Technology can also make or break a staffing agency's budget.
Statistics show that the global staffing agency software market was valued at 390.9 million in 2021. That number is projected to grow from $418.3 million by the end of this year and to $772.8 million by 2029.
Why Leasing Staffing Agency Tech Works: Save Time, Lower Costs, & Mitigate Risks by Outsourcing Back-Office Functionality
Applicant tracking systems, payroll systems, HR functionality, compliance mandates, reporting capabilities — building a tech stack that supports your staffing or recruiting firm can feel overwhelming and expensive. Fortunately, it doesn’t have to be. Many staffing agencies opt to outsource back-office functionality, essentially leasing a provider’s technology to maintain their current operations and deliver the support needed when scaling.
Many staffing agencies do outsource payroll. In fact, recent reports show that up to 45% of all small businesses opt to outsource their payroll function. However, outsourcing payroll alone isn’t enough to deliver the infrastructure a staffing agency needs to thrive. The best way to lower risk, maintain compliance, and decrease overall expenses in your staffing agency is to outsource your entire back office function.
A dynamic back-office solution will include a cutting-edge tech stack explicitly designed to support your staffing agency’s needs:
- Payroll
- Taxes
- Onboarding
- Human Resources
- Timekeeping
- Invoicing
- Customized Reporting
The right provider will offer agile support solutions that scale with your staffing agency at one flat monthly rate to ensure you get the technology needed without breaking the bank.
Beyond the ATS: Staffing Agencies Need to Find the Right Technology to Support Their Operations
No matter the size, scope, or industry of your recruiting business, the technology you use to support your operations plays a vital role in its ultimate success. But where to start?
Most staffing agency leaders recognize the need for an Applicant Tracking System (ATS) or CRM to manage clients and candidates. An ATS or CRM designed for staffing businesses is important — but it’s only one of the many technology solutions a staffing agency needs to thrive.
Beyond your contact database, you’ll also need a wide range of other systems in place to both sustain and scale your organization, including:
Payroll Support
Many staffing and recruitment firm owners would agree that their payroll platform is the most important component of their tech stack after their CRM or ATS system. A dynamic payroll system automates the payroll process, ensuring everyone within the hire gets paid (including you and your staff). Gusto and Quickbooks are two common options for staffing and recruiting companies.
HR Function
Some payroll technology does offer various HR components. However, the functionality can be limited or the options restricted based on your chosen version and selected program. It’s not uncommon for a staffing or recruiting company to use an HR system (HRIS) that’s separate from their payroll system. A dynamic HR system will automate manual tasks, manage the onboarding process, manage employee information, and help keep your organization HR compliant.
Tax & Insurance Compliance
Staffing agencies and recruitment firms must maintain full tax and insurance compliance at all times, making manual data entry a high-risk practice. Implementing a system that automates the process, as well as keeps up to date with the latest rules and regulations, is critical to avoiding non-compliance fees and penalties.
Reporting Capabilities
Accessing real-time information to make data-driven decisions across all levels of operations is critical for recruiting and staffing companies. Running a current headcount dashboard from your ATS is important, but seeing the big picture of your business is essential to identifying hiring trends and employment patterns that can help your organization grow. Some internal software systems can integrate with each other. However, many do not. As a result, many recruiting and staffing companies can find that they are running individual reports across their tech stack.
Contact Headcount Management Today to Learn More About The Back Office
Headcount Management’s The Back Office delivers back-office solutions designed specifically for the staffing industry that covers everything but the recruiting.
The Back Office integrates with an existing CRM system, allowing staffing and recruiting companies to lease our state-of-the-art tech stack for one flat monthly fee and benefit from our all-in-one back-office solution. We manage the entire back-office function, including payroll, compliance, onboarding, HR, timekeeping, accrual management, customized reporting and more. Schedule a time to learn more about how The Back Office can help you grow your staffing agency or recruiting firm today!
