Do Staffing Agencies Need Outsourcing Solutions?

AdminAssist January 5, 2022
7-minute read
hand spelling out outsourcing on a blackboard

By their very nature, staffing agencies are busy places. In the past two years, staffing agencies provided jobs for just over 13 million Americans. And that's spread across just 20,000 or so companies US-wide.

That means there are a lot of activities going on behind the scenes to keep things ticking over at the necessary rapid pace. Payroll, office management, recruitment, human resources, account management… the list goes on.

If you're looking for a way to scale your staffing agency cost-effectively, it's time to consider outsourcing solutions. Read on to find out how outsourcing administration and more could help your business thrive.

Effortless Administration

Temp work is just what it sounds like: temporary. They typically last somewhere between 3 and 12 months.

So that means a staffing agency is:

  • Turning over staff
  • Crafting, renewing, or retiring contracts
  • Processing invoices
  • Paying salaries

And all by the hundreds or even thousands every month.

A significant benefit of outsourcing is handing all this complicated administration work to someone else.

For example, outsource your invoicing process. Suddenly, you have more time to dedicate to your recruiters and human resource staff. And these are the people who actually bring the money into your business.

We're not saying payroll, office management, and other administrative tasks are trivial. Far from it. We're saying outsource that to a company with the skills, resources to handle it quickly and for less money than a full-time staff member.

Cut Your Costs

So that leads us to one of the most important reasons to outsource.

You can save some of your precious profit for growing your business. Not paying arguably less-effective in-house staff. Outsource and reduce the risks associated with:

  • Human error
  • Non-compliance issues
  • Human resource disputes

You'll find that if you widen your idea of how or where work can be done, you can achieve similar results for a lower cost. Look outside the US for competent workers in low cost of living countries, or look for platforms that take advantage of the latest advancements in automation technology.

If you're curious about the savings you could make if you, say, outsource payroll, test it out with an online outsourcing savings calculator.

Track Your Successes (and Pain Points)

When you're head down in the day-to-day running of a large staffing agency, it can be hard to take a step back and look at the bigger picture.

For example, if you outsource accounting, a company with an entire team dedicated to your account is more likely to catch invoicing errors or suggest more efficient systems than a single person ever could—no matter how experienced they are.

This means you're reporting and analytics can suffer. Instead, let an outsourcing company take care of tracking progress, and you can use the data they feedback to you to engineer the strategic decisions best for your company.

Smoother Foreign Worker Recruitment

Does your staffing agency deal with foreign worker recruitment?

Outsourcing providers that work in the international hiring sector know just how complex tax, insurance, accommodation arrangements, and so much more can get when bringing workers into the United States. Not to mention having to deal with the rules and regulations of overseas governments.

So why not hand those logistics over to them instead of taking on the risk and expense of building, retaining, and paying an in-house team?

Compliance Becomes Less Burdensome

If you're still asking the question, "What is outsourcing, and why should it matter for my staffing business?" you've conveniently forgotten about the hassle it is to deal with compliance issues on your own.

Recruitment agencies work across almost every industry, and there are few, if any, industries that don't have tonnes of red tape to deal with. Can you really be sure your internal team can stay on top of the constantly changing tax and employment law recommendations and policies? And then that's at the state and federal levels, too!

Outsourcing areas like payroll, accounting, and invoicing mean the burdens of compliance fall on that company's shoulders rather than your own.

Free Up Your Brain

Owners of smaller staffing agencies are typically forced to wear many hats, especially when you're heavily involved in the business's recruitment or client management aspects.

Having to turn your mind to tedious tasks like signing off invoices, dealing with overdue payments, or refereeing internal staffing issues takes away from the time you need to think about growing your business.

Outsource the more administration-heavy tasks so you can focus on the big picture.

Cope With a Growing Internal Workforce

The recruitment industry is expanding at a rapid pace in America. The online recruitment market alone is expected to grow by over 7 percent between now and 2028.

That means that if you're good at what you do, your staffing firm will likely be employing a fair few new recruiters in the coming years. And with ballooning staff numbers comes extra work in the area of payroll. Why not outsource that so you can focus on what matters: hiring the best recruiters and building a team of experts.

Learning to Trust

When it comes to the workplace of tomorrow, trust is an increasingly important factor.

Not only are more workers working remotely than ever before, but researchers are finding that employers who focus on outcomes rather than time spent in the office end up with more productive, engaged, and committed employees.

Outsourcing your work teaches you and your managers to trust that the work will be done, even if you can't physically see that person sitting at the desk opposite your own.

Why Outsourcing Solutions Are the Answer

Perhaps you need help balancing the books of a revolving door of temporary workers. Maybe you need to free up some of your senior recruiters to give them time for some much-needed upskilling. If you need more hands on deck at your staffing agency, outsourcing solutions offer an affordable, flexible option for soothing out those inevitable operational tempests.

At AdminAssist, we take the effort out of your account, payroll, and invoicing. You simply upload the necessary data to our system, and we'll take care of the rest. Contact us to find out more about how it works today!