A back-office Business Process Outsourcing (BPO) strategy enables a staffing agenc to contract out several essential business functions within the agency to both manage costs, reduce inefficiencies, and multiply revenues within the organization.
Staffing firm owners must maintain a steady focus on marketplace strengths, opportunities, and risks in any economy. However, recruiting agencies across virtually every vertical have had to up their game to remain vigilant in the wake of COVID-19 disruptions.
Maintaining a staffing business amid a global pandemic that seems to be continuously influencing various job sectors in different, often unpredictable, ways requires more than mere pulse checks on potential market shifts and vulnerabilities. Instead, today's staffing firm owners must proactively engage and innovate as they continuously seek new ways to optimize efficiencies and minimize possible financial threats in hopes of gaining a long-term competitive advantage.
Do BPO Services Make Sense for Your Staffing Firm?
Many recruiting agencies struggling to protect their operations and earn market share during a global pandemic have recognized the benefits of integrating a back-office business process outsourcing (BPO) solution within their enterprises. While BPO vendors can align resources with companies across multiple industries, they can play a particularly essential role in the success of staffing agencies. This is especially true for smaller staffing companies with owners struggling with wearing the many hats needed to both support their current headcount and grow their bottom line.
A back-office BPO strategy enables a recruiting firm to contract out several essential business functions within the agency to both manage costs, reduce inefficiencies, and multiply revenues within the organization. Most importantly, a BPO enables staffing firm owners to stay focused on the things that will directly impact their profit margins.
Some standard BPO services include:
Employer of Record: Your chosen BPO provider assumes responsibility for the employee while it’s working for your staffing firm, eliminating unnecessary risk for your agency.
Payroll Processing: A BPO firm streamlines the invoicing and payroll process, ensuring your candidates (and you) get paid.
Onboarding: Stop chasing new hire paperwork. Experienced BOP vendors automate the entire onboarding process so you can stay focused on adding to your headcount.
Regulatory, Insurance, Tax Compliance: The local and federal employment laws and mandates are always changing. Your BPO stays on top of evolving legislation to ensure your employees are fully compliant at all times.
These are just some of the many services offered by a company that specializes in BPO services. An experienced provider will work with you to determine a customized solution that best serves your recruiting firm's needs and growth vision.
Benefits of Using Back-Office BPO
Staffing companies are drawn to BPO for a multitude of reasons, including:
Freeing up Resources Outsourcing administrative tasks enables staffing company owners to allocate resources, time, and attention to revenue-generating operations. Prioritizing selling and recruiting can quickly set a recruiting firm apart from the competition as well as accelerate enterprise growth. Simply put: you'll finally have the time you need to place more candidates and close more deals.
Building up Infrastructure Leveraging a BPO service provider can instantly make a recruiting firm seem more prominent and have a more developed infrastructure. A BPO team will streamline administrative efficiencies and eliminate service gaps on both a candidate- and client-facing level. Invoicing, payroll, onboarding—these and other administrative tasks will be conducted consistently, compliantly, and cohesively. Eliminating administrative service and performance gaps can also help improve overall service satisfaction.
Big Picture Analysis BPO also offers recruiting firms access to an entire suite of accurate reporting. Your BPO partner will collaborate with you to determine your firm's specific needs and the consistency of generated reports. They will develop a reporting schedule and dashboards to deliver the data intelligence and operational insight you need to expand your firm's reach.
Find Out More About Headcount Management's BPO Services
Headcount Management specializes in BPO capabilities to help recruiting firms grow and scale their operations. Schedule a consultation today to learn more about our customized approach to BPO solutions. Or, download our Markup Calculator to develop pricing strategies that help grow your headcount and keep your staffing operations healthy, no matter what the current economic climate.