Financial Management Best Practices: A Guide for Staffing Firms
Staffing firms face many of the same challenges in financial management as other industries – market fluctuations, economic conditions, competition for market share.
Winning staffing firms understand the importance of keeping a tight rein on their finances. No matter how profitable your business, it’s essential to examine and adopt practices that keep expenses down and profits high.
Here are seven lessons that can put you on par with the most successful staffing agencies.
Establish financial metrics. Why? It’s essential to assess where you are and where you want your firm to go. How do you measure success? Revenue? Profitability? There is no single right answer. Decide on your own priorities and check in regularly to make sure you are on the road to reaching your goals.
Work backward. If revenue is your most important metric, make adding new clients your priority. If profitability is your focus, choose your clients carefully to avoid taking on low-margin business. The decisions you make must conform to your goals to ensure your success.
Consider the value of time. What is your time worth? You may feel you have more control when you perform tasks manually, but chances are you are wasting time. Choose wisely what you spend your time on. Is there a program or system that can automate some of your process so you can be free to focus on your goals or revenue-driving activities?
Audit internal systems. Regularly assess how well each salesperson or recruiter is performing. Do they have the tools they need to produce? Automate their time-consuming tasks so they can focus on business development and driving revenue.
Update systems and technology. When is the last time you’ve taken a look at the technology that’s available to you? Technology changes rapidly. Make sure you have the right systems for your firm to remain efficient and profitable.
Remember the human element. State-of-the-art technology will only take your firm so far if you don’t have the right people in place. Analyze the data available to you to determine who is really living up to their potential and your expectations.
At Avionté, we provide solutions for staffing firms that help you to operate more effectively and keep your operational costs down. Our comprehensive staffing software delivers integrated software systems that make it easier to drive growth, maximize profitability and streamline your administrative tasks, so that you can focus on your serving your customers. To learn more about the many benefits of Avionté staffing software, contact us today.
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