after Christmas, with a lot of businesses no longer needing the extra placements post the Christmas rush.

Find out more about invoice finance and back office solutions.
Contact APositive to get your systems in order before Christmas hits. Phone: 1800 276 748.