As with many industries, temporary staffing agencies have faced a variety of challenges in recent years. The COVID-19 pandemic, more people working at home, and staffing shortages make it difficult to plan for the future. There’s also the looming possibility of a recession in the near future, if we’re not in one already. Let’s look at some strategic steps you can take to ensure your staffing agency prospers in any economic conditions.
Ensure Your Staffing Agency Prospers
1. Expand Your Locations and Industries
Recessions seldom affect every region and industry equally. The more types of customers you attract, the safer your business is from slowdowns in any particular industry or in any location. If you cover multiple industries and locations, you’re in a better position to thrive regardless of economic conditions. In order to identify the best diversification strategy, study the market. Look at which industries are growing and which may be experiencing slowdowns. You may also want to consult with a business advisor who is familiar with the staffing industry.
2. Prepare Your Staff With Ongoing Training
If your employees are equipped to handle a variety of tasks and assignments, you are better able to place them in positions during recessions or changing circumstances. When training them, be sure to emphasize the benefits of a flexible mindset. Soft skills such as stress management, conflict resolution, and emotional intelligence are just as important as hard skills.
3. Grow Your Agency Strategically
The above steps, such as updating your staff’s skills and diversifying can all be part of a strategic growth strategy. There are a few other steps that can foster growth as well.
- Seek new sources for client leads. Getting fresh leads helps you attain steady growth. Some methods to attract leads include using social media, attending trade shows and other industry events, and having a referral program to incentivize existing clients to send you leads.
- Vet your clients. When taking on clients, you want to make sure they’ll be able to pay. Credit checking and setting appropriate credit limits are essential to make sure your clients are reliable.
- Set prices efficiently. Setting the right pricing model can be tricky as market rates and employee availability can change rapidly. You need to stay current with the latest labor market trends. Software such as TalentNeuron is useful to help staffing agencies make data-driven decisions.
4. Leverage the Power of Payroll Funding
A staffing company needs to make payroll every week, even as your customers may take a month or more to pay their invoices. One of the best ways to ensure that your staffing company has consistent cash flow is to use payroll funding, also known as receivables financing. Payroll financing allows you to receive immediate payment for your open receivables. The payroll funding company buys your invoices, provides you with a cash advance, and then collects payment from your customers.
If you’re seeking a reliable and trustworthy solution for receivables funding, there are several compelling reasons to choose Riviera Finance.
- Experienced and Stable – Riviera Finance has over 50 years of experience meeting the financing needs of businesses in many industries, including staffing. Riviera is still under its original ownership and has earned a profit every year since 1969.
- Simple Application Process – There are no setup fees or long-term contracts needed. You have the flexibility to decide whether Riviera manages all or just some of your invoices.
- Fast Cash Advances – Riviera offers the industry’s quickest cash turnarounds.
- Maximum Advances – Our average advance is 92% of invoice value, allowing you to get as much cash as possible.
- Non-Recourse – Riviera’s payroll financing is non-recourse which means Riviera checks the credit of your customers and takes the credit risk on any invoices they purchase.
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