Recruitment agency directors should stay laser-focused on what they do best—making placements and scaling their business.
Tasks outside this core remit, such as back-office operations, accounting, IT, marketing, and HR, are best outsourced to avoid distractions and keep the agency running smoothly.
While keeping these services in-house may seem appealing, the hidden costs of hiring, training, and managing staff for non-core functions can quickly add up. Outsourcing allows you to stay agile, reduce overheads, and concentrate on what truly drives success—building relationships and growing your agency.
Below are 4 benefits that agency directors may not think to consider when looking to outsource their back office and accounting processes:
CONTINUITY OF SERVICE DURING HOLIDAY/SICKNESS
One of the biggest issues with having an internal back office and accounting team is what happens when staff go on holiday, are sick/injured or if they decide to leave the business. Due to their specialist skill set this is not something that can often be picked up by other employees or the directors so the back-office processes can grind to a halt. Outsourced providers will ensure that there are multiple staff to always complete the work and provide cover with no interruption.
PROTECTION SHOULD THE BACK OFFICE FAIL
Back-office and accounting staff carry significant responsibilities, including processing timesheets, chasing invoices, making payments to suppliers, staff, and candidates, and ensuring accurate data entry for bookkeeping and accounting.
However, mistakes in any of these areas—such as late contractor payments, missing funds, or missed HMRC deadlines—can lead to serious financial consequences for the agency. Outsourcing these functions provides an added layer of security, as external providers offer assurances against such risks and will compensate the agency if errors occur on their part.
PRICING STRUCTURE IN LINE WITH PLACEMENT LEVELS
When back-office and accounting tasks are handled in-house, staff are typically salaried employees with fixed costs—regardless of whether the agency makes placements. Hiring additional staff to manage workload increases can further drive-up monthly expenses.
In contrast, outsourced providers often structure their pricing based on production levels, such as the number of temps or contractors working weekly/monthly, the volume of permanent placements, and the number of internal staff on payroll. This flexible model ensures that costs scale in line with the agency’s activity, providing greater financial efficiency and adaptability.
RECRUITMENT DIRECTORS STRUGGLE TO MANAGE ACCOUNTING STAFF
Most recruitment agency directors have previously worked as successful recruitment consultants within another agency and know how to talk to fellow recruiters to motivate them to make more placements and grow the business. However, many lack experience in managing back-office and accounting staff, making it challenging to understand essential processes, recognise when support is needed, or provide the right guidance. Outsourced providers specialise in handling accounting and back-office operations, ensuring that all necessary processes are followed efficiently. They also oversee staff management on a daily basis, guaranteeing that operational demands are met and the back office runs smoothly.
MAYACHI has many years’ experience of working with various outsourced back office and accounting providers who are specific to the recruitment sector. MAYACHI can help source the best provider for an agency and ensure that the transition to the provider is as smooth as possible so there is no disruption to the existing clients and candidates working.
