7-minute read
Staffing and recruitment is a tough job, but when you do it right, you're in demand. One of the hardest things to learn about running a staffing agency is how to scale a business without increasing overhead — and without burning out.
Considering the pandemic shrink and post-pandemic explosion in staffing needs, learning to scale up or down quickly is the number one trend to chase for 2021 H2 and beyond.
There are no signs of it slowing down any time soon. Temporary staffing grew by 11% during the first half of 2021, shooting past pre-pandemic levels.
Keep reading to learn how to scale a staffing agency, reduce overhead, and increase ROI before you miss out.
1. Work From Home Is Here to Stay
Work from home lifestyle has been fought against by almost every employer, saying it reduces productivity. That myth has been blown out of the water time and time again by statics and now by a whole pandemic.
As a staffing agency, you should know that most freelance and contract workers were already working remotely. Throw in the most recent pandemic along with the current level of technology and the world has realized you can scale workers without scaling workspace through remote work.
Depending on where your business is, physical office space could be one of your largest expenses. Adding a secure workstation and equipment onsite comes next.
Some of the largest companies are scaling down headquarters for this very purpose. Maybe you should be thinking about doing the same.
2. Keep Up With Emerging Industries
New industries and new applications of technology aren't only news reports, but something you need to pay close attention to. Only 14 years ago, no one had ever heard of a smartphone. Yes, let's let that little moment sink in that your teenage child is younger than the first iPhone.
The mobile revolution, the app revolution, has already happened. What could possibly emerge next?
Solar power is one of the fastest-growing industries, with battery technology coming along with it. The continuing growth of solar technology, including new applications of perovskite materials, means the growth of solar panel installers.
It also means the growth of professionals researching these technologies, factory workers making batteries and solar panels, marketers for solar pane installation companies, and more.
The blockchain is creating an entirely new financial technology sector, with fintech 3.5 (the greater financial inclusion of almost 3-4 billion people) only mere steps away.
What do you know of these technologies and the workers in them? Don't lag behind, be at the forefront.
3. Use Social Media to Your Advantage
Between 73% to 84% of adults 18-64 — the main workforce along with the highest pool of resources — is using at least one form of social media. This is also growing over time.
YouTube is the most popular, followed by the old standby Facebook, Instagram, Pinterest, and finally LinkedIn at 28% of US adults. If you're only using LinkedIn, you're negating an additional 53% of Americans.
Facebook has the most users, and Instagram has reels, stories, and picture media posts that engage billions across the globe. Keeping your mindset local, regional, countrywide, or global will give many benefits and drawbacks.
You should consider how big or how focused you want your staffing agency to stay.
4. Develop a Repeatable Sales Process
To increase your size you need sales to continue. To do that you need repeat business.
You need to:
- Identify your best businesses
- Your ideal clients
- Provable benefits
- Understand the factors that close a sale
- Get busy standing out
To do this you need data. Your recruiters need to understand their position as an agent between businesses and workers, but also as salespeople.
You need to ask for specific targets your customer needs to fill, and target dates. Identify the needs of each vacant position and the problems associated with the vacancy.
Most of all, learn how to overcome objections and redirect. When a child or a puppy starts with bad behavior, instead of scolding redirecting their attention to something better is a much better tactic. Instead of dwelling on the reasons they have to object using you to fill a vacancy, redirect to a reason they can't pass you up.
Instead of being a vendor, make yourself a valued advisor.
5. Outsource Your Backoffice
The average cost of an HR manager alone is over $120,000 per year. That's also not figuring in the accounting department. Of course, you still need someone in-house to manage accounting and HR management.
However, outsourcing your accounting and HR needs can bring you a higher level of professionalism and cost savings than you thought possible.
Figuring out workers' compensation, accounting, and more can be a tough thing to do. Things change every year and it's tough to keep up if you have so much administrative work to do.
Outsourcing your back office is a more efficient use of time and resources than paying an in-house worker. You're frequently telling businesses to consider outsourcing to remote workers and freelancers, and this is no different.
Or is it? Actually, instead of one contract worker, your staffing agency will be getting an entire organization working on its HR needs.
Where's the value, you ask? Where's the value in passing up this kind of opportunity?
How to Scale a Business: Staffing Agencies
It's important to know how to scale a business in a time where we may need to scale back or scale up at a moment's notice. As a staffing agency, you know that lesson better than most.
AdminAssist is an accounting, payroll, and invoicing company that can help you to expand and contract as needed. We can help you navigate HR needs like COVID-19, employment trends, and even navigating laws.
We have decades of staffing experience and can help you to scale while you lower overhead expenses and increase your ROI because of it. Need to know more? Contact us today to see how AdminAssist can help you!