The recent economic downturn from COVID-19 was virtually instant. In February 2020, the U.S. hit a 50-year high of 273,000 new jobs. Just one month later, the market plummeted, losing a total of 701,000 in March alone.
Staffing firms across the country are feeling the impact of the global pandemic across their operations. The recent economic downturn from COVID-19 was virtually instant. In February 2020, the U.S. hit a 50-year high of 273,000 new jobs. Just one month later, the market plummeted, losing a total of 701,000 in March alone.
Recruiting Firms Need to Prepare for Future Job Growth Now
As a staffing firm owner, you know firsthand the cyclical nature of your business. In fact, depending on how long you've been recruiting, this probably isn't your first down job market. The good news is that the job economy will recover. Many of us can reference the dot-com bubble of 2001 and the housing bubble of 2008 as proof of two critical factors. First, when it comes to U.S. job creation, what goes down eventually does come back up. Also, the staffing firms who take the time to run as leanly as possible during disruption have the best chance of surviving once the hiring floodgates finally open up again.
Some essential steps staffing firms can include now to ready their operations for future success include:
Evaluate Your Current Payroll Process During a slow economy, many staffing firms are forced to take a closer look at their financial resources and capabilities to eliminate inefficiencies and redundancies. As a result, many recruiting agencies often opt to outsource their payroll function to a third-party provider. An outsourced payroll solution can deliver a cash flow infusion and help reduce overall expenditures by bundling other essential functions and eliminating administrative interruptions.
Equip Your Recruiting Team Right now, many staffing agencies have allowed their recruiting teams to switch to a remote work environment. An at-home work model can be effective; however, agency owners help their employees maintain a structured and focused routine. Holding consistent digital meetings can help your employees feel engaged in their jobs as well as connected to the team. Additionally, it's essential to provide your offsite recruiters with all the tools they'll need while working from home. Setting consistent pricing is critical to financial success. A digital staffing calculator can help your team develop an effective pricing strategy on every placement to help maintain the firm's economic health.
Eliminate Time Wastes and Risks Navigating through the current economy requires recruiting agencies to focus all of their efforts on generating revenue. Manual tracking wastes time, but it can also increase room for error, risk, and lack of compliance across your organization. Automating and outsourcing various functions, such as timesheets, onboarding, and tax information to an Employer of Record (EOR) can quickly drive efficiencies and compliance with every placement. A qualified EOR will manage risk and required paperwork, allowing you and your team to stay focused on recruiting and the overall financial health of your business.
Keeping a steady eye on the financial health of your staffing firm is important in any economy. Our Gross Profit MarkUp Calculator can help your team effectively price every placement. Download this free online tool today!