As with any business, cash is king. This is no different for recruitment firms who also have to struggle with the negative cash flow challenges of having to pay candidates before being paid by clients.
While this is not new news, it can have an interesting flow on effect in the future. Many recruitment firms start with an applicant tracking software paired with an accounting tool to help get up and running. Many of these recruitment tools are great for small emerging businesses and provide good insight into early cash flow. The challenge becomes evident for staffing organisations who continue to grow their business and find that their recruitment software choices can now restrict their efficiency and the ability to grab new client opportunities.
Here are the most common factors that can restrict growing recruitment businesses from achieving their full potential and getting ahead.
To manage the key functions of recruitment, capturing timesheets, paying candidates and billing clients, businesses often have a separate applicant tracking system, timesheet tool, payroll system and billing system, which inevitably brings a multitude of problems, including;
- Paying for, installing and maintaining multiple disparate recruitment systems
- The time, effort and potential errors of manually transferring business-critical data between recruitment software systems
- Inefficiencies of having to handle the same data multiple times
- Managing multiple upgrades, testing and point-to-point integrations between various recruitment software systems
- Cumulative costs from dealing with multiple recruitment software vendors
Recruiters are hired to build relationships with clients and find the high-quality candidates fast. But they can’t do this if they’re bogged down with manual data processing such as transcribing timesheets, or pushing candidate data to the payroll team. Every time an employee has to manually adjust data it reduces the value-add they have with clients and candidates and increases the chance of errors and the costs to the business.
Not able to grow
In most cases, recruitment businesses start with a single office servicing a narrow range of industry sectors. As the business grows so can the number of brands, offices, and even countries, managing more and more candidates across an increasing number of sectors. This is great for the growth of the business but can be a challenge when your recruitment software tools don’t grow with you.
Recruitment businesses then fall into the trap of adapting their business to fit their current system, rather than updating to the right recruitment software that can scale with their growth aspirations. This hamstrings business owners from being able to launch new brands, setup new offices and take on new clients that will be the step change in their revenues.
Cashflow for growth
Last but not least, the biggest hurdle for businesses to scale is gaining access to cash. All recruitment businesses face the challenge of bridging the gap in cash flow between paying candidate wages and receiving payment from clients. Plus, on top of this, as your business grows, so does your cash requirement. Many owners face the challenge of not being able to take on new clients due to cashflow, or worse taking them on and getting caught out with late payments. Having access to the right tools includes access to all important cash to help fund outflows required to achieve step change in growth.
How to get ahead
FastTrack has been working with the leading staffing organisations in Australia and New Zealand for coming on 25 years. This history forged the launch of FastTrack360, a single end-to-end recruitment software solution designed to manage all recruit, time, pay and bill needs. Cloud-hosted, FastTrack360 is used by 6 of the top 10 leading agencies and is inherently built to scale to support recruitment owner’s growth aspirations.
Managing recruitment through to paying candidates and billing clients, FastTrack360 is your single source of data, which streamlines processes and eliminates the time, effort and costs of managing multiple systems and manual data entry.
Working with the market leaders, FastTrack360 empowers any recruitment business to seamlessly process large staffing volumes, with automated timesheet capture, award translation, candidate payroll and client billing. FastTrack360 also offers a comprehensive hierarchy, including country, brand, state, region, office, that readily scales to support staffing organisations’ growth aspirations.
Plus, when you pair FastTrack360 with FastTrack Funding, you have the business tools that will help you get ahead. FastTrack Funding offers access to cash to help bridge the gap between paying candidates and billing clients, so you can access the capital you need to take on the clients you want and grow your business.
Find out more about how FastTrack360 and FastTrack Funding can power you to increase your productivity and free you to focus on the things that really matter. Be ready to seize that next important opportunity and get ahead of the competition!