Outsourcing elements of a recruitment agency’s operations is nothing new. For many years, agencies have relied on external providers for IT, marketing, and HR services. However, when it comes to back-office and accounting functions, there is often a more hesitant attitude, with many business owners believing these tasks should remain in-house.
While this can be done internally, either by one or more staff members or by the director themselves, they may lack the specialist skills and up-to-date knowledge required to ensure these functions are managed correctly and in line with constantly changing legislation.
Below are six key occasions when a recruitment agency owner should consider implementing an outsourced back-office solution:
FROM THE BEGINNING OF THE BUSINESS
The best time to consider outsourcing the back office of a recruitment agency is as soon as the business starts. Any task that someone in an agency needs to complete, which is not recruitment, should ideally be outsourced: HR, IT, Compliance, Legal, Marketing and Accounts to avoid distractions from what the business should be doing. Outsourcing from the start will mean that the processes can be set from inception and become standard for when new staff members start, and as the business grows.
IF AN INTERNAL ACCOUNTS PERSON LEAVES
When an internal accounts employee leaves, the true scope of their responsibilities often becomes apparent, along with the extent of their business knowledge.
With an outsourced solution, knowledge is shared across a wider team, and processes are fully documented and followed, ensuring continuity of service and reducing reliance on any one individual.
WHEN THE ACCOUNTS FUNCTION IS PART-TIME
If your agency relies on a part-time employee to manage all or part of the back-office function, an outsourced provider can often deliver a full-time service when required, while keeping costs lower than employing additional staff.
IF THE COMPANY WINS A LARGE DEAL
If your agency secures a large new client or contract that increases the workload for your back-office team, an outsourced provider can absorb fluctuations in activity more easily than an internal team with fixed staffing costs. This provides flexibility to manage peaks and troughs in workload without committing to expensive long-term overheads.
FOR SECURITY PURPOSES
One of the biggest risks to any business lies in the data it holds, and the financial authority granted to internal staff. Employees may breach confidentiality, misuse funds, or disrupt operations, often without any guarantee of recovery or compensation.
An outsourced provider operates under a contractual service agreement, meaning service failures, security breaches, or fraudulent behaviour are covered within agreed service levels, providing greater protection for your business.
AS PART OF A COST-SAVING EXERCISE
Every agency should review its costs at least annually. Assessing whether to outsource the back-office function should form part of this review and not only from a cost perspective, but also in terms of time savings, operational efficiency, and scalability.
MAYACHI has many years of experience supporting recruitment agencies through outsourced back-office and accountancy solutions. We understand that time and cost savings can be achieved at any stage of an agency’s growth. Through our established relationships with specialist providers, MAYACHI can produce a full proposal outlining the efficiencies and financial benefits of moving from an internal model to a fully outsourced solution.
